Doha, Qatar: Qatar’s banking sector continued to post steady lending growth and resilient deposit levels during May 2026, underscoring the sector’s stability despite a modest decline in total assets, according to the latest monthly banking sector update from QNB Financial Services (QNBFS).
The sector’s gross loan book expanded by 0.7% month-on-month to QR1.471 trillion, taking cumulative loan growth to 2.5% since the end of 2025. Deposits remained broadly unchanged from April at QR1.103 trillion but were 5.6% higher than year-end 2025 levels, reflecting sustained confidence in the country’s banking system.
The loan-to-deposit ratio (LDR) remained stable at 133% in May this year, compared with 137% at the end of 2025. QNBFS noted that as per Qatar Central Bank’s guideline for calculating the LDR (including stable sources of funds), the LDR is well below the 100% limit.
Growth in deposits continued to be supported by the public sector, where balances increased 1.7% from the previous month and 6.8% compared with year-end 2025. Deposits from government institutions rose 4.1% during May, while semi-government institutions recorded a 2.7% increase. Direct government deposits, however, declined 3% during the month and were down 4.5% from year-end levels.
Private sector deposits remained largely unchanged in May this year, with both corporate and consumer balances holding steady on a monthly basis. Compared with the end of 2025, private sector deposits were up 5.1%, supported by growth across both business and retail segments.
Meanwhile, non-resident deposits declined 2.1% during May 2026 but remained 4.5% above year-end 2025 levels. Their share of total deposits was unchanged at 18.6%.
Lending activity was driven primarily by the private sector, where loans increased 0.7% month-on-month and 1.6% since the beginning of the year. The strongest performance came from industrial lending, which surged 7.7% during May, while personal loans rose 1.9%. Lending across other private sector segments was broadly unchanged.
Public sector loans also edged higher, rising 0.6% during the month, although they remained 5.9% below year-end 2025 levels. Lending to the government and government institutions was flat, while loans to semi-government entities increased 3.1%, providing the main contribution to public sector loan growth.
Loans extended outside Qatar also continued to expand, rising 0.9% during May and posting robust growth of 50.6% compared with the end of 2025, reflecting continued international lending activity by Qatari banks.
Meanwhile the total banking sector assets declined by 0.7% month-on-month to QR2.191 trillion in May. Despite the monthly decline, total assets remained 1.8% higher than at the end of 2025, indicating that the sector continues to expand on an annual basis.
Qatar banking sector loan provisions to gross loans remained flat at 4.1%, compared with 4% at the end of 2025. Loan loss provisions were unchanged from April and were 5% higher than year-end levels. The Stage 3 loans remained stable, while banks continued to provide buffers for Stage 1 and Stage 2 loans.
Liquidity also remained robust, with liquid assets accounting for 30% of total assets in May in line with 31% in April and 30% in January/February/March, which remains in a strong position.
The consistently high level of liquidity reflects the banking sector’s strong funding position and continued financial resilience.
