2 weeks Ago By Qatar Tribune
Qatar tribune Satyendra Pathak DOHA Qatar’s banking sector continued its positive trajectory in February 2025, with total assets expanding by 1.1 percent month-on-month (MoM) to reach QR2.062 trillion, according to the latest report by QNB Financial Services (QNBFS).
On a year-to-date (YTD) basis, total assets have grown by 0.7 percent, reflecting sustained confidence in the sector’s performance. The report highlighted that total banking sector deposits increased by 1.
6 percent MoM in February 2025, bringing the YTD growth to 2.9 percent. Meanwhile, the sector’s loan book rose by 0.
5 percent MoM (+2.4% YTD). The stronger growth in deposits relative to loans led to a slight drop in the loan-to-deposit ratio (LDR) to 130.
5 percent, compared to 132 percent in January 2025, suggesting improved liquidity in the system. Public sector deposits registered a solid increase of 3.6 percent MoM (4.
6 percent YTD). Within this, the government segment—comprising about 35 percent of public sector deposits—posted the largest monthly gain of 8 percent MoM (7.3 percent YTD).
Deposits by government institutions (53 percent share) increased by 4.8 percent MoM (+3.4 percent YTD).
However, semi-government institutions’ deposits fell by 11 percent MoM, though they remained positive on a YTD basis (2.6 percent). Private sector deposits also showed strength, rising by 1.
1 percent MoM (2.6 percent YTD). The consumer sub-segment grew by 1.
4 percent MoM (2.7 percent YTD), while corporate deposits increased by 0.8 percent MoM (2.
5 percent YTD). In contrast, non-resident deposits slipped by 0.6 percent MoM, though they edged up by 0.
7 percent YTD. Notably, non-resident deposits accounted for 19.1 percent of total deposits as of February 2025, up from 18.
2 percent at the end of 2023, indicating that Qatari banks continue to tap into external funding sources. The QNBFS report highlighted that public sector lending was the primary driver behind the 0.5 percent overall loan book growth.
Public sector loans rose by 1.4 percent MoM (6.8 percent YTD).
The government segment, which makes up approximately 32 percent of public sector loans, was the standout performer, rising by 4.4 percent MoM (18.3 percent YTD).
Loans to semi-government institutions grew by 1.5 percent MoM (1.3 percent YTD), while government institutions (64 percent share) posted marginal gains (2.
2 percent YTD). Private sector loans ticked up by 0.2 percent MoM (0.
8 percent YTD). The contractors segment saw the highest MoM increase of 2.5 percent (5.
5 percent YTD), followed by the real estate segment (0.2 percent MoM, 1.2 percent YTD).
Consumption & others and services posted slight MoM gains of 0.2 percent and 0.1 percent, respectively.
However, general trade loans declined by 0.2 percent MoM, despite a YTD increase of 1.3 percent.
Loans extended outside Qatar rose by 0.2 percent MoM, with negligible growth of 0.02 percent YTD.
The loan provisions to gross loans ratio remained stable at 3.8 percent in February 2025. Provisions have increased significantly over recent years—from 2.
3 percent in 2019 to 3.9 percent in 2024—as banks continue to safeguard against credit risks, particularly in the contracting and real estate sectors, which account for most of the Stage 2 and Stage 3 loans. The ratio of liquid assets to total assets rose slightly to 30.
4 percent in February 2025 from 30.2 percent in January, underscoring a well-capitalized and liquid banking system, as per QNBFS. The February 2025 data, as outlined by QNB Financial Services, underscores the resilience of Qatar’s banking sector, with solid growth in both deposits and lending, particularly from the public sector.
While provisioning remains elevated due to ongoing sectoral exposures, the overall liquidity and asset base remain in a healthy and robust position—supporting the sector’s ability to fuel Qatar’s economic ambitions. Copy 15/04/2025 10.
