Qatar Banking Sector’s Total Assets Cross QR2tn Milestone in August

The total assets of Qatar’s banking sector surpassed the QR2 trillion mark for the first time in August, driven largely by domestic assets, according to the latest report from QNB Financial Services (QNBFS). The increase of 0.7% in August brought total assets to QR2.002 trillion, a significant milestone for the sector.

QNBFS’s Qatar Monthly Key Banking Indicators report noted that this growth was primarily due to a 1% rise in domestic assets. Overall, the sector’s assets have grown by 1.7% in 2024, a slower pace compared to the 3.4% growth seen in 2023. Over the past five years (2019-2023), assets have increased at an average annual rate of 6.8%.

While liquid assets slightly declined, representing 29.7% of total assets in August compared to 29.9% in July, the report highlighted a steady increase in deposits and credit facilities. Deposits grew by 0.3% to QR1.035 trillion, with public sector deposits leading the rise, increasing by 1.9%. In 2024, deposits have grown by 5%, reversing the 1.3% decline seen in 2023.

On the lending front, loans extended by Qatar’s commercial banks increased by 0.5% in August, reaching QR1.343 trillion. This was driven by a 0.4% rise in private sector loans and a 0.5% increase in public sector loans. The real estate sector continued to be the primary driver in private sector lending, with loans in this segment rising by 2.1% month-on-month, contributing to an 8.5% growth for the year.

In the public sector, government loans saw a notable 1.7% increase in August, representing 29% of public sector loans. However, government institutions, which account for 65% of public sector loans, showed a slight decline of 0.1%.

Deposits in the public sector surged by 1.9%, largely due to a 7.1% rise in government deposits, which have grown by an impressive 31.1% so far in 2024. Conversely, private sector deposits dipped slightly by 0.1% in August, despite showing a modest 0.5% increase for the year.

Non-resident deposits saw a 2.1% decline in August but have posted a 9.1% increase in 2024 overall.

An analyst told Gulf Times that the most notable development in August was the record-breaking growth in total assets, driven by robust increases in both the real estate and government sectors. “Government deposits showed a significant surge, particularly with a 7.1% rise in August and an annual jump of 31.1% in 2024,” the analyst noted.