Doha, Qatar: The total assets of commercial banks operating in Qatar increased by 5.8 percent to QR1.97 trillion in February 2024 according to Qatar Central Bank (QCB) official data.

Qatar Central Bank posted on its X platform that the key banking sector indicators recorded growth in February this year compared to last year.

The key highlights from February 2024 Monthly Monetary Bulleting showed that the total assets of commercial banks saw year-on-year expansion by 5.8 percent to reach QR1.97 trillion.

The total domestic deposits also witnessed jump by 9.2 percent on yearly basis to reach QR845.8bn in February this year.

While the domestic credit in February 2024 soared 5.8 percent year-on-year to QR1.26 trillion.

QCB post further stated that the total broad money supply (M2) increased by 6.5 percent to reach QR747.5bn in February 2024 on year-on-year basis.

The year 2023 emerged as a year of growth post a period of adaptation and investment in the region, reflecting not only the strength of GCC economies but also the results of effective management, digital transformation and improved return on investments over the past few years.

KPMG noted in ninth edition of its Gulf Cooperation Council (GCC) listed banks’ results report that in Qatar banking sector, this year’s report indicates that Qatar National Bank continues to maintain the top spot as the largest bank in the GCC in terms of assets at $338bn.

Qatar also boasts the lowest cost-to-income ratio at 24.6 percent and the highest coverage ratio for stage 3 loans at 84.2 percent.

Profitability across the region witnessed a significant double-digit increase of 23.1 percent this year, primarily fueled by growth in loan books, improved interest margins, reduced loan impairments, and ongoing cost-efficiency measures.

Asset growth remained robust, with banks expanding their asset base by 8.1 percent, driven by lending to high-quality customers.

The net interest margins increased by 0.2 percent as a result of the rising interest rate environment which helped drive profit growth.

While the overall NPL ratio for the GCC banking sector decreased by 0.2 percent to 3.5 percent, indicating a conservative approach to credit risk management.

Return on assets (ROA) (1.3 percent in 2022) increased by 0.7 percent compared to the previous year reflecting higher profitability relative to asset growth.

GCC banks have demonstrated resilience and readiness to adapt and navigate global economic conditions, setting a strong foundation for future growth.

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