Doha - Qatar’s banking sector continued to exhibit underlying strength and stability in October 2025, with total assets standing at QR2.126 trillion, marginally lower by 1.1 percent month-on-month (MoM) but still higher by 3.9 percent compared to year-end 2024, reflecting sustained annual growth, according to a report published by QNB Financial Services (QNBFS)recently.

The sector’s loan book remained broadly stable on a monthly basis, while posting a solid 6.0 percent increase versus year-end 2024. Deposits edged down 0.9 percent MoM in September 2025 but remained 1.5 percent higher compared to FY2024. As a result, the loan-to-deposit ratio (LDR) increased moderately to 137 percent in October from 135 percent in September.

Public sector deposits declined 2.3 percent MoM in October, though they remained 2.0 percent above FY2024 levels. Government deposits eased 1.4 percent MoM, while deposits of government institutions fell 5.7 percent MoM, remaining broadly flat year-on-year. In contrast, semi-government institutions recorded a strong rebound, expanding deposits by 10.4 percent MoM and 11.0 percent versus FY2024.

Non-resident deposits rose 0.7 percent MoM during October, reflecting continued external engagement with the Qatari banking system, although their share of total deposits moderated to 18.4 percent from 19.5 percent in FY2024.

Private sector deposits declined marginally by 0.5 percent MoM but grew 3.5 percent compared to FY2024. Consumer deposits remained stable sequentially and increased 5.3 percent year-on-year, underscoring steady household confidence.

On the lending side, the overall loan book increased 0.4 percent MoM in October, supported by strong public sector borrowing. Public sector loans rose 1.1 percent MoM and 13.0 percent versus FY2024, led by a 2.3 percent MoM increase in government lending, which posted a sharp 43.6 percent year-on-year rise. Loans to government institutions remained stable, while semi-government lending recorded modest growth.

Private sector loans were flat MoM but continued to expand by 3.3 percent compared to FY2024, indicating steady credit conditions. Loans outside Qatar declined marginally by 0.7 percent MoM but remained higher by 2.5 percent versus year-end 2024.

Asset quality indicators remained stable, with loan provisions to gross loans unchanged at 4.2 percent in October, compared to 3.9 percent at year-end 2024. Provisions increased 14.5 percent year-to-date, reflecting prudent risk management, while Stage 3 loans remained stable.

Liquidity remained strong, with liquid assets accounting for 30 percent of total assets in October, unchanged from September, highlighting the sector’s solid liquidity position. Overall, the QNBFS report noted that Qatar’s banking sector continues to display resilience, strong liquidity buffers, and prudent risk management, supporting sustained economic activity.

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