Qatar Banking Sector Loans Rise 1.9% To QR1,372.5Bn In January

Doha, Qatar: Banks in Qatar witnessed an uptick as the credit facilities witnessed growth of QR1,372.5bn showing a surge of 1.9 percent month-on-month (m-o-m) in January this year according to QNB financial Services (QNBFS) monthly banking sector indicators released, yesterday.

The rise in loans by the commercial banks' in January 2025 was mainly due to a gain by 5.3 percent in the public sector. The loans went up by 4.6 percent in 2024, compared to a growth of 2.5 percent in 2023 and grew by an average 5.4 percent over the past five years (2020-2024).

The loan provisions to gross loans were marginally lower at 3.8 percent in January 2025, compared to 3.9 percent in December 2024.

The deposits gained by 1.3 percent month-on-month (m-o-m) to reach QR1,040bn in January this year. The deposits grew in January this year which was mainly due to gains by 1.5 percent in the private sector deposits and a rise by 1 percent in the public sector deposits.

The deposits by commercial banks in Qatar increased by 4.1 percent in 2024 compared to a decline by 1.3 percent in 2023. While it grew by an average 3.9 percent over the past five years (2020-2024).

QNBFS further noted that the total assets of commercial banks in Qatar edged lower by 0.3 percent during January this year to QR2.040 trillion.

The total assets slide in January 2025 was mainly due to a decline by 2.3 percent in foreign assets and a 8.4 percent drop in reserves.

The total assets gained by 3.9 percent in last year compared to a growth of 3.4 percent in 2023. The assets grew by an average 5.7 percent over the past five years (2020-2024).

The liquid assets to total assets moved lower to 30.2 percent in January 2025, compared to 31.3 percent in December 2024.

Meanwhile the loans to deposits ratio moved up to 132 percent as at January this year.

The loans went up by 1.9 percent in January this year to reach QR1,372.5bn, while deposits gained 1.3 percent during the same period to reach QR1,040bn.

The loan provisions to gross loans were marginally lower at 3.8 percent as at January this year. The loan provisions have increased from 2.4 percent in 2020 to 4 percent in 2023 and 3.8 percent during the period in review as banks have been provisioning for Stage 2 and Stage 3 loans mainly emanating from contracting and real estate sectors.

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