The Banking Executive Magazine - August Issue

Qatar Banks' Total Assets SCALE UP TO $583BLN IN JUNE Total assets of commercial banks in Qatar expanded by 2.8% MoM dur- ing June to QR2,125tn, according to QNB Financial Services. Total assets moved up 3.8% in June compared to end-2024. Assets grew by an average 5.7% over the past five years (2020- 2024). Total assets of commercial banks in Qatar expanded by 2.8% MoM dur- ing June to QR2.125tn, according to QNB Financial Services (QNBFS). Total assets moved up 3.8% in June compared to end-2024. Assets grew by an average 5.7% over the past five years (2020-2024). Liquid assets to total assets stood at a healthy 32% level in June, QNBFS said. Loans disbursed by commercial banks in the country increased by 1% MoM in June to QR1,391bn. The loans increase in June was mainly due to an increase by 1%/0.7% in public sector/private sector loans. Loans expanded by 3.5% in June this year compared to a growth of 4.6% in 2024, growing by an average 5.4% over the past five years (2020- 2024). The government segment (represents 34% of public sector loans) was the main driver for the public sector gains with an expansion of 15.8% MoM (+23.9% compared to 2024), while the government institutions segment (represents 62% of total public sector loans) contracted by 5.2% MoM (-2.8% compared to 2024). However, the semi-government insti- tutions expanded by 9.4% MoM (- 2.0% compared to 2024) during June. According to QNBFS, loan provi- sions to gross loans remained flattish at 4.1% in June compared to May this year. Loan provisions have increased from 2.4% in 2020 to 4% in 2023 and stood at 4.1% (as of May this year) as banks have been provisioning for Stage 2 and Stage 3 loans, mainly emanating from the contracting and real estate sectors. Deposits (with local banks) gained 1.9% MoM in June to QR1,052.5bn, QNBFS noted. The deposits increase in June was driven by 1.7%/1.1% surge in public sector/private sector deposits and an expansion of 3.7% in non-resident deposits. Deposits grew up 2.5% in June com- pared to an increase by 4.1% in 2024, while they grew by an average 3.9% over the past five years (2020- 2024). The government segment (represents 34% of public sector deposits) moved up by 1.6% MoM (+2.4% versus 2024). Moreover, the government institu- tions’ (represents 54% of public sec- tor deposits) inched up by 0.9% MoM (+4.5% versus 2024), while the semi-government institutions’ seg- ment (represents 12% of public sec- tor deposits) also moved up by 0.9% MoM (-3.5% versus 2024) during June. In May, public sector deposits con- tributed 34.9% to total deposits, while private sector accounted for 46% and non-resident 19.2%. Loans to deposits ratio (simple LDR which does not take into account other stable sources of funds) moved down to 132.3% (as of June) with de- posits and loans broadly moving in lockstep. However, as per QCB’s guideline in calculating the LDR (including stable sources of funds), the LDR is well below the 100% limit, QNBFS noted. ISSUE 200 AUGUST 2025 the BANKING EXECUTIVE 25