Qatar’s Banking Sector Shows Strong Start in 2025 with Robust Growth in Loans and Deposits

Qatar National Bank reports the total assets decreased by 0.3 percent in January to QR2.040 trillion.

Qatar’s banking sector hit the ground running in January, with the loan book and deposits showing robust increases, as per Qatar National Bank Financial Services (QNBFS).

Qatar National Bank (QNB) is a Qatari multinational commercial bank (MCB) headquartered in Doha, Qatar. The bank’s ownership is distributed equally between the Qatar Investment Authority and members of the public.

Credit facilities extended by the local banks increased by 1.9 percent during January to reach QR1,372.5 billion. According to QNB Financial Services, the loans increased in January due to a 5.3 percent increase in the public sector.

Loans increased by an average of 4.6 percent in 2024 after expanding its growth from 2.5 percent in 2023, rising by 5.4 percent over the previous five years from 2020 to 2024.

In January 2024, loan provisions to gross loans were 3.8 percent, marginally lower than the 3.9 percent in December 2024.

Deposits went up by 1.3 percent during January to reach QR1,040.0 billion.

The increase in deposits in January 2024 was due to the 1.5 percent rise in private-sector deposits and the 1 percent increase in public-sector deposits.

Over the previous five years, from 2020 to 2024, deposits increased by an average of 3.9 percent, rising 4.1 percent in 2024 after declining 1.3 percent in 2023.

According to QNBFS data, total assets decreased by 0.3 percent in January to QR2.040 trillion.

Total assets decreased in January. It was mainly due to a 2.3 percent decline in foreign assets and an 8.4 percent drop in reserves.

In 2024, total assets increased by 3.9 percent, up from 3.4 percent in 2023; assets expanded by an average of 5.7 percent over the previous five years from 2020 to 2024.

The ratio of liquid assets to total assets decreased to 30.2 percent in January from 31.3 percent in December 2024, which is still a nail on the head.

In January 2024, the ratio between the loan provisions and gross loans decreased slightly to 3.8 percent from 3.9 percent in December 2024.

Due to banks’ provisioning for Stage 2 and Stage 3 loans, due to contracting and real estate sectors, loan provisions have increased from 2.3 percent in 2019 to 3.9 percent in 2024 and 3.8 percent in January.

According to QNBFS, there was an increase in the overall loan book by 1.9 percent in January due to public sector loans.

In January, total public sector loans increased by 5.3 percent monthly-on-monthly (MoM), a 5 percent increase from 2024.  

The government institutions segment, which represents 65 percent of public sector loans, increased by 2.2 percent monthly-on-monthly (MoM), a 7.7 percent increase in 2024. The government segment, which accounts for 31 percent of public sector loans, was the primary driver of the public sector gain, rising 13.3 percent, a 3.6 percent increase in 2024.

However, according to QNBFS, the semi-government institutions sector saw a tiny decline of 0.2 percent monthly-on-monthly (MoM), an 18 percent decrease in 2024.

An analyst claims that 2025 has gotten off to a solid start because January saw sturdy gains in the loan book and deposits.

The analysts added that the 1.9 percent increase in the total loan book in January 2025 was mainly from the public sector, as government credit facilities rose by 13.3 percent and government overdraft facilities rose by 26.5 percent. This suggests that the government needs to increase its spending.

According to the analysts, the total deposit growth of 1.3 percent at the beginning of 2025 came from the private, public, and non-resident sectors.