Qatar’s banking sector maintained stable assets and lending in August 2026, while declining deposits pushed the loan-to-deposit ratio higher, highlighting the changing funding conditions facing lenders in one of the Gulf’s major economies.
Total banking sector assets remained unchanged month-on-month at QR2.194 trillion, representing a 2.3% increase from the end of 2025.
The loan book also held steady at QR1.486 trillion, up 3.5% from December 2025, stated the latest banking sector update by QNB Financial Services (QNBFS).
Deposits declined 0.8% from July to QR1.061 trillion, although they remained 1.6% above their end-2025 level.
“As lending held steady while deposits contracted, the sector’s loan-to-deposit ratio (LDR) increased to 140% in August, compared with 139% in July and 137% in December 2025,” QNBFS said.
Public sector deposits accounted for the largest share of the monthly decline, falling 1.3% in August and standing 0.7% below their December 2025 level.
Government deposits, in contrast, increased by 2.7% month-on-month but remained 8.8% below their year-end 2025 position.
“Deposits from government institutions fell 3.2% during August, while semi-government institutions recorded a 1.8% decline. Compared with December 2025, government institution deposits were unchanged, whereas semi-government deposits increased 15%,” QNBFS observed.
Non-resident deposits also weakened, declining 2.1% month-on-month. However, they remained 2.1% above their end-2025 levels. Their share of total deposits was broadly stable at 18.9%, compared with 18.8% at the end of last year.
Private sector deposits showed little monthly movement but remained 3.2% above their December 2025 level. Deposits from companies and institutions rose 1.5% in August, offsetting a 1% decline in consumer deposits.
On the lending side, international credit provided the strongest growth for Qatar’s banking sector, rising 4.6% month-on-month and surging 63.1% compared with the end of 2025.
This helped offset weaker public sector lending and kept the overall loan book unchanged.
Public sector loans declined 0.8% in August and were 4.6% below their December 2025 level. Government loans, which represent approximately 40% of public sector lending, fell 0.8% month-on-month but remained 14.9% above their end-2025 position.
Loans to government institutions declined 1.8% in August and fell 19.4% from December 2025, accounting for around half of public sector lending.
Semi-government institutions provided a partial offset, with lending rising 4.6% month-on-month and 25.5% compared with the end of 2025.
Private sector loans remained flat in August, standing 1.4% above their year-end 2025 level. Retail lending also showed no monthly change. Real estate loans were similarly unchanged but remained 2.4% below their December 2025 position.