QNB Financial Services (QNBFS) issued its monthly update for the banking sector in the State of Qatar for the month of July 2026, which showed stability in the total assets of the banking sector without change on a monthly basis (+2% compared to the end of 2025), reaching 2,194 billion riyals.
The report also showed that the loan portfolio in the banking sector increased by 0.6% on a monthly basis (+3.2% compared to the end of 2025) to reach 1,482 billion riyals, while deposits declined by 3.2% on a monthly basis to 1,070.2 billion riyals (+2.5% compared to the end of 2025) during July 2026. Accordingly, the ratio of loans to deposits increased to 139% in July compared to 133% in June (137% in December 2025). However, according to the Qatar Central Bank’s guidelines for calculating the loan-to-deposit ratio, which includes stable sources of financing, the ratio is still below the maximum of 100%.
Public sector deposits declined by 8.7% on a monthly basis (+0.6% compared to the end of 2025) during July 2026. Looking at sector details, government sector deposits (representing about 29% of public sector deposits) declined by 2.1% on a monthly basis (-11.2% compared to the end of 2025). Deposits of government institutions (representing about 55% of public sector deposits) also declined by 13.9% on a monthly basis (+3.3% compared to the end of 2025), while deposits of semi-governmental institutions (representing about 17% of public sector deposits) decreased by 0.9% on a monthly basis (+17.2% compared to the end of 2025) during July 2026.
As for non-resident deposits, they increased by 2.6% on a monthly basis (+4.3% compared to the end of 2025) during July 2026. The share of non-resident deposits in total deposits stabilized at 19.1% compared to 18.8% at the end of 2025.
Private sector deposits declined by 1.0% on a monthly basis (+3.1% compared to the end of 2025) during July 2026. At the level of details, corporate and institutional deposits declined by 2.0% on a monthly basis (+2.7% compared to the end of 2025), while individual sector deposits stabilized without change (+5.2% compared to the end of 2025).
The report stated that the total loan portfolio recorded an increase of 0.6% on a monthly basis during July 2026, as a result of the good performance of public sector loans, which compensated for the weak performance of private sector loans. Public sector loans also increased by 1.3% on a monthly basis (-3.9% compared to the end of 2025). Government sector loans (representing about 40% of public sector loans) increased by 0.7% on a monthly basis (+15.8% compared to the end of 2025), while government sector loans (representing about 51% of total public sector loans) increased by 1.6% on a monthly basis (-18.0% compared to the end of 2025). Loans to semi-governmental institutions (representing about 10% of total public sector loans) also increased by 2.1% on a monthly basis (+20.0% compared to the end of 2025) during July 2026.
Private sector loans also stabilized with little change on a monthly basis (+1.0% compared to the end of 2025) during July 2026, as individual sector loans declined by 1.0% on a monthly basis (+2.3% compared to the end of 2025), while real estate loans increased by 0.7% on a monthly basis (-2.6% compared to the end of 2025). The rest of the sectors stabilized without significant change.
Loans outside Qatar continued to rise, recording a growth of 1.7% during July 2026 (+58.6% compared to the end of 2025).
The ratio of loan provisions to total loans in the Qatari banking sector stabilized at 3.8% on a monthly basis, compared to 4% at the end of 2025. Provisions for loan losses also stabilized without change on a monthly basis (-1.7% compared to the end of 2025).
The ratio of liquid assets to total assets reached 30% during July 2026, in line with the levels of May, June and December 2025, which reflects the banking sector continuing to enjoy strong levels of liquidity.
