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The QNBFS Monthly Banking Sector Update reported that government institutions, which account for around 56 percent of the public sector deposit base, expanded 4.1 percent from April and 11.9 percent against the end of 2025. Semi-government institutions, representing roughly 15 percent of the category, grew 2.7 percent month-on-month and 13.4 percent versus year-end 2025. The government segment itself, comprising about 29 percent, eased 3.0 percent in the month and stood 4.5 percent below end-2025 levels.
Total deposits across the banking sector held steady at QR1.103 trillion in May, a level 5.6 percent higher than at the close of 2025, according to the QNBFS data. This kept the loans-to-deposits ratio unchanged at 133 percent, down from 137 percent recorded in December 2025. QNB Group noted that under the Qatar Central Bank’s adjusted methodology that incorporates stable funding sources, the ratio remains well below the regulatory ceiling of 100 percent.
Total banking sector assets reached QR2.367 trillion, reflecting a 0.7 percent decline from the prior month but a 1.8 percent increase from year-end 2025, the QNBFS update showed. The overall loan book advanced 0.7 percent month-on-month to QR1.471 trillion, standing 2.5 percent above end-2025, with private sector loans climbing 0.7 percent and outside-Qatar loans rising 0.9 percent in May. Industry loans within the private sector increased 7.7 percent month-on-month while personal loans gained 1.9 percent.
Public sector loans edged up 0.6 percent from April but remained 5.9 percent below year-end 2025, a gap that traces mainly to government institutions whose book was flat on the month, QNBFS figures indicated. Semi-government lending provided an offset, climbing 3.1 percent month-on-month and 14.8 percent versus the end of 2025. The government segment of public sector loans stayed flat in May but rose 14.6 percent from year-end 2025.
Asset quality metrics remained stable with loan provisions to gross loans at 4.1 percent in May against 4.0 percent at the end of 2025, the report found. Loan-loss provisions were largely unchanged on the month but up 5.0 percent year-to-date while Stage 3 loans stayed stable as banks continued building buffers for Stage 1 and Stage 2 exposures. Liquidity indicators held firm with liquid assets representing 30 percent of total assets, roughly in line with levels seen in the first quarter.
Earlier QNBFS monthly updates showed public sector deposits had expanded by 3.1 percent month-on-month in April 2026 after a 6.5 percent gain in March. S&P Global Ratings assessed in a January 2026 review that the Qatari banking sector would remain resilient throughout the year with the average non-performing loan ratio projected to decline to about 3.4 percent. Qatar Central Bank statistics for May aligned with the QNBFS totals, placing sector deposits near QR1.103 trillion and assets at QR2.367 trillion.
