- Qatar’s commercial banks witnessed a notable 5.8% increase in total assets, reaching QR1.97 trillion by February 2024, indicating robust growth in the sector.
- Domestic deposits surged by 9.2%, reaching QR845.8 billion, while domestic credit saw a 5.8% increase to QR1.26 trillion during the same period, showcasing strong performance in Qatar’s banking sector.
- The GCC banking sector experienced significant growth in 2023, with Qatar National Bank emerging as the largest bank in the GCC by assets, standing at $338 billion, reflecting effective management and digital transformation.
- GCC banks expanded their asset base by 8.1%, with improved profitability indicators such as a decrease in non-performing loans ratio and an increase in return on assets, signaling strength and adaptability to global economic conditions.
According to official data from Qatar Central Bank (QCB), commercial banks operating in Qatar saw a 5.8 percent increase in total assets, reaching QR1.97 trillion in February 2024. The key banking sector indicators, as reported on QCB’s X platform, exhibited growth compared to the previous year.
In February 2024, total domestic deposits surged by 9.2 percent year-on-year, reaching QR845.8 billion. Additionally, domestic credit saw a 5.8 percent increase to QR1.26 trillion during the same period.
QCB’s Monthly Monetary Bulletin for February 2024 revealed that the total broad money supply (M2) rose by 6.5 percent year-on-year, reaching QR747.5 billion.
The year 2023 marked a period of growth for the GCC economies, reflecting effective management, digital transformation, and improved return on investments. KPMG’s ninth edition of the GCC listed banks’ results report highlighted Qatar National Bank as the largest bank in the GCC by assets, standing at $338 billion.
Qatar boasted the lowest cost-to-income ratio at 24.6 percent and the highest coverage ratio for stage 3 loans at 84.2 percent, according to the report. Profitability across the region increased significantly by 23.1 percent, driven by growth in loan books, improved interest margins, reduced loan impairments, and cost-efficiency measures.
Banks in the GCC expanded their asset base by 8.1 percent, driven by lending to high-quality customers. Net interest margins increased by 0.2 percent due to the rising interest rate environment, contributing to profit growth.
The overall non-performing loans (NPL) ratio for the GCC banking sector decreased by 0.2 percent to 3.5 percent, reflecting a conservative approach to credit risk management. Return on assets (ROA) increased by 0.7 percent compared to the previous year, reaching 1.3 percent in 2022, indicating higher profitability relative to asset growth.
GCC banks have demonstrated strength and flexibility to adapt to global economic conditions, laying a strong foundation for future growth.
