Qatar bank provisions climb to $9bn: QCB

29/08/2025 02:01 AST

Loan and financing provisions across Qatari banks rose to 33 billion Qatari riyals ($9.06 billion) in July, up from 32.8 billion riyals during the same month last year.

Data from Qatar Central Bank also showed that expected credit losses surged 15.9 percent year on year, reaching 19.95 billion riyals by the end of July.

The increase reflects cautious lending practices and adjustments to credit risk assessments amid shifting market conditions.

The overall value of loans and credit facilities provided by Qatari banks grew 5.3 percent on an annual basis, amounting to 1.41 trillion riyals at the end of July. Of this total, 423.4 billion riyals was directed toward the public sector.

The increase in provisions and credit loss estimates comes amid broader regional economic developments, with Gulf countries maintaining growth momentum supported by ongoing diversification efforts and public spending programs.

In January, S&P Global anticipated a continued strong performance from Qatar's banking sector in 2025.

This stability is attributed to robust capital buffers, ample liquidity and support from increased LNG production - positively impacting both hydrocarbon and non-hydrocarbon credit growth.

The report also expected local funding sources to increasingly support credit expansion, amid slower public sector deleveraging.

According to a report from Qatar-based Bait Al Mashura Finance Consultations in June, Qatar's Islamic finance sector continued its growth in 2024, with total assets rising 4.1 percent year on year to reach 683 billion riyals.

Islamic banking assets alone grew 3.9 percent to 585.5 billion, while deposits surged 8.2 percent to 339.1 billion.

Financing increased 4.9 percent to 401.5 billion, with revenues up 12.6 percent and profits climbing 6 percent to 8.7 billion riyals.

Arab News