Assets of Qatari banks rise 6.7% to QR1.795 trillion in Nov 2021: QNBFS

Satyendra Pathak Doha Total assets of Qatari banks have increased 6.7 percent year to date (YTD) in November and 0.2 percent month-on-month (MoM) to reac...

Satyendra Pathak Doha Total assets of Qatari banks have increased 6.7 percent year to date (YTD) in November and 0.2 percent month-on-month (MoM) to reach QR1.795 trillion, QNB Financial Services (QNBFS) has said in its latest report. According to QNBFS Qatar Monthly Banking Sector Update for November 2021, loans of Qatari banks increased by 0.5 percent during November 2021 to reach QR1,213.8 billion. Loans increase in November 2021 was mainly due to a gain of 1.1 percent from the private sector.According to the report, loans grew by 7.5 percent YTD for 2021, compared to a growth of 8.6 percent in 2020. Loans grew by an average 8.5 percent over the past five years (2016-2020), it saidGeneral Trade and Services segment mainly contributed toward the private sector loan growth for the month of November 2021. General Trade that contributes 21 percent to private sector loans moved up by 2.4 percent MoM and 11.2 percent YTD. Services that contributed 28 percent to private sector loans increased by 1.8 percent MoM and 14.9 percent YTD. Consumption and Others segment that contributes 21 percent to private sector loans increased by 0.3 percent MoM and 2.2 percent YTD. However, Real Estate contributed 21 percent to private sector loans went down by 0.1 percent MoM and 5.4 percent YTD during the month of November 2021.Total domestic public sector loans went down by 0.4 percent MoM and went up by 7.7 percent YTD. The government segment’s loan book declined by 5.1 percent MoM and 4.6 percent YTD 2021. However, the report said, the government institutions’ segment that represented 57 percent of public sector loans went up by 2.8 percent MoM and 10.7 percent YTD, while the semi-government institutions’ segment moved up by 2.5 percent MoM and declined by 1.3 percent YTD during the month of November 2021.As per the report, deposits of commercial banks in the country went down by 0.2 percent MoM during November 2021 to QR963.8 billion.The report said that deposits drop in November 2021 was mainly due to a decline in non-resident deposits by 3 percent.Deposits, however, grew by 6.4 percent YTD for 2021, compared to a growth of 6.6 percent in 2020. Deposits grew by an average 7 percent over the past five years (2016-2020), the report said.Non-resident deposits declined by 3 percent MoM and increased by 13.2 percent YTD in November resulting in the overall deposits drop. Public sector deposits went up by 1.5 percent MoM and 7.6 percent YTD.Looking at segment details, the government institutions’ segment that represented 57 percent of public sector deposits moved up by 2.1 percent MoM and 3 percent YTD 2021.The semi-government institutions’ segment increased by 3.2 percent MoM and 20.7 percent YTD 2021. The government segment declined by 0.4 percent MoM and increased by 11.4 percent YTD. Private sector deposits went up by 0.7 percent MoM and 1.5 percent YTD 2021.On the private sector front, the consumer segment moved down by 0.2 percent MoM and went up by 1.5 percent YTD, while the companies and institutions’ segment went up by 1.8 percent MoM and 1.5 percent YTD 2021.According to the report, the loans to deposits ratio went up during the month to 125.9 percent as of November 2021.