Qatar banking sector total assets scale up 1.7% m-o-m to reach QR1.846tn in June: QNBFS

Qatar banking sector’s total assets have scaled up 1.7% month-on-month and 1% this year until June to reach QR1.846tn, according to QNB Financial Services report

Qatar banking sector’s total assets have scaled up 1.7% month-on-month (m-o-m) and 1% this year until June to reach QR1.846tn, QNB Financial Services (QNBFS) said in a report. Deposits went up by 1.7% during June 2022 to reach QR984bn. Deposits gain in June was mainly due to a 7.4% increase in public sector deposits, QNBFS noted in its ‘Qatar monthly banking sector’ update. Deposits have gone up by 1% in 2022, compared to a growth of 7.6% in 2021. Deposits grew by an average 6.1% over the past five years (2017-2021). Loans increased by 0.7% during June to reach QR1,221.4bn, QNBFS said and noted loans increase last month was due to a growth by 1.1% from the private sector. Loans have moved up by 0.4% in 2022 (until June), compared to a growth of 7.8% in 2021. Loans grew by an average 7.6% over the past five years (2017-2021), it said. Loans to deposits ratio (LDR) went down during the month to 124.1% in June. Loans increased by 0.7% in June to reach QR1,221.4bn , while deposits went up by 1.7% last month to reach QR984.0bn, QNBFS said. In terms of deposits, details indicate the government institutions’ segment (represents nearly 54% of public sector deposits) increased by 8% m-o-m (+17.4% in 2022), while the government segment (represents nearly 32% of public sector deposits) gained by 1.9% m-o-m (3.5% in 2022) and the semi-government institutions’ segment moved up by 18.6% m-o-m (+29% in 2022). However, private sector deposits went down by 0.3% m-o-m (+6.7% in 2022). On the private sector front, the consumer segment moved down by 1.1% m-o-m (+3% in 2022), while the companies and institutions’ segment went up by 0.6% m-o-m (+11.1% in 2022). Non-resident deposits declined by 2% m-o-m (-20.6% in 2022) in June. The overall loan book moved up by 0.7% in June, QNBFS noted. Total private sector loans increased by 1.1% m-o-m (+3% in 2022) in June. Consumption and others, services and real estate segments mainly contributed toward the private sector loan growth for the month. Consumption & Others (contributes nearly 21% to private sector loans) went up by 2.2% m-o-m (+3.1% in 2022). Services (contributes nearly 29% to private sector loans) increased by 1.4% m-o-m (+4.6% in 2022) during June. Real estate segment (contributes nearly 21% to private sector loans) moved up by 1.5% m-o-m (+4.2% in 2022). General Trade (contributes nearly 21% to private sector loans) edged up by 0.2% m-o-m (+1.8% in 2022) last month. Domestic public sector loans went up by 0.2% m-o-m (-4% in 2022). The government institutions’ segment (represents nearly 60% of public sector loans) loan book increased by 0.3% m-o-m (0.7% in 2022), while the semi-government institutions’ segment moved up by 2.9% m-o-m (+3.8% in 2022). However, the government segment (represents nearly 34% of public sector loans) declined by 0.2% m-o-m (-12.1% in 2022). Outside Qatar loans went down by 1.1% m-o-m (-4.2% in 2022) during June, QNBFS revealed.