Doha, Qatar: Qatar’s banking sector total assets increased 1.4% MoM (up 0.05% in 2023) in June 2023 to reach QR1.906 trillion.
The Qatar banking sector total loan book moved up 0.3% MoM (up 0.01% in 2023) and deposits edged up by 0.1% MoM (-4.4% in 2023) in the month of June 2023. Both the public and private sectors pushed the overall credit higher. As deposits edged up by 0.1% in June, the LDR increased to 131.5% vs. 131.2% in May 2023.
The overall loan book moved up 0.3% in June 2023. Total public dector loans went up by 0.6% MoM (-1.9% in 2023). The semi-government institutions’ segment shot up 42.9% MoM (38.1% in 2023), while the government segment (represents ~28% of public sector loans) moved higher by 0.7% MoM (-11.5% in 2023). However, the government institutions’ segment (represents ~65% of public sector loans) loan book declined by 2.5% MoM (-0.3% in 2023).
Domestic private sector loans moved up by 0.2% MoM (+0.9% in 2023) in June 2023. The Consumption & Others segment was the main driver for the private sector loan increase. Consumption & Others (contributes ~20% to private sector loans) increased by 1.3% MoM (1.5% in 2023), while General Trade (contributes ~21% to private sector loans) moved up by 0.4% MoM (+3.0% in 2023), and Services (contributes ~30% to private sector loans) edged up marginally by 0.05% MoM (1.8% in 2023).
However, the Real Estate segment (contributes ~22% to private sector loans) declined by 0.7% MoM (-1.8% in 2023) in June 2023. Outside Qatar loans moved up by 0.2% MoM (-0.9% in 2023) during the month of June 2023.
The non-resident deposits increased by 1.5% MoM (-7.1% in 2023) in June 2023, partly supporting the overall deposits increase for the month.
Private sector deposits edged up by 0.1% MoM (-1.4% in 2023) in June 2023. On the private sector front, the consumer segment increased by 0.3% MoM (+4.1% in 2023), while the companies & institutions’ segment declined by 0.2% MoM (-7.0% in 2023) during June 2023.
Public sector deposits went down by 0.7% MoM (-6.8% in 2023) for the month of June 2023. Looking at segment details, the government institutions’ segment (represents ~57% of public sector deposits) mainly pulled down the public sector, with a drop by 6.0% MoM (-5.3% in 2023), while the government segment (represents ~28% of public sector deposits) moved lower by 2.0% MoM (-13.8% in 2023).
However, the semi-government institutions’ segment increased significantly by 29.7% MoM (2.3% in 2023) in June 2023.
Qatar banking sector loan provisions to gross loans stood at 3.8% in June 2023, similar to that of May 2023. The banking sector liquid assets to total assets was at a higher 31.1% in June 2023, compared to 30.4% in May 2023.
