Doha, Qatar: Qatar Banking sector total assets went up 0.6 percent MoM (down 0.7 percent in 2023) in April 2023 to reach QR1.891 trillion.
The Qatar Banking sector total loan book went down 0.4 percent MoM (down 0.5 percent in 2023) and Deposits contracted by 0.3 percent MoM (-3.5 in 2023) in the month of April 2023.
The Private sector pushed the overall credit lower. As deposits moved down by 0.3 percent in April, the LDR declined to 129.6 percent vs. 129.7 percent in March 2023.
The overall loan book went down 0.4 percent in April 2023. Domestic Private Sector loans moved down by 0.6 percent MoM (0.2 percent in 2023) in April 2023.
The Services segment was the main reason behind the private sector loan drop. Services (contributes 30 percent to private sector loans) declined by 1.9 percent MoM (0.4 percent in 2023), while Consumption and Others (contributes 20 percent to private sector loans) moved lower by 0.4 percent MoM (-1.2 percent in 2023).
However, the Real Estate segment (contributes ~23 percent to private sector loans) edged up by 0.1 percent MoM (0.0 percent in 2023), while General Trade (contributes ~21 percent to private sector loans) gained marginally by 0.1 percent MoM (+1.8 percent in 2023) in April 2023. Total Public Sector loans remained flat MoM (-2.3 percent in 2023). The government segment (represents 28 percent of public sector loans) declined 1.0 percent MoM (-11.1 percent in 2023).
However, the government institutions’ segment (represents 67 percent of public sector loans) loan book increased 0.4 percent MoM (+2.0 percent in 2023), while the semi-government institutions’ segment gained 0.4 percent MoM (-1.9 percent in 2023). Outside Qatar loans moved up by 0.4 percent MoM (0.4 percent in 2023) during the month of April 2023.
Private sector deposits declined by 1.5 percent MoM (-2.0 percent in 2023) in April 2023. On the private sector front, the companies and institutions’ segment fell by 3.6 percent MoM (-7.5 percent in 2023). However, the consumer segment increased by 0.5 percent MoM (+3.5 percent in 2023) during April 2023.
Public sector deposits increased by 0.8 percent MoM (-4.1 percent in 2023) for the month of April 2023. Looking at segment details, the government segment (represents 30 percent of public sector deposits) was the main driver with a growth of 4.4 percent MoM (-4.4 percent in 2023), while the semi-government institutions’ segment rose by 2.0 percent MoM (-18.7 percent in 2023).
However, the government institutions’ segment (represents ~58 percent of public sector deposits) moved lower by 1.1 percent MoM (-0.4 percent in 2023) in April 2023.
Non-resident deposits shifted from its general downward trend for the second consecutive month and moved up by 0.4 percent MoM (-5.9 percent in 2023) in April 2023.
The Qatar Banking Sector Loan Provisions to Gross Loans was at 3.7 percent in both April and March 2023. The Qatar Banking Sector Liquid Assets to Total Assets was at a higher 31 percent in April 2023, compared to 30.4 percent in March 2023.
