Doha, Qatar: Total assets of Qatar banking sector increased by 1.2% MoM (up 3.4% in 2023) in December 2023 to reach QR1.969 trillion, QNB Financial Services (QNBFS), has said in its monthly banking sector update.
Qatar banking sector total loan book went up 1.1% MoM (up 2.5% in 2023), while deposits moved up 0.5% MoM (-1.3% in 2023) in the month of December 2023. The public and private sectors both pushed the overall credit higher. As deposits edged up in December, the LDR went up to 130.6% vs. 129.7% in November 2023.
The overall loan book made gains of 1.1% in December 2023. Total public sector loans increased 2.6% MoM (-1.6% in 2023). The government segment (represents ~29% of public sector loans) was the main growth driver for the public sector with a surge by 7.9% MoM (-8.5% in 2023), while the government institutions’ segment (represents ~65% of public sector loans) moved up 0.6% MoM (-0.2% in 2023). However, the semi-government institutions’ segment declined very marginally MoM (+23.9% in 2023).
The total private sector loans moved up 0.7% MoM (+4.9% in 2023) in December 2023. The services segment was the main driver for the private sector loan rise. Services (contributes ~32% to private sector loans) went up 2.0% MoM (+12.3% in 2023), while general trade (contributes ~21% to private sector loans) moved up 0.9% MoM (+8.6% in 2023), and Consumption & Others (contributes ~21% to private sector loans) gained 0.7% MoM (+8.4% in 2023). However, the Real Estate segment (contributes ~20% to private sector loans) declined 0.9% MoM (-7.3% in 2023) in December 2023. Outside Qatar loans went down by 1.2% MoM (-3.9% in 2023) during the month of December 2023.
Public sector deposits increased by 4.0% MoM (-1.6% in 2023) for the month of December 2023. Looking at segment details, the government institutions’ segment (represents ~56% of public sector deposits) rose by 5.5% MoM (-1.1% in 2023), while the government segment (represents ~28% of public sector deposits) increased by 2.8% MoM (-7.9% in 2023), and the semi-government institutions’ segment edged up 0.7% MoM (+9.8% in 2023) in December 2023.
Private sector deposits declined by 1.1% MoM (+1.3% in 2023) in December 2023. On the private sector front, the companies & institutions’ segment dropped by 3.2% MoM (-5.0% in 2023). However, the consumer segment edged up by 0.8% MoM (+7.7% in 2023) during December 2023.
While the non-resident deposits declined by 1.9% MoM (-7.0% in 2023) in December 2023. Qatar banking sector loan provisions to gross loans was at 4.0% in December 2023, compared to 3.9% in November 2023 and the banking sector liquid assets to total assets was at 31.6% in December 2023, compared to 31.4% in November 2023.
