File photo of Bank Street used for representation
Doha, Qatar: Qatar banking sector’s total assets declined 2.0% MoM (down 1.9% in 2023) in July 2023 to QR1.868 trillion. The total loan book went down 0.9% MoM (down 0.9% in 2023) and deposits dropped by 2.9% MoM (-7.1% in 2023) in the month of July 2023.
Both the Public and Private sectors pushed the overall credit lower. As deposits fell by 2.9% in July, the LDR increased to 134.1% vs. 131.5% in June 2023.
The overall loan book went down 0.9% in July 2023. Total public sector loans dropped by 1.9% MoM (-3.8% in 2023). The semi-government institutions’ segment fell by 27.7% MoM (-0.2% in 2023), while the government segment (represents ~28% of public sector loans) moved lower by 2.9% MoM (-14.1% in 2023). However, the government institutions’ segment (represents ~67% of public sector loans) loan book increased by 1.3% MoM (+1.0% in 2023).
Domestic private sector loans moved down by 0.5% MoM (+0.4% in 2023) in July 2023. General trade, real estate and services segments were the main drivers for the private sector loan decline. General trade (contributes ~21% to private sector loans) dropped by 2.0% MoM (+1.0% in 2023), while the real estate segment (contributes ~22% to private sector loans) declined by 1.3% MoM (-3.1% in 2023) and services (contributes ~30% to private sector loans) went down by 0.6% MoM (+1.1%).
However, consumption & others (contributes ~21% to private sector loans) increased by 1.7% MoM (+3.2% in 2023) in July 2023. Outside Qatar loans went down by 1.0% MoM (-1.9% in 2023) during the month of July 2023.
While the public sector deposits fell by 7.1% MoM (-13.4% in 2023) for the month of July 2023. Looking at segment details, the government segment (represents ~25% of public sector deposits) mainly dragged down the public sector with a fall by 15.5% MoM (-27.2% in 2023), while the government institutions’ segment (represents ~58% of public sector deposits) dropped by 5.1% MoM (-10.1% in 2023). However, the semi-government institutions’ segment moved up by 1.0% MoM (3.3% in 2023).
The private sector deposits declined by 1.2% MoM (-2.6% in 2023) in July 2023. On the private sector front, the companies & institutions’ segment went down by 2.1% MoM (-9.0% in 2023), while the consumer segment edged down by 0.3% MoM (+3.8% in 2023) during July 2023.
