File photo used for representation only.
Doha, Qatar: Qatar banking sector total assets increased 0.3% month-on-month (MoM) (down 1.6% in 2023) in August 2023 to reach QR1.874 trillion.
The banking sector total loan book moved up 0.2% MoM (down 0.7% in 2023) and deposits went down marginally MoM (-7.1% in 2023) in the month of August 2023. The Private sector pushed the overall credit higher. As deposits went down marginally in August, the LDR increased to 134.4% vs. 134.1% in July 2023.
The overall loan book moved up 0.2% in August 2023. Total private sector loans went up by 0.4% MoM (+0.8% in 2023) in August 2023. The services segment was the main driver for the private sector loan increase. Services (contributes ~30% to private sector loans) increased by 2.6% MoM (+3.8% in 2023), while General Trade (contributes ~21% to private sector loans) rose by 0.8% MoM (+1.8% in 2023) and Consumption & Others (contributes ~21% to private sector loans) moved up by 0.5% MoM (+3.8% in 2023). However, the Real Estate segment (contributes ~21% to private sector loans) dropped by 3.2% MoM (-6.1% in 2023) in August 2023.
Total public sector loans increased by 0.1% MoM (-3.6% in 2023). The government segment (represents ~28% of public sector loans) went up by 1.5% MoM (-12.8% in 2023), while the semi-government institutions’ segment gained 3.9% MoM (3.7% in 2023). However, the government institutions’ segment (represents ~67% of public sector loans) loan book declined by 0.7% MoM (+0.2% in 2023). Outside Qatar loans went down by 1.2% MoM (-3.0% in 2023) during the month of August 2023.
Non-resident deposits declined by 1.3% MoM (-7.8% in 2023) in August 2023, causing the overall marginal drop in banking sector deposits for the month.
Public sector deposits moved up by 0.9% MoM (-12.7% in 2023) for the month of August 2023. Looking at segment details, the government institutions’ segment (represents ~59% of public sector deposits) pulled up the overall public sector with an increase by 2.9% MoM (-7.5% in 2023), while the government segment (represents ~26% of public sector deposits) went up by 1.2% MoM (-26.3% in 2023). However, the semi-government institutions’ segment declined by 6.9% MoM (-3.8% in 2023) in August 2023.
Private sector deposits edged down by 0.1% MoM (-2.7% in 2023) in August 2023. On the private sector front, the consumer segment declined by 1.3% MoM (+2.4% in 2023). However, the companies & institutions’ segment increased by 1.4% MoM (-7.7% in 2023) during August 2023.
