Doha, Qatar: Qatar banking sector total assets moved up by 0.2% MoM (up 3.4% in 2023) in January 2024 to reach QR1.974 trillion, QNB Financial Services (QNBFS), has said in its monthly banking sector update.
The banking sector total loan book increased by 2.5% MoM (up 2.5% in 2023), while deposits went up 2.9% MoM (-1.3% in 2023) in the month of January 2024. The public sector pushed the overall credit higher. As deposits gained in January, the LDR went down to 130.1% vs. 130.6% in December 2023.
The overall loan book soared 2.5% in January 2024. Total public sector loans increased 6.5% MoM (-1.6% in 2023). The government segment (represents ~31% of public sector loans) was the main growth driver for the public sector with a spike of 16.0% MoM (-8.5% in 2023), while the government institutions’ segment (represents ~63% of public sector loans) went up 2.8% MoM (-0.2% in 2023), and the semi-government institutions’ moved up 0.6% MoM (+23.9% in 2023).
Total private sector loans increased 1.0% MoM (+4.9% in 2023) in January 2024. The consumption & others and general trade were the main drivers for the private sector loan rise. Consumption & others (contributes ~21% to private sector loans) climbed up 1.8% MoM (+8.4% in 2023), while general trade (contributes ~21% to private sector loans) went up 1.5% MoM (+8.6% in 2023), services (contributes ~31% to private sector loans) edged up 0.4% MoM (+12.3% in 2023), and the real estate segment (contributes ~20% to private sector loans) gained 0.9% MoM (-7.3% in 2023) in January 2024. However, Outside Qatar loans moved down by 0.9% MoM (-3.9% in 2023) during the month of January 2024.
Public sector deposits increased by 5.3% MoM (-1.6% in 2023) for the month of January 2024. Looking at segment details, the government segment (represents ~31% of public sector deposits) shot up by 14.3% MoM (-7.9% in 2023), while the government institutions’ segment (represents ~55% of public sector deposits) rose by 3.2% MoM (-1.1% in 2023). However, the semi-government institutions’ segment declined by 3.4% MoM (+9.8% in 2023) in January 2024.
Private sector deposits gained 1.6% MoM (+1.3% in 2023) in January 2024. On the private sector front, the consumer segment went up by 2.1% MoM (+7.7% in 2023), while the companies & institutions’ segment moved up by 1.0% MoM (-5.0% in 2023).
The non-resident deposits moved higher by 1.5% MoM (-7.0% in 2023) in January 2024. Qatar banking sector loan provisions to gross loans was at 4.0% in both January 2024 and December 2023. While the banking sector liquid assets to total assets was at 30.6% in January 2024, compared to 31.6% in December 2023.
