Qatar banking sector total assets increase 0.9% in 2022 to QR1.845tn in November

The Qatari banking sector's total assets increased by 0.9% MoM (up 0.9% in 2022) to reach QR1.845tn in November 2022, according to QNB Financial Services (QNBFS).Total loan book went up by 0.3% MoM (up 0.5% in 2022) and deposits moved up by 0.4% MoM (-1.6% in 2022) in November, QNBFS ‘Qatar Monthly Key Banking Indicators’ showed Monday.The private sector pushed the overall credit higher (up 0.8% MoM in November). As deposits gained by 0.4% in November, the LDR edged down to 127.6% vs 127.8% in October 2022.The overall loan book went up by 0.3% in November to reach QR1,222.9bn.Loans increase in November was mainly due to a rise by 0.8% from the private sector (+5.2% in 2022).Loans have gone up by 0.5% in 2022, compared to a growth of 7.8% in 2021. Loans grew by an average 7.6% over the past five years (2017-2021).The real estate, services and general trade segments were the main contributors toward the private sector loan growth for the month of November.The real estate segment (contributes nearly 22% to private sector loans) increased by 2.0% MoM (+8.7% in 2022).Services (contributes nearly 29% to private sector loans) went up by 0.7% MoM (+8.5% in 2022).General trade (contributes nearly 20% to private sector loans) gained 0.9% MoM (0.8% in 2022), while consumption and others (contributes nearly 21% to private sector loans) moved up by 0.2% MoM (+5.1% in 2022) during November.Outside Qatar loans declined by 2.9% MoM (-10.4% in 2022) during November.Domestic public sector loans went down slightly by 0.2% MoM (-6.9% in 2022). The government segment (represents nearly 30% of public sector loans) dropped by 0.9% MoM (-25.5% in 2022), while the semi-government institutions’ segment declined by 1.1% MoM (+1.1% in 2022).However, the government institutions’ segment (represents nearly 65% of public sector loans) loan book increased by 0.2% MoM (+4.5% in 2022).Deposits went up by 0.4% during November to reach QR958.2bn, QNBFS noted.Deposits gain in November was due to a 2.3% increase in private sector deposits. Deposits have gone down by 1.6% in 2022, compared to a growth of 7.6% in 2021. Deposits grew by an average 6.1% over the past five years (2017-2021)Private sector deposits moved higher by 2.3% MoM (+11.9% in 2022), pushing up the overall Qatar banking sector deposits for the month, QNBFS noted.On the private sector front, the companies and institutions segment rose 4.6% MoM (+23.8% in 2022). Meanwhile, the consumer segment went down slightly by 0.1% MoM (+1.9% in 2022) during November.Public sector deposits moved up marginally by 0.1% MoM (+10.2% in 2022) for the month of November 2022. Looking at segment details, the semi-government institutions’ segment had a huge jump by 15.9% MoM (+28.1% in 2022).However, the government institutions’ segment (represents nearly 60% of public sector deposits) declined by 3.1% MoM (+25.8% in 2022), while the government segment (represents nearly 25% of public sector deposits) edged lower by 0.1% MoM (-20.1% in 2022).Non-resident deposits continued its sharp fall for the year and fell by 3.3% MoM (-33.3% in 2022) in November 2022.An analyst said: "Assets increased by 0.9% mainly as domestic assets (predominantly domestic credit and domestic investments) increased by 1% and foreign assets (largely due from banks abroad and investments abroad) went up by 1.4%."Loans went up by 0.3% mainly due to the private sector (real estate up by 2.0%, services up by 0.7% and general trade up by 0.9%). Deposits gained by 0.4% mainly due to the private sector (companies and institutions up by 4.6%).”