Qatar’s banking sector has seen a pickup in loans with total credit moving up 0.3% to reach QR1.26tn in June, latest data provided by QNB Financial Services (QNBFS) has shown.
Deposits with Qatari banks edged up by 0.1% to reach QR955.1bn, while their total assets increased 1.4% month-on-month (up 0.05% in 2023) in June to reach QR1.906tn, QNBFS said.
An analyst told Gulf Times Tuesday that the banking sector loan book continued to rise and was pushed higher by both the public and private sectors.
“From the public sector it was the semi-government institutions that rose significantly by 42.9% in June this year, while from the private sector it was a 1.3% growth in personal consumption,” the analyst noted.
Loans gain in June, according to QNBFS was mainly due to a rise by 0.6% in the public sector and 0.2% in the private sector.
Loans have edged up marginally by 0.01% so far in 2023, compared to a growth of 3.3% in 2022.
Bank loans grew by an average 6.7% over the past five years (2018-2022).
Qatari bank loan provisions to gross loans stood at 3.8% for both May and June this year.
In terms of loans, the semi-government institutions’ segment shot up 42.9% M-o-M (38.1% in 2023), while the government segment (represents 28% of public sector loans) moved higher by 0.7% M-o-M (-11.5% in 2023).
However, the government institutions’ segment (represents 65% of public sector loans) loan book declined by 2.5% M-o-M (-0.3% in 2023).
Deposits increase in June this year was mainly due to a rise by 1.5% in non-resident deposits, QNBFS noted.
Deposits have declined by 4.4% in 2023, compared to a growth of 2.6% in 2022. Deposits grew by an average 4% over the past five years (2018-2022).
Loans to deposits ratio moved to 131.5% in June this year, QNBFS noted.
Non-resident deposits increased by 1.5% M-o-M (-7.1% in 2023) in June, partly supporting the overall deposits increase for the month.
Private sector deposits edged up by 0.1% M-o-M (-1.4% in 2023) in June 2023.
On the private sector front, the consumer segment increased by 0.3% M-o-M (+4.1% in 2023), while the companies and institutions’ segment declined by 0.2% M-o-M (-7.0% in 2023) during June.
Public sector deposits went down by 0.7% M-o-M (-6.8% in 2023) for the month of June 2023.
Looking at segment details, the government institutions’ segment (represents 57% of public sector deposits) mainly pulled down the public sector, with a drop by 6.0% M-o-M (-5.3% in 2023), while the government segment (represents 28% of public sector deposits) moved lower by 2% M-o-M (-13.8% in 2023).
However, the semi-government institutions’ segment increased significantly by 29.7% M-o-M (2.3% in 2023) in June 2023.
Total assets rise in June was mainly due to an increase by 5.3% in foreign assets and 0.5% in domestic assets, QNBFS noted.
Total assets are marginally up by 0.05% so far in 2023, compared to a growth of 4.2% in 2022.
Assets grew by an average 6.9% over the past five years (2018-2022)
Liquid assets to total assets was at 31.1% in June this year, compared to 30.4% in May, QNBFS said.
