Total Qatar bank assets reach QR1.98tn in March, pushed higher by rise in foreign assets: QNBFS

Qatari banking sector's total assets went up by 0.8% m-o-m (up 0.9% in 2024) in March to reach QR1.98tn, pushed higher by increase in foreign assets, QNB Financial Services (QNBFS) has said in a report.The total assets growth in March was mainly due to a rise by 3.4% in foreign assets. Total assets were up by 0.9% so far this year in 2024, compared to a growth of 3.4% in 2023.Assets grew by an average 6.8% over the past five years (2019-2023), QNBFS said.Liquid assets to total assets went up to 31.2% in March, compared to 30.6% in February.The banking sector's loans edged down by 0.2% during March to QR1,310.1bn; the slide was mainly due to a drop by 1.3% in the public sector.Loans increased by 1.7% in 2024, compared to a growth of 2.5% in 2023; loans grew by an average 6.5% over the past five years (2019-2023)Loan provisions to gross loans was at 3.9% in March and at 3.8% in February, QNBFS said.Deposits moved up by 0.2% during March to reach QR1,031.0bn and the gain was mainly due to an increase by 3.9% in non-resident deposits.Deposits went up by 4.6% in 2024, compared to a decline by 1.3% in 2023. Deposits grew by an average 4.1% over the past five years (2019-2023), QNBFS noted.Loans to deposits ratio moved lower during the month to 127.1% (as at March). Loans edged down by 0.2% in March to QR1,310.1bn, while deposits moved up 0.2% in March to reach QR1,031bn.The public sector pushed the overall credit lower. As deposits gained in March, the LDR went down to 127.1% vs. 127.6% in February.An Analyst told Gulf Times: "The key highlights for March 2024 are the increase in total assets, which was pushed higher by the increase in foreign assets as due from banks abroad made significant gains. The build-up in overall deposits continued in March as non-resident deposits surged by 3.9% during the month."Even as the overall credit facilities moved lower in March, mainly due to cutback in short-term funding by the government, the private sector credit showed promise though the gains in the services sector, which is likely due to the strengthening tourism sector.”