Business
Qatar banking sector loan book rises 0.9% to QR1,361.5bn in October
December 04, 2024 | 09:45 PM
Qatar's banking sector loan book increased by 0.9% month-on-month (m-o-m), up 5.7% so far this year, according to QNB Financial Services (QNBFS).Deposits moved down 0.8% m-o-m, up 5.3% so far this year, as of October, QNBFS said in its latest 'Qatar Monthly Key Banking Indicators'.With loans rising and deposits going down during October, the loans to deposits ratio (LDR) went up to 131.1%, compared to 128.9% in September 2024.Loans increased by 0.9% during October to reach QR1,361.5bn. The loans gain in October was mainly due to rises by 2.3% in the public sector and 0.3% in the private sector.Loans went up by 5.7% in 2024, compared to a growth of 2.5% in 2023; growing by an average 6.5% over the past five years (2019-2023). Loan provisions to gross loans stood at 4.2% both in September and October of this year.Loan provisions to gross loans stood at 4.2% as of October. Loan provisions have increased from 2.3% (in 2019) to 4% in 2023 and 4.2% (as of October) as banks have been provisioning for Stage 2 and Stage 3 loans mainly emanating from contracting and real estate sectors.According to QNBFS, deposits moved down by 0.8% during October to QR1,038.4bn.The deposits decline in September was mainly due to drops by 2.1% in public sector deposits and 1.8% in non-resident deposits.Deposits increased 5.3% 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).Total assets of commercial banks in Qatar declined by 0.9% during October to QR2.007tn. The drop was mainly due to a decrease by 4.1% in foreign assets and by 9.5% in reserves.Total assets were up by 1.9% 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).Liquid assets to total assets moved lower to 29.3% in October, compared to 30.3% in September, QNBFS noted.An analyst told Gulf Times, "The key highlight for the month of October is the increase in the overall loan book by 0.9%, pushed up mainly by the 2.3% rise in public sector loans, in particular, the government segment gain by 7.8%. This is because the government overdrafts increased, which could indicate short-term funding needs for the government."Total assets decline was mainly triggered by a drop in due from banks both foreign and domestic. Deposits fall mainly came from decreases in government institutions deposits and non-resident deposits.”
December 04, 2024 | 09:45 PM