Qatar banks post 24.51% year-on-year rise in provisions in February: QCB

The provisions towards expected credit loss grew slower (year-on-year) than the total provisions in Qatar's commercial lenders in February, according to the central bank data.The total provisions reported 24.51% year-on-year expansion to QR42.92bn, which is 2.3% of the total liabilities of the commercial banks in the review period, said the figures of the Qatar Central Bank.The provisions against specific loans/advances and expected credit loss together constituted 83.13% of the total provisions in February 2022.The provisions inside Qatar (in both local and foreign currency terms) reported a 30.12% year-on-year surge to QR35.51bn, about 83% of the total provisions in the banking sector in February this year.The provisions outside Qatar (in both local and foreign currency terms) was up 3.34% on a yearly basis to QR7.42bn, which was about 17% of the total provisions in the review period.Of the total provisions made by the commercial banks in February, as much as QR22.16bn was made against special loans/advances. Such provisions witnessed a 32.38% expansion year-on-year.The provisions for the domestic special loans/advances stood at QR17.32bn, which soared 42.55% year-on-year in February 2022 and those for the overseas special loans/advances witnessed a 5.45% yearly growth to QR4.84bn.Of the QR17.32bn provisions against domestic specific loans/advances in February, the central bank data found that QR16.78 was in local currency and the remaining QR0.55bn in foreign currency denomination.The provisions against expected credit loss reported 14.09% year-on-year growth to QR13.52bn in February this year. The provisions for expected credit loss inside the country registered a 18.82% year-on-year jump to QR11.87bn and the provisions for the expected credit loss outside the country nevertheless saw 11.83% shrinkage to QR1.64bn in the review period.Of the QR11.87bn provisions against expected credit loss in February, the QCB data said as much as QR11.68 was in local currency and the remaining in foreign currency denomination.The provisions towards interest/income in suspense amounted QR5.03bn, which grew 15.37% year-on-year in February 2022.In February this year, the provisions towards collective impairments amounted to QR600.72mn, which registered a 19.47% year-on-year growth in the review period.The other provisions stood at QR672.52mn at the end of February 2022 compared to QR653.8mn a year-ago period; while the provisions against specific contingent liabilities amounted to QR511.06mn in February this year compared to QR123.92mn the previous-year period.The provisions towards investment in real estate stood unchanged at QR103.41mn on a yearly basis in February 2022 and the provisions towards other investments amounted to QR323.79mn in February this year compared to QR138.36mn in the comparable period of 2021.