Qatar banking sector total assets remained flat, month-on-month (MoM) in September and stood at QR1.78tn, QNB Financial Services (QNBFS) said in an update on Thursday.
The loan book declined by 0.7% MoM (+7.2% year to date – YTD) while deposits increased by 2.1% MoM (+7.7% YTD) in September, QNBFS said.
Loans declined by 0.7% during September to QR1,210.5bn, mainly due to a drop by 4.5 % from the public sector.
Loans grew by 7.2% YTD for 2021, compared to a growth of 8.6% in 2020. Loans grew by an average 8.5% over the past five years (2016 -2020).
Public sector pushed the credit downwards (down 4.5% MoM in September).
The overall loan book declined by 0.7% in September 2021. Total domestic public sector loans went down by 4.5% MoM (+10% YTD). The government segment’s loan book declined by 11.9% MoM (+15.4% YTD 2021).
However, the government institutions’ segment (representing 55% of public sector loans) increased by 1.2% MoM (+7.8% YTD), while the semi-government institutions’ segment went up by 2.5% MoM (-6% YTD).
Private sector loans gained by 1.4% MoM and are up 7.4% YTD. Services segment mainly contributed toward the private sector loan growth for the month of September 2021. Services (contributes 28% to private sector loans) increased by 3.2% MoM (+12.6% YTD).
Real estate (contributes nearly 22% to private sector loans) went up by 0.7% MoM (+5.8% YTD).
General trade (contributes nearly 21% to private sector loans) moved up by 1.6% MoM (+7.7% YTD).
Consumption and others' segment (contributes 21% to private sector loans) increased by 0.3% MoM (+0.9% YTD) during September.
As deposits went up by 2.1% in September, the loan-to-deposit ratio (LDR) went down to 124.1% compared to 127.6% in August.
Deposits increased by 2.1% in September to reach QR975.5bn; the growth was mainly due to an increase in public sector deposits by 4.3%.
Deposits grew by 7.7 % YTD for 2021, compared to a growth of 6.6 % in 2020. Deposits grew by an average 7% over the past five years (2016 - 2020).
Public sector deposits increased by 4.3% MoM (+11.4% YTD) for the month of September 2021 driving the overall deposits growth.
Looking at segment details, the government institutions’ segment (represents nearly 56% of public sector deposits) went up by 7.8% MoM (+5.8% YTD 2021). The semi-government institutions’ segment declined by 2.4% MoM (+14% YTD 2021).
The government segment moved up by 1.3% MoM (+22% YTD). Non-resident deposits increased by 1.7% MoM (+15.4% YTD 2021). Private sector deposits went up by 0.7% MoM (+0.6% YTD 2021).
On the private sector front, the consumer segment moved down by 0.2% MoM (+2.5% YTD) while the companies and institutions’ segment went up by 1.9% MoM (-1.7% YTD 2021).