Assets of Qatar's commercial banks grew about 10% year-on-year growth this November, mainly on faster expansion in domestic assets, as the country’s various sectors started functioning in full steam after the government lifted the Covid-19 restrictions.
The latest report from the Qatar Central Bank (QCB) suggests that the total assets of commercial banks stood at QR1.65tn with domestic assets constituting QR1.42tn or 86% of the total, and overseas assets at QR0.23tn or 14% of the total in the review period.
Total domestic assets were seen expanding 10.41% and foreign assets had a slower 4.53% year-on-year growth in November 2020.
The year-on-year expansion in the domestic assets of the commercial lenders in November 2020 has been due to a robust growth trajectory especially in credit, investments in associates and subsidiaries and other non-specified assets.
The commercial banks' total credit soared 9.74% year-on-year to QR1.13bn with domestic credit expanding 10.48% to QR1.05bn and overseas credit by a marginal 0.33% to QR75.85bn in November.
The commercial banks' total credit to public sector witnessed a more than 16% year-on-year growth to QR371.77bn and that to the private sector by more than 7% to QR740.23bn; whereas those to non-banking financial institutions declined more than 3% to QR14.04bn.
The commercial banks' credit growth seemingly supports the Qatar Financial Centre's purchasing managers' index that said the country's non-energy private sector economy continued to expand towards the end of 2020.
The total securities portfolio, which is the second largest component of the commercial banks' assets side, however witnessed about a 5% year-on-year decline to QR197.09bn in November 2020.
The domestic securities portfolio was seen declining about 6% to QR177.4bn; whereas overseas securities portfolio grew about 4% to QR19.69bn in the review period.
Of the total QR197.09bn total securities portfolio; debt (conventional) was to the extent of QR128.64bn, which grew about 9% year-on-year; and sukuk (Islamic) QR73.73bn, which was down more than 1% year-on-year in the review period.
The domestic debt shot up more than 11% on a yearly basis to QR115.67bn, while overseas debt fell about 10% to QR12.97bn in November 2020.
The government’s total debt fell more than 4% year-on-year to QR98.79bn with domestic debt declining 4% to QR90.67bn and foreign debt by more than 7% to QR8.17bn in the review period.
The banks’ total debt was down more than 1% year-on-year to QR9.19bn in November this year. The banks’ domestic debt witnessed more than 8% growth to QR5.76bn; whereas overseas debt declined more than 14% to QR3.43bn.
Of the total domestic sukuk, the government’s issuance amounted to QR68.13bn (down about 3%), while those from the banks stood at QR4.19bn (up 38%) during the review period.
The commercial banks’ claim on the central bank increased more than 39% year-on-year to QR74.17bn in November, of which required reserve amounted to QR39.54bn that expanded about 6% on a yearly basis.
The commercial banks' total claims on banks witnessed about 7% year-on-year increase to QR141.14bn this November. The overseas claims reported more than a 15% expansion to QR88.53bn; whereas domestic claims were down 6% to QR52.61bn in the review period.
The commercial banks’ total investment in subsidiaries and associates amounted to QR44.26bn in November 2020, which saw about 3% shrinkage year-on-year.
However, their domestic investments reported about an 8% jump to QR6.68bn; while overseas investments were down 5% to QR37.58bn at the end of November 2020.
The commercial banks' cash and precious metals were valued at QR15.08bn in November 2020, which grew about 16% year-on-year.
The commercial banks’ net fixed assets were up more than 6% year-on-year to QR7.37bn in November 2020.
The banking sector’s other assets shot up about 12% year-on-year to QR36.01bn at the end of November this year.
Total domestic assets were seen expanding 10.41% and foreign assets had a slower 4.53% year-on-year growth in November 2020.
The year-on-year expansion in the domestic assets of the commercial lenders in November 2020 has been due to a robust growth trajectory especially in credit, investments in associates and subsidiaries and other non-specified assets.
The commercial banks' total credit soared 9.74% year-on-year to QR1.13bn with domestic credit expanding 10.48% to QR1.05bn and overseas credit by a marginal 0.33% to QR75.85bn in November.
The commercial banks' total credit to public sector witnessed a more than 16% year-on-year growth to QR371.77bn and that to the private sector by more than 7% to QR740.23bn; whereas those to non-banking financial institutions declined more than 3% to QR14.04bn.
The commercial banks' credit growth seemingly supports the Qatar Financial Centre's purchasing managers' index that said the country's non-energy private sector economy continued to expand towards the end of 2020.
The total securities portfolio, which is the second largest component of the commercial banks' assets side, however witnessed about a 5% year-on-year decline to QR197.09bn in November 2020.
The domestic securities portfolio was seen declining about 6% to QR177.4bn; whereas overseas securities portfolio grew about 4% to QR19.69bn in the review period.
Of the total QR197.09bn total securities portfolio; debt (conventional) was to the extent of QR128.64bn, which grew about 9% year-on-year; and sukuk (Islamic) QR73.73bn, which was down more than 1% year-on-year in the review period.
The domestic debt shot up more than 11% on a yearly basis to QR115.67bn, while overseas debt fell about 10% to QR12.97bn in November 2020.
The government’s total debt fell more than 4% year-on-year to QR98.79bn with domestic debt declining 4% to QR90.67bn and foreign debt by more than 7% to QR8.17bn in the review period.
The banks’ total debt was down more than 1% year-on-year to QR9.19bn in November this year. The banks’ domestic debt witnessed more than 8% growth to QR5.76bn; whereas overseas debt declined more than 14% to QR3.43bn.
Of the total domestic sukuk, the government’s issuance amounted to QR68.13bn (down about 3%), while those from the banks stood at QR4.19bn (up 38%) during the review period.
The commercial banks’ claim on the central bank increased more than 39% year-on-year to QR74.17bn in November, of which required reserve amounted to QR39.54bn that expanded about 6% on a yearly basis.
The commercial banks' total claims on banks witnessed about 7% year-on-year increase to QR141.14bn this November. The overseas claims reported more than a 15% expansion to QR88.53bn; whereas domestic claims were down 6% to QR52.61bn in the review period.
The commercial banks’ total investment in subsidiaries and associates amounted to QR44.26bn in November 2020, which saw about 3% shrinkage year-on-year.
However, their domestic investments reported about an 8% jump to QR6.68bn; while overseas investments were down 5% to QR37.58bn at the end of November 2020.
The commercial banks' cash and precious metals were valued at QR15.08bn in November 2020, which grew about 16% year-on-year.
The commercial banks’ net fixed assets were up more than 6% year-on-year to QR7.37bn in November 2020.
The banking sector’s other assets shot up about 12% year-on-year to QR36.01bn at the end of November this year.