Bank loan growth in Qatar rose to 19.4% year-on-year in November 2015 from 16.5% in October, QNB Economics has said in a report.
Loans to the public sector grew by 6.8% year-on-year and lending to the private and foreign sectors also grew by 23.6% and 41.9% respectively.
“We forecast bank lending to continue growing increasingly driven by project lending and the expanding population,” QNB Economics said in its “Monthly Monitor”.
Asset growth rose to 12.3% in November 2015 from 10.7% in October, it said.
Foreign assets grew by 1.9% year-on-year, driven by expansion in credit (41.9%); while domestic assets grew by 16.6%, also driven by the growth in domestic credit (17%).
“We expect growth in bank assets to reach 10.5% in 2015, increasingly driven by project lending and population growth,” QNB said. However, bank deposits year-on-year growth fell to 5.8% in November 2015 from 6.4% in October.
Public sector deposits contracted by 9.9%; private sector deposits and non-resident deposits grew by 11.9% and 50.9% respectively.
“We expect deposits to continue growing on strong population growth,” QNB Economics said.
Overnight interbank rates were stable at 1.17% in November 2015 as compared with 1.21% in October.
The 1-week interbank rate rose by 17 basis points to 1.36% in November, the 1-month interbank rate rose by 20 basis points to 1.45% in November and the 1-year interbank rate was stable at 1.9%.
Broad money (M2) growth rose to 3.4% in December from 3.1% in November.
The rise was mostly attributable to the pickup in growth of quasi money from 3.5% in November to 3.9% in December, and growth in M1 also rose to 2.1% in December from 1.9% in November.
“We expect M2 to continue growing as strong population growth is projected to drive the expansion in deposits,” QNB Economics said.
Qatar’s population grew by 8.9% year-on-year in January to reach 2.42mn, driven by the steady infrastructure spending.
The male population rose by 9.4% year-on-year, reaching 1.85mn in December while the female population increased by 7.4% year-on-year over the same period, reaching 0.57mn.
“We expect Qatar’s on-going investment programme to continue to attract expatriates, resulting in overall population growth of 4.1% in 2016,” QNB Economics said.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Milaha gets 'ISO 27001' certification for quality of its information security management system
Qatar Chamber participates in GCC Chambers executive committee meeting
Qatar witnesses expansion in production of refined petroleum, plastics products
Qicca kicks-off virtual ‘Qualification and Preparation of the Arbitrators Programme’
QIIB bags four awards from REDmoney for successful global issuances
Qatar shares settle marginally lower below 10,000 level
QFC offers 'generous' incentives for global firms looking to make Doha their expansion hub
QDB opens ‘Derwaza Store’ for microenterprises in Doha Festival City
Nakilat net profit jumps nearly 24% to QR900mn in Q3