The private and public sectors witnessed robust credit offtake, leading to Doha’s commercial banks’ assets expand in double digit year-on-year in July 2020 amidst Covid-19 challenges, according to the Qatar Central Bank (QCB) data.
Total assets of commercial banks stood at QR1.6tn with domestic assets constituting QR1.39tn, or 87%, of the total, and overseas assets at QR0.22bn, or 13% of the total.
The domestic assets of the commercial lenders witnessed more than 12% year-on-year expansion at the end of July 31, 2020 on a robust growth trajectory especially in the case of credit, securities portfolio, investments in associates and subsidiaries and other non-specified assets. In the case of overseas assets, the commercial banks witnessed a marginal 0.23% growth.
Total credit of the commercial banks grew about 11% year-on-year to QR1.09tn at the end of review period. They constituted about 68% of the total assets of the banks.
The commercial banks’ domestic credit expanded more than 12% year-on-year to QR1.01trn; whereas overseas credit fell about 7% to QR72.74bn in the review period.
Total private sector credit registered about 11% year-on-year expansion to QR729.69bn, or 67%, of the total credit this July, and public sector credit by about 11% to QR341.9bn, while non-banking finance credit declined about 4% to QR13.98bn in the review period.
The commercial banks' total securities portfolio amounted to QR195.51bn, which saw about 7% year increase in July this year. Domestic portfolio was seen growing at 8% to QR177.29bn and overseas portfolio by a marginal 0.22% to QR18.22bn.
Of the total QR195.51bn total securities portfolio; debt (conventional) was to the extent of QR115.86bn, which rose about 8% year-on-year; and sukuk (Islamic) QR75.39bn (6%).
The domestic debt grew more than 9% on a yearly basis to QR103.32bn or 89% of the total debt in July 2020, while the overseas debt fell 2% to QR12.64bn.
The government debt grew about 14% year-on-year to QR96.68bn; whereas that of the banks declined 4% to QR5.49bn at the end of July 2020.
Of the QR75.39bn domestic sukuk, the government’s issuance amounted to QR68.22bn (up more than 4%) and those from the banks stood at QR3.39bn (46%) during the review period.
The commercial banks’ claim on the central bank increased about 32% year-on-year to QR82.96bn at the end of July 31, 2020, of which required reserve amounted to QR39.46bn that expanded 7% on a yearly basis.
The commercial banks' total claims on banks witnessed more than 5% year-on-year increase to QR131.07bn in July 2020. The domestic and overseas claims stood at QR51.16bn and QR79.91bn; registering 4% and 6% growth respectively.
The commercial banks’ total investment in subsidiaries and associates amounted to QR44.87bn in July 2020, which however saw more than 1% fall year-on-year.
However, their domestic investments reported more than 8% jump to QR6.71bn; while overseas investments were down 3% to QR38.16bn at the end of July 2020.
The commercial banks' cash and precious metals were valued at QR16.42bn at the end of July 2020, which grew more than 16% year-on-year.
The banking sector’s other assets shot up more than 29% year-on-year to QR37.59bn and net fixed assets by about 7% to QR7.45bn at the end of July this year.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
QSE witnesses strong buying interests from local, foreign retail investors
Ambassador of Qatar inaugurates QBA session on SPIEF
500 building permits issued in April: PSA
Qatar capital market seen set for advent of REITs to enhance investment portfolio
Qatar Chamber official highlights private sector resiliency against Covid-19 impact
Amazon.com borrows $18.5bn it doesn’t need in new debt sale
Indian oil refiners cut output and imports as pandemic hits demand
Saudi seen supplying full June crude volumes to most of its buyers in Asia
IBM launches new cloud and AI services in bid to modernise business