A robust double-digit growth in credit to the public sector and the rapid expansion in reserves helped Doha's commercial banks' assets rise more than 9% year-on-year in September, amidst relaxation in the Covid-19 related restrictions, according to the Qatar Central Bank (QCB).
Total assets of commercial banks stood at QR1.62tn with domestic assets constituting QR1.4tn or 86% of the total, and overseas assets at QR0.23bn or 14% of the total in the review period.
Total domestic assets were seen expanding 10.33% while the foreign assets had a muted little over 1% year-on-year growth in September 2020.
The commercial banks' total credit soared 11% year-on-year to QR1.11bn with domestic credit expanding 12.06% to QR1.03bn and overseas credit by about 2% to QR75.36bn in September this year.
The commercial banks' total credit to public sector witnessed about 16% year-on-year growth to QR349.98bn and that to the private sector by more than 9% to QR74.23bn; whereas those to non-banking financial institutions declined about 14% to QR14.03bn.
The total securities portfolio, which is the second largest component of the commercial banks' assets side, witnessed about 4% year-on-year decline to QR191.86bn in September 2020.
The domestic and overseas securities portfolio was seen declining more than 3% and 10% to QR173.78bn and QR18.08bn respectively in the review period.
The year-on-year expansion in the domestic assets of the commercial lenders at the end of September 30, 2020, was on a robust growth trajectory, especially in the case of credit, investments in associates and subsidiaries and other non-specified assets.
Of the total QR191.86bn total securities portfolio; debt (conventional) was to the extent of QR113.81bn, which fell more than 6% year-on-year; and sukuk (Islamic) QR73.81bn (0.3%).
The domestic debt fell more than 5% on a yearly basis to QR101.25bn and overseas debt by about 14% to QR12.56bn in September 2020.
The government debt fell more than 4% year-on-year to QR99.91bn and that of the banks by about 6% to QR11.22bn at the end of September 2020.
Of the total domestic sukuk, the government’s issuance amounted to QR68.36bn (down about 3%), while those from the banks stood at QR4.27bn (up 57%) during the review period.
The commercial banks’ claim on the central bank increased more than 53% year-on-year to QR83.01bn at the end of September 30, 2020, of which required reserve amounted to QR39.39bn that expanded more than 7% on a yearly basis.
The commercial banks' total claims on banks witnessed a marginal less than 1% year-on-year increase to QR142.82bn in September 2020. The domestic claims reported about 12% shrinkage to QR53.85bn; whereas overseas claims expanded more than 9% to QR88.96bn.
The commercial banks’ total investment in subsidiaries and associates amounted to QR44.41bn in September 2020, which, however, saw more than 2% fall year-on-year.
However, their domestic investments reported about 8% jump to QR6.68bn; while overseas investments were down 5% to QR37.23bn at the end of September 2020.
The commercial banks' cash and precious metals were valued at QR15.28bn at the end of September 2020, which grew about 14% year-on-year.
The banking sector’s other assets shot up more than 7% year-on-year to QR33.39bn and net fixed assets by more than 6% to QR7.39bn at the end of September this year.