Qatar banks' total assets increase 8.6% to QR1.827tn in 2021: QNB Financial Services

The loan book increased by 0.2% MoM (+7.8% YTD) and deposits went up by 1.1% MoM (+7.6% YTD) last month. Loans increased by 0.2% during December 2021 to reach QR1,216.4bn. Loan increase last month was mainly due to a gain by 0.5% from the private sector.Loans grew by 7.8% in 2021, compared to a growth of 8.6% in 2020. Loans grew by an average 7.6% over the past five years (2017-2021), QNBFS said in its latest ‘Qatar Monthly Banking Sector Update’. As deposits went up by 1.1% in December, the loan-to-deposit ratio (LDR) went down to 124.9% vs. 125.9% in November. Deposits went up by 1.1% during December 2021 to reach QR974.1bn.Deposits gain last month was mainly due to an increase in public sector deposits by 1.9%.Deposits grew by 7.6% in 2021, compared to a growth of 6.6% in 2020. Deposits grew by an average 6.1% over the past five years (2017-2021).Public sector deposits went up by 1.9% MoM (+9.6% YTD) in December 2021 resulting in the overall gain in deposits. Looking at segment details, QNBFS noted the government segment (represents nearly 35% of public sector deposits) surged up by 21.4% MoM (+35.2% YTD). The government institutions’ segment (represents nearly 52% of public sector deposits) went down by 5.6% MoM (-2.8% in 2021). The semi-government institutions’ segment declined by 8.1% MoM (+11% in 2021). Non-resident deposits increased by 1.1% MoM (+14.5% in 2021). Private sector deposits went up by 0.4% MoM (+1.9% in 2021). On the private sector front, companies and institutions’ segment went up by 1.1% MoM (+2.5% in 2021) while the consumer segment moved down by 0.1% MoM (+1.5% in 2021). The overall loan book increased by 0.2% last month, QNBFS noted. Private sector loans gained by 0.5% MoM and are up 9.5% in 2021. Services and consumption and others segment mainly contributed toward the private sector loan growth for the month of December 2021. Services (contributes nearly 28% to private sector loans) increased by 0.8% MoM (+15.8% in 2021). Consumption and others segment (contributes nearly 21% to private sector loans) increased by 0.9% MoM (+3.1% in 2021). Real estate (contributes nearly 21% to private sector loans) went up marginally MoM (+5.4% in 2021). However, general trade (contributes nearly 21% to private sector loans) declined slightly by 0.1% MoM (+11.1% YTD) during the month of December 2021. Total domestic public sector loans went down by 0.1% MoM (+7.6% in 2021). The government segment’s loan book declined by 0.6% MoM (+4% in 2021) while the semi-government institutions’ segment also moved down by 0.6% MoM (-1.9% in 2021). However, the government institutions’ segment (represents nearly 57% of public sector loans) went up by 0.2% MoM (+11% in 2021), QNBFS said.