Total assets of Qatar banking sector increased by 0.4% month-on-month (MoM) by 0.4% this year up to September to reach QR1.835tn, QNB Financial Services (QNBFS) has said in a report.
The sector’s total loan book declined by 0.4% MoM (-0.2% in 2022) in September to QR1,213.6bn and deposits went down by 0.8% MoM (-0.9% in 2022) in the same month to QR965.1bn.
Loans decrease in September was mainly due to a drop by 2.1% from the public sector. Deposits decline that month was due to a contraction both in non-resident and public sector deposits, QNBFS noted.
The public sector mainly caused the credit decline (down 2.1% MoM in September).
As deposits moved down by 0.8% in September, the loans to deposits ratio (LDR) rose to 125.8% compared with 125.2% in August.
Domestic public sector loans moved lower by 2.1% MoM (-6.5% in 2022) in September.
The government segment (represents nearly 31% of public sector loans) fell by 6.8% MoM (-23.7% in 2022), while the semi-government institutions’ segment dropped by 7.6% MoM (+2.2% in 2022).
However, the government institutions’ segment (represents nearly 64% of public sector loans) loan book increased by 0.8% MoM (+3.9% in 2022).
Total private sector loans moved up by 0.5% MoM (+3.7% in 2022) in September.
The services segment and real estate mainly contributed toward the private sector loan growth for September. Services (contributes nearly 29% to private sector loans) increased by 0.7% MoM (+5.4% in 2022).
The real estate segment (contributes nearly 21% to private sector loans) went up by 0.7% MoM (+5.7% in 2022).
General trade (contributes nearly 21% to private sector loans) gained 0.5% MoM (+1.1% in 2022), while consumption and others (contributes nearly 22% to private sector loans) moved down marginally by 0.01% MoM (+4.5% in 2022) during September. Outside Qatar loans went down by 1.8% MoM (-8.9% in 2022) during September.
Public sector deposits declined by 1.3% MoM (+12.5% in 2022) for September, resulting in the overall drop in the Qatar banking sector deposits.
Looking at segment details, the government segment (represents nearly 27% of public sector deposits) fell by 15.1% MoM (-13.5% in 2022).
However, the government institutions’ segment (represents nearly 58% of public sector deposits) moved up by 5.1% MoM (+23.7% in 2022), while the semi-government institutions’ segment went up by 4.0% MoM (+37.1% in 2022).
Private sector deposits increased by 0.5% MoM (+7.9% in 2022), QNBFS said.
On the private sector front, companies and institutions’ segment went up by 1.0% MoM (+14.4% in 2022), while the consumer segment rose marginally by 0.01% MoM (+2.4% in 2022). However, non-resident deposits continued its downward spiral and went down by 2.8% MoM (-27.4% in 2022) in September 2022, QNBFS noted.
An analyst told Gulf Times that “both the drops relate directly to the government.”
“On the Loans side we can see that government overdrafts have come down, which could mean they stopped using short-term funding. On the deposits side again it could be that government is drawing down on its deposits to make payments related to 2022 FIFA World Cup. I think either way the government has a lot of flexibility in funding,” the analyst added.
The sector’s total loan book declined by 0.4% MoM (-0.2% in 2022) in September to QR1,213.6bn and deposits went down by 0.8% MoM (-0.9% in 2022) in the same month to QR965.1bn.
Loans decrease in September was mainly due to a drop by 2.1% from the public sector. Deposits decline that month was due to a contraction both in non-resident and public sector deposits, QNBFS noted.
The public sector mainly caused the credit decline (down 2.1% MoM in September).
As deposits moved down by 0.8% in September, the loans to deposits ratio (LDR) rose to 125.8% compared with 125.2% in August.
Domestic public sector loans moved lower by 2.1% MoM (-6.5% in 2022) in September.
The government segment (represents nearly 31% of public sector loans) fell by 6.8% MoM (-23.7% in 2022), while the semi-government institutions’ segment dropped by 7.6% MoM (+2.2% in 2022).
However, the government institutions’ segment (represents nearly 64% of public sector loans) loan book increased by 0.8% MoM (+3.9% in 2022).
Total private sector loans moved up by 0.5% MoM (+3.7% in 2022) in September.
The services segment and real estate mainly contributed toward the private sector loan growth for September. Services (contributes nearly 29% to private sector loans) increased by 0.7% MoM (+5.4% in 2022).
The real estate segment (contributes nearly 21% to private sector loans) went up by 0.7% MoM (+5.7% in 2022).
General trade (contributes nearly 21% to private sector loans) gained 0.5% MoM (+1.1% in 2022), while consumption and others (contributes nearly 22% to private sector loans) moved down marginally by 0.01% MoM (+4.5% in 2022) during September. Outside Qatar loans went down by 1.8% MoM (-8.9% in 2022) during September.
Public sector deposits declined by 1.3% MoM (+12.5% in 2022) for September, resulting in the overall drop in the Qatar banking sector deposits.
Looking at segment details, the government segment (represents nearly 27% of public sector deposits) fell by 15.1% MoM (-13.5% in 2022).
However, the government institutions’ segment (represents nearly 58% of public sector deposits) moved up by 5.1% MoM (+23.7% in 2022), while the semi-government institutions’ segment went up by 4.0% MoM (+37.1% in 2022).
Private sector deposits increased by 0.5% MoM (+7.9% in 2022), QNBFS said.
On the private sector front, companies and institutions’ segment went up by 1.0% MoM (+14.4% in 2022), while the consumer segment rose marginally by 0.01% MoM (+2.4% in 2022). However, non-resident deposits continued its downward spiral and went down by 2.8% MoM (-27.4% in 2022) in September 2022, QNBFS noted.
An analyst told Gulf Times that “both the drops relate directly to the government.”
“On the Loans side we can see that government overdrafts have come down, which could mean they stopped using short-term funding. On the deposits side again it could be that government is drawing down on its deposits to make payments related to 2022 FIFA World Cup. I think either way the government has a lot of flexibility in funding,” the analyst added.