Satyendra Pathak
Doha
Total assets of Qatar’s banking sector increased by 0.8 percent MoM and (0.3 percent in 2024) in May 2024 to reach QR1.975 trillion, QNB Financial Services (QNBFS) has said in its monthly banking sector update released on Tuesday.
According to the report, the loan book of Qatar’s banking sector went up by 0.7 percent MoM (up 2.5 percenrt in 2024), while deposits moved up by 0.7 percent MoM (up 4.7 percent in 2024) in the month ofMay 2024.
The services segment in the private sector mainly pushed the overall credit higher. As deposits also increased in May, the LDR stood at to 127.9 percent, similar to that in April 2024.
The overall loan book went up 0.7 percent in May 2024, driven mainly by Private Sector loans. Total private sector loans gained 0.7 percent MoM (1.1 percent in 2024) during the month of May 2024.
The services sector was the main driver for the private sector loan rise in May 2024. Services sector, which contributes 32 percent to private sector loans, increased 2.5 percent MoM (2.4 percent in 2024), while general trade that contributes 22 percent to private sector loans went up 0.8 percent MoM (2.7 percent in 2024).
However, Consumption & Others that contributes 20 percent to private sector loans declined 0.8 percent MoM (-2.6 percent in 2024) and the Real Estate segment that contributes 20% to private sector loans was marginally lower by 0.1 percent MoM (3.3 percent in 2024) in May 2024.
The total public sector loans moved higher by 0.5 percent MoM (3.8 percent in 2024) in May 2024. The government segment that represents 29 percent of public sector loans was the main driver for the public sector with a gain by 1.2 percent MoM (6 percent in 2024), while the government institutions’ segment that represents 65 percent of public sector loans moved up by 0.3 percent MoM (4.1 percent in 2024). However, the semi-government institutions segment closed lower by 0.8 percent MoM (-10 percent in 2024) in May 2024.
Outside Qatar, the report said, loans went up by 1.4 percent MoM (15 percent in 2024) in May 2024.
Non-resident deposits pushed overall deposits higher with a rise by 2.3 percent MoM (5.5 percent in 2024) in May 2024, while the public sector deposits moved up by 0.8 percent MoM (9.7 percent in 2024) for the month of May 2024.
Looking at segment details, the government institutions’ segment that represents 56 percent of public sector deposits rose by 2.5 percent MoM (9.9 percent in 2024).
However, the government segment that represents 31 percent of public sector deposits went down by 0.9 percent MoM (20.9 percent in 2024), while the semi-government institutions’ segment dropped by 2.1 percent MoM (-11.4 percent in 2024) in May 2024.
Private sector deposits stood stagnant MoM (0.7% in 2024) in May 2024.
On the private sector front, the report said, the consumer segment moved up by 0.5 percent MoM (5.5 percent in 2024). However, the companies & institutions’ segment went down by 0.5 percent MoM (-4.9 percent in 2024).
The report said that the Qatar banking sector’s loan provisions to gross loans stood at 3.9 percent in both May andApril 2024.
Qatar banking sector’s liquid assets to total assets moved lower to 30.1 percent in May 2024, compared to 30.3 percent in April 2024, thereport said.
