Total assets of commercial banks in Qatar increased by 1.8 percent month- on- month (MoM) and 8.6 percent year- to- date (YTD) in December 2021 to reach QR1.827 trillion, QNB Financial Services (QNBFS) has said in a report released on Tuesday.
According to QNBFS’s Qatar Monthly Banking Sector Update for December 2021, the loan book of Qatari banks increased by 0.2 percent MoM and 7.8 percent YTD and deposits went up by 1.1 percent MoM and 7.6 percent YTD in December 2021.
The private sector pushed the credit upwards of 0.5 percent MoM in December. As deposits went up by 1.1 percent in December, the LDR went down to 124.9 percent against 125.9 percent in November.
Public sector deposits went up by 1.9 percent MoM and 9.6 percent YTD for the month of December 2021 resulting in the overall gain in deposits. Looking at segment details, the government segment represents 35 percent of public sector deposits surged up by 21.4 percent MoM and 35.2 percent YTD. The government institutions’ segment that represents 52 percent of public sector deposits went down by 5.6 percent MoM and 2.8 percent in 2021.
The semi-government institutions’ segment declined by 8.1 percent MoM and increased 11 percent in 2021. Non-resident deposits increased by 1.1 percent MoM and 14.5 percent in 2021. Private sector deposits went up by 0.4 percent MoM and 1.9 percent in 2021. On the private sector front, companies and institutions’ segment went up by 1.1 percent MoM and 2.5 percent in 2021, while the consumer segment moved down by 0.1 percent MoM and increased 1.5 percent in 2021.
According to the report, the overall loan book increased 0.2 percent to reach QR1,216.4 billion in December 2021. Private sector loans gained by 0.5 percent MoM and are up 9.5 percent in 2021. Services and Consumption and Others segment mainly contributed toward the private sector loan growth for December 2021.
Services sector that contributes 28 percent to private sector loans increased by 0.8 percent MoM and 15.8 percent in 2021. Consumption and Others segment that contributes 21 percent to private sector loans increased by 0.9 percent MoM and 3.1 percent in 2021.
The real estate sector that contributes 21 percent to private sector loans went up marginally MoM and 5.4 percent in 2021. However, General Trade that contributes 21 percent to private sector loans declined slightly by 0.1 percent MoM and 11.1 percent YTD during December 2021.
Total domestic public sector loans went down by 0.1 percent MoM and 7.6 percent in 2021. The government segment’s loan book declined by 0.6 percent MoM and 4 percent in 2021 while the semi-government institutions’ segment also moved down by 0.6 percent MoM and 1.9 percent in 2021. However, the report said, the government institutions’ segment that represents 57 percent of public sector loans went up by 0.2 percent MoM and 11 percent in 2021.
According to the report, the overall loans grew by 7.8 percent in 2021, compared to a growth of 8.6 percent in 2020. Loans grew by an average of 7.6 percent over the past five years.