Doha: Qatar banking sector assets increased by 1.0 percent MoM (down 1.3 percent in 2023) in March 2023 to reach QR1.881 trillion.
The banking sector’s Loan Book increased by 0.6 percent MoM (down 0.1 percent in 2023) and deposits grew by 1.8 percent MoM (-3.2 percent in 2023) in March 2023. Both the private and public sectors pushed the overall credit higher. As deposits increased by 1.8 percent in March, the LDR declined to 129.7 percent vs. 131.2 percent in February 2023.The overall loan book grew by 0.6 percent in March 2023. Domestic private sector loans moved up by 0.7 percent MoM (+0.8 percent in 2023) in March 2023. The Services segment was the main contributor towards the private sector loan gain. Services (contributes ~30 percent to private sector loans) increased by 3.0 percent MoM (2.4 percent in 2023), while Generalde (contributes ~21% to private sector loans) gained 0.9 percent MoM (+1.7 percent in 2023).
However, the Real Estate segment (contributes ~22 percent to private sector loans) declined by 1.8 percent MoM (-0.1 percent in 2023), while consumption and others (contributes ~20 percent to private sector loans) moved lower by 0.3 percent MoM (-0.8 percent in 2023) in March 2023.
The total public sector loans went up by 0.6 percent MoM (-2.2 percent in 2023). The government segment (represents ~29 percent of public sector loans) gained 2.2 percent MoM (-10.2 percent in 2023), while the government institutions’ segment (represents ~67 percent of public sector loans) loan book added 0.1 percent MoM (+1.6% in 2023). However, the semi-government institutions’ segment declined by 1.7 percent MoM (-2.3 percent in 2023). Outside Qatar loans moved up marginally by 0.1 percent MoM (0.0% in 2023) during the month of March 2023.
The public sector deposits increased by 3.0 percent MoM (-4.9 percent in 2023) for the month of March 2023.
Looking at segment details, the government segment (represents ~29% of public sector deposits) was the main driver with a growth of 12.4 percent MoM (-8.4 percent in 2023), while the government institutions’ segment (represents ~59% of public sector deposits) moved up 3.4 percent MoM (0.7 percent in 2023).
However, the semi-government institutions’ segment fell by 16.4 percent MoM (-20.3 percent in 2023) in March 2023.
Private sector deposits moved up by 0.6 percent MoM (-0.5 percent in 2023) in March 2023. On the private sector front, the consumer segment increased by 1.1 percent MoM (+3.0% in 2023) during March 2023, while the companies & institutions’ segment edged up by 0.1 percent MoM (-4.0 percent in 2023).
The non-resident deposits shifted from its general downward trend and went up by 2.8 percent MoM (-6.4 percent in 2023) in March 2023.
The banking sector loan provisions to gross loans was at 3.7 percent in March 2023, compared to 3.6 percent in February.The banking sector liquid assets to total assets was at 30.4 percent in March 2023, compared to 30.3 percent in February.
