Doha, Qatar: Qatar’s banking Sector total assets declined 0.6% month-on-month( MoM) (down 1.3% in 2023) in May 2023 to QR1.880 trillion.
The banking sector total loan book went up 0.2% MoM (down 0.3% in 2023) and deposits dropped by 1.0% MoM (-4.5% in 2023) in the month of May 2023.
The private sector pushed the overall credit higher. As deposits moved down by 1.0% in May, the LDR increased to 131.2% versus 129.6% in April 2023.
The overall loan book went up 0.2% in May this year. Domestic private sector loans moved up by 0.5% MoM (+0.7% in 2023) in May.
The services segment was the main driver for the private sector loan increase. Services (contributes ~30% to private sector loans) increased by 1.3% MoM (1.7% in 2023), while consumption and others (contributes ~20% to private sector loans) also moved up by 1.3% MoM (0.1% in 2023), and general trade (contributes ~21% to private sector loans) gained 0.8% MoM (+2.6% in 2023). However, the real estate segment (contributes ~22% to private sector loans) declined by 1.1% MoM (-1.1% in 2023) in May.
The total public sector loans edged lower by 0.2% MoM (-2.5% in 2023). The government segment (represents ~28% of public sector loans) declined 1.1% MoM (-12.1% in 2023), while the semi-government institutions’ segment went down 1.5% MoM (-3.4% in 2023).
However, the government institutions’ segment (represents ~67% of public sector loans) loan book increased 0.3% MoM (+2.3% in 2023). Outside Qatar loan went down by 1.5% MoM (-1.1% in 2023) during the month of May.
Public sector deposits declined by 2.1% MoM (-6.1% in 2023) for the month of May 2023.
Looking at segment details, the government segment (represents 28% of public sector deposits) was the main reason behind the decline with a drop by 7.9% MoM (-12.0% in 2023), while the semi-government institutions’ segment moved down by 3.0% MoM (-21.1% in 2023).
However, the government institutions’ segment (represents ~60% of public sector deposits) moved higher by 1.1% MoM (0.7% in 2023) in May.
Non-resident deposits shifted back to its general downward trend with a 2.7% decline MoM (-8.4% in 2023) in May 2023, after having moved up by 0.4% in April 2023 and an increase of 2.8% in March 2023.
Private sector deposits went up by 0.5% MoM (-1.5% in 2023) in May this year.
On the private sector front, the companies & institutions’ segment gained by 0.8% MoM (-6.8% in 2023), while the consumer segment increased by 0.3% MoM (+3.8% in 2023) during May.
Qatar’s banking sector loan provisions to gross loans was at 3.8% in May 2023, compared to 3.7% in April 2023. The banking sector liquid assets to total assets was at a lower 30.4% in May 2023, compared to 31.0% in April 2023.
