16 April 2013
Bank credit saw another strong increase in February following a healthy gain the previous month. Growth was again largely driven by personal facilities. This month it was also supported by a jump credit in the nonfinancial corporate sector, though growth in the latter continued to lose steam. Credit to the nonbank financial sector continued to reflect the deleveraging of investment companies.
* Total bank credit rose by KD 126 million in February to KD 27.07 billion. Credit growth year-on-year (y/y) still dipped to 4.8 percent from 5.3 percent in January due to a base effect. Household credit (personal facilities excluding lending for the purchase of securities) remained the largest source of growth. The latter was joined by a strong gain in loans to the nonfinancial business sector.
* Personal facilities (ex-securities) rose by KD 96 million in February and saw growth against a year ago accelerate to 17.4 percent. Meanwhile, facilities for the purchase of securities were down again by KD 32 million, pushing the category to negative y/y growth of 2.2 percent.
* Credit to nonbank financials saw another drop in February falling by KD 43 million, reflecting the deleveraging of investment companies. The drop was in line with the 2012 monthly average and similar to last month's decline. Credit is down 20 percent against a year ago.
* While credit to nonfinancial businesses saw a larger increase than usual in February, this segment's recovery continued to lose steam. Credit in this segment was up by KD 73 million during the month, but y/y growth slowed to 3.3 percent. Monthly gains averaged KD 15 million during the last six months compared to KD 80 million in the six months up to August 2012 when growth peaked at 6 percent. Gains during the month were seen in all sectors led by real estate, trade, construction and "other".
* Private sector deposits chalked up yet another strong month. February marks the fourth month in a row of healthy gains in deposits, which rose by KD 532 million. KD time deposits (+KD 319 mn) and foreign currency deposits (+KD 181 mn) were behind the strong increase.
* As a result, the broader measure of money (M2) increased by KD 525 mn (+1.8 percent) on the month. The narrower measure (M1), however, contracted by KD 159 mn (-2.1 percent) as KD sight deposits dropped in February.
Bank credit saw another strong increase in February following a healthy gain the previous month. Growth was again largely driven by personal facilities. This month it was also supported by a jump credit in the nonfinancial corporate sector, though growth in the latter continued to lose steam. Credit to the nonbank financial sector continued to reflect the deleveraging of investment companies.
* Total bank credit rose by KD 126 million in February to KD 27.07 billion. Credit growth year-on-year (y/y) still dipped to 4.8 percent from 5.3 percent in January due to a base effect. Household credit (personal facilities excluding lending for the purchase of securities) remained the largest source of growth. The latter was joined by a strong gain in loans to the nonfinancial business sector.
* Personal facilities (ex-securities) rose by KD 96 million in February and saw growth against a year ago accelerate to 17.4 percent. Meanwhile, facilities for the purchase of securities were down again by KD 32 million, pushing the category to negative y/y growth of 2.2 percent.
* Credit to nonbank financials saw another drop in February falling by KD 43 million, reflecting the deleveraging of investment companies. The drop was in line with the 2012 monthly average and similar to last month's decline. Credit is down 20 percent against a year ago.
* While credit to nonfinancial businesses saw a larger increase than usual in February, this segment's recovery continued to lose steam. Credit in this segment was up by KD 73 million during the month, but y/y growth slowed to 3.3 percent. Monthly gains averaged KD 15 million during the last six months compared to KD 80 million in the six months up to August 2012 when growth peaked at 6 percent. Gains during the month were seen in all sectors led by real estate, trade, construction and "other".
* Private sector deposits chalked up yet another strong month. February marks the fourth month in a row of healthy gains in deposits, which rose by KD 532 million. KD time deposits (+KD 319 mn) and foreign currency deposits (+KD 181 mn) were behind the strong increase.
* As a result, the broader measure of money (M2) increased by KD 525 mn (+1.8 percent) on the month. The narrower measure (M1), however, contracted by KD 159 mn (-2.1 percent) as KD sight deposits dropped in February.
* Deposit rates on dinar time deposits for the 1-month and 3-month maturities remained unchanged at 0.61 percent, 0.79 percent respectively. The 6-month rate was down 2 bps to 1.04 percent while the 12-month deposit rates averaged 1.27 percent, falling 1 bp.
© Arab Times 2013
