Qatar banking sector assets reach $545bln in March

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Doha, Qatar: Qatar banking sector total assets increased by 0.8% MoM (up 0.9% in 2024) in March 2024 to reach QR1.986 trillion.

The banking sector deposits rose 0.2% MoM (up 4.6% in 2024), while the total loan book edged down by 0.2% MoM (up 1.7% in 2024) in the month of March 2024, QNB Financial Services (QNBFS), has said in its monthly banking sector update.

The public sector pushed the overall credit lower. As deposits gained in March, the LDR went down to 127.1% vs. 127.6% in February 2024.

Overall deposits went up as non-resident deposits surged 3.9% MoM (+6.1% in 2024) in March 2024. Public sector deposits moved up by 0.2% MoM (+7.9% in 2024) for the month of March 2024.

Looking at segment details, the government institutions’ segment (represents ~56% of public sector deposits) increased 2.4% MoM (+8.2% in 2024), while the government segment (represents ~31% of public sector deposits) went up by 1.1% MoM (+16.4% in 2024). However, the semi-government institutions’ segment fell by 10.3% MoM (-8.8% in 2024) in March 2024.

The private sector deposits contracted 1.1% MoM (+1.5% in 2024) in March 2024. On the private sector front, the companies & institutions’ segment dropped by 3.6% MoM (-1.7% in 2024). However, the consumer segment moved higher by 1.0% MoM (+4.4% in 2024).

The overall loan book edged down 0.2% in March 2024. Total public sector loans declined 1.3% MoM (+4.3% in 2024) in March 2024. The government segment (represents ~30% of public sector loans) was the main mover for the public sector with a drop by 4.5% MoM (+7.3% in 2024), while the semi-government institutions segment fell 4.3% MoM (+0.3% in 2024). However, the government institutions’ segment (represents ~64% of public sector loans) gained 0.5% MoM (+3.4% in 2024) in March 2024.

Total private sector loans went up slightly by 0.3% MoM (+0.8% in 2024). The services sector was the main driver for the private sector loan rise in March 2024. Services (contributes ~32% to private sector loans) increased 1.0% MoM (+2.0% in 2024), while General Trade (contributes ~21% to private sector loans) went up 0.3% MoM (+1.3% in 2024), and Consumption & Others (contributes ~21% to private sector loans) moved up 0.3% MoM (+0.6% in 2024).

However, the real estate segment (contributes ~20% to private sector loans) went down by 0.5% MoM (-0.1% in 2024) in March 2024. Outside Qatar loans was marginally lower MoM (-1.2% in 2024) during the month of March 2024.

The Qatar banking sector loan provisions to gross loans was at 3.9% in March 2024, compared to 3.8% in February 2024. While the banking Sector liquid assets to total assets went up to 31.2% in March 2024, compared to 30.6% in February 2024.