Qatar banking sector assets reach $540bln in May

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Doha, Qatar: Qatar banking sector total assets increased by 0$540bln.8% month-on-month (MoM) (0.3% in 2024) in May 2024 to reach QR1.975 trillion. The banking sector loan book went up by 0.7% MoM (up 2.5% in 2024), while deposits moved up by 0.7% MoM (up 4.7% in 2024) in the month of May 2024, QNB Financial Services (QNBFS), has said in its monthly banking sector update.

The Services segment in the Private Sector mainly pushed the overall credit higher. As deposits also increased in May, the LDR stood at to 127.9%, similar to that in April 2024. The overall loan book went up 0.7% in May 2024, driven mainly by Private Sector loans. Total Private Sector loans gained 0.7% MoM (+1.1% in 2024) during the month of May 2024.

The Services sector was the main driver for the private sector loan rise in May 2024. Services (contributes ~32% to private sector loans) increased 2.5% MoM (2.4% in 2024), while General Trade (contributes ~22% to private sector loans) went up 0.8% MoM (+2.7% in 2024). However, Consumption & Others (contributes ~20% to private sector loans) declined 0.8% MoM (-2.6% in 2024) and the Real Estate segment (contributes ~20% to private sector loans) was marginally lower by 0.1% MoM (+3.3% in 2024) in May 2024.

The total Public Sector loans moved higher by 0.5% MoM (+3.8% in 2024) in May 2024. The government segment (represents ~29% of public sector loans) was the main driver for the public sector with a gain by 1.2% MoM (+6.0% in 2024), while the government institutions’ segment (represents ~65% of public sector loans) moved up by 0.3% MoM (+4.1% in 2024). However, the semi-government institutions segment closed lower by 0.8% MoM (-10.0% in 2024) in May 2024.

Outside Qatar loans went up by 1.4% MoM (+15.0% in 2024) in May 2024. Non-resident deposits pushed overall deposits higher with a rise by 2.3% MoM (+5.5% in 2024) in May 2024.

Public sector deposits moved up by 0.8% MoM (+9.7% in 2024) for the month of May 2024. Looking at segment details, the government institutions’ segment (represents ~56% of public sector deposits) rose by 2.5% MoM (+9.9% in 2024). However, the government segment (represents ~31% of public sector deposits) went down by 0.9% MoM (+20.9% in 2024), while the semi-government institutions’ segment dropped by 2.1% MoM (-11.4% in 2024) in May 2024.

Private sector deposits stood stagnant MoM (+0.7% in 2024) in May 2024. On the private sector front, the consumer segment moved up by 0.5% MoM (+5.5% in 2024). However, the companies & institutions’ segment went down by 0.5% MoM (-4.9% in 2024).

The Qatar banking sector loan provisions to Gross Loans stood at 3.9% in both May and April 2024. While the Liquid Assets to Total Assets moved lower to 30.1% in May 2024, compared to 30.3% in April 2024.