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DOHA: Qatar’s banking sector witnessed a significant milestone in September 2024 with total assets increasing by 1.2% month-on-month (MoM) reaching QR2.026 trillion, according to a report released by QNB Financial Services (QNBFS).
The increase in total assets in September 2024 was mainly due to a gain by 1.1% in domestic assets. The total assets were up by 2.9% in 2024, compared to a growth of 3.4% in 2023 and they grew by an average 6.8% over the past five years (2019-2023).
This shows the continued resilience and expansion of the financial system in the country. While the liquid assets to total assets went up to 30.3% in September 2024, compared to 29.8% in August 2024.
The sector’s loan book moved up 0.5 percent MoM to reach QR1,349.3bn in September 2024. This increase in loans was mainly due to a gain by 0.7% in the private sector and the loans moved up by 4.8% in 2024 compared to growth of 2.5% in 2023. The loans grew by an average 6.5% over the past five years (2019-2023). The loan provisions to gross loans edged up to 4.2% in September 2024, compared to 4% in August 2024.
In terms of deposits by commercial banks went up by 1.1% during September 2024 to reach QR1,046.9bn. The deposits rise in September was broad based with an increase by 1.3% in public sector deposits, 2% from non-resident deposits and 0.6% from private sector deposits.
The deposits increased 6.2% in 2024, compared to a decline by 1.3% in 2023. They grew by an average 4.1% over the past five years (2019-2023).
The loans to deposits ratio slipped down to 128.9% as at September 2024 and the loans moved up by 0.5% in September 2024 to reach QR1,349.3bn, while deposits went up 1.1% in September 2024 to reach QR1,046.9bn.
The loan provisions to gross loans went up to 4.2% as at September 2024. While the loan provisions have increased from 2.3% in 2019 to 4% in 2023 and 4.2% as at September 2023 as banks have been provisioning for Stage 2 and Stage 3 Loans mainly emanating from Contracting and Real Estate Sectors, the data revealed.
The financial services sector is one of the major contributors to Qatar’s economy, ranked second after the hydro-carbon industry. This reflects the prominence of the sector in shaping Qatar’s economy as one of the world’s most stable, resilient, and competitive economies.
With the continuous economic growth, the demand for financial service grows accordingly, supporting the country’s position as a financial hub in the region.
Home to a world-class climate for business and investment, Qatar offers government-backed incentives, including but not restricted to, zero tax on personal income, tax holidays, and Foreign Direct Investment capital incentives.
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