DOHA: Banks in Qatar witnessed an uptick in loans driven by the private sector to QR1,364.9bn showing a surge of 0.3 percent month-on-month (m-o-m) in November last year according to QNB Financial Services (QNBFS) monthly banking sector indicators.

The increase in loans in November 2024 was mainly due to a gain by 0.9 percent m-o-m in the private sector. The loans went up by 6 percent in 2024, compared to a growth of 2.5 percent in 2023 and grew by an average 6.5 percent over the past five years (2019-2023).

The loan provisions to gross loans stood at 4.2 percent both in November and October last year.

The deposits gained by 0.4 percent m-o-m to reach QR1,042.1bn in November last year. The deposits grew in November 2024 which was mainly due to gains by 1.4 percent in non-resident deposits and 0.4 percent in private sector deposits.

The deposits by commercial banks in Qatar increased by 5.7 percent in 2024 compared to a decline by 1.3 percent in 2023. While it grew by an average 4.1 percent over the past five years (2019-2023).

QNBFS noted that the total assets of commercial banks in Qatar saw a surge by 1.2 percent to reach QR2.031 trillion during November last year. The rise was mainly due to an increase by 4.9 percent in foreign assets and 0.6 percent in domestic assets.

The total assets moved up by 3.1 percent in last year compared to a growth of 3.4 percent in 2023. The assets grew by an average 6.8 percent over the past five years (2019-2023). The liquid assets to total assets moved up to 29.8 percent in November 2024, compared to 29.3 percent in October 2024.

Meanwhile the loans to deposits ratio edged down to 131 percent as at November 2024. The loans went up by 0.3 percent in November 2024 to reach QR1,364.9bn, while deposits gained 0.4 percent during the same period to reach QR1,042.1bn.

The loan provisions to gross loans stood at 4.2 percent as at November 2024. The loan provisions have increased from 2.3 percent in 2019 to 4 percent in 2023 and 4.2 percent during the period in review as banks have been provisioning for Stage 2 and Stage 3 loans mainly emanating from contracting and real estate sectors.

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