Qatar banking sector total assets declined by 1.1% month-on-month (MoM -0.8% in 2022) in April to QR1.812tn, QNB Financial Services has said in a report.
The banking sector’s total loan book went down by 0.4% MoM (-0.5% in 2022) and deposits moved down by 1.2% MoM (-1.9% in 2022) in April.
Loans declined by 0.4% during April to QR1,210.6bn. Loans drop in April was due to a decline by 1.4% from the public sector and 3.5% from outside Qatar.
Loans have so far declined by 0.5% in 2022, compared to a growth of 7.8% in 2021. Loans grew by an average 7.6% over the past five years (2017-2021) QNBFS said.
Deposits went down by 1.2% during April to QR956.1bn. Deposits decline in April 2022 was mainly due to a 6.5% cutback in non-resident deposits, the report said.
Deposits have so far gone down by 1.9% in 2022, compared to a growth of 7 .6% in 2021. Deposits grew by an average 6.1 % over the past five years (2017-2021), QNBFS noted.
As deposits moved down by 1.2% in April, the LDR went up to 126.6% compared with 125.6% in March.
The overall loan book moved lower by 0.4% in April 2022. Domestic Public Sector loans went down by 1.4% MoM (-3.6% in 2022).
The government segment’s (represents nearly 35% of public sector loans) loan book declined by 3.0% MoM (-10.4% in 2022), while the semi-government institutions’ segment moved down by 5.5% MoM (+2.7% in 2022).
However, the government institutions’ segment (represents nearly 60% of public sector loans) edged up marginally MoM (+0.4% in 2022).
Outside Qatar loans declined by 3.5% MoM (-5.7% in 2022) during April.
Total Private sector loans moved up by 0.3% MoM (+1.5% in 2022) in April 2022. Real estate, consumption & others and general trade segments mainly contributed toward the private sector loan growth in April.
Real estate segment (contributes nearly 21% to private sector loans) increased by 1.3% MoM (+1.5% in 2022). Consumption and others (contributes nearly 22% to private sector loans) went up by 0.7% MoM (+2.7% in 2022).
General trade (contributes nearly 22% to private sector loans) moved up by 0.5% MoM (+2.3% in 2022). However, services (contributes nearly 28% to private sector loans) declined by 0.7% MoM (+0.9% in 2022) during the month of April 2022.
Non-resident deposits declined by 6.5% MoM (-13.9% in 2022) in April resulting in the overall drop in the Qatar banking sector deposits.
However, public sector deposits went up by 1.7% MoM (+2.6% in 2022). Looking at segment details, the government institutions’ segment (represents nearly 55% of public sector deposits) increased by 2.4% MoM (+7.1% in 2022), while the government segment (represents nearly 32% of public sector deposits) gained by 0.4% MoM (-5.0% in 2022) and the semi-government institutions’ segment moved up by 1.8% MoM (+4.7% in 2022).
Private sector deposits moved up by 0.1% MoM (+3.3% in 2022). On the private sector front, the companies and institutions’ segment went up by 0.2% MoM (+3.2% in 2022), while the consumer segment edged down marginally MoM (+3.4% in 2022).
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