Total assets of Qatar’s banking sector rise 4.2% to QR1.905 trn in 2022

TOTAL assets of Qatar’s banking sector went up by 3.3 percent MoM in December 2022 and 4.2 percent in 2022 to reach QR1.905 trillion, QNB Financial Services (QNBFS) has said in a report released on Wednesday.

According to the report, the total loan book of Qatar’s banking sector went up by 2.7 percent MoM (up 3.3 percent in 2022), and deposits gained by 4.3 percent MoM (+2.6 percent in 2022) in the month of December 2022.

Both the public and private sectors pushed the overall credit higher by 5.9 percent and 2.1 percent respectively MoM in December. As deposits gained by 4.3 percent in December, the LDR moved down to 125.7 percent against 127.6 percent in November 2022.

The overall loan book went up by 2.7 percent in December 2022 as total public sector loans increased by 5.9 percent MoM. In the government segment, which represents 31 percent of public sector loans, credit jumped up by 9.5 percent MoM, while the government institutions’ segment, which represents 64 percent of public sector loans, saw loan book increase by a significant 5 percent MoM and 9.7 percent in 2022.

However, the semi-government institutions’ segment declined by 3.4 percent MoM.

Domestic private sector loans increased by 2.1 percent MoM and 7.4 percent in 2022 in December 2022, the report said. The real estate, services, and general trade segments were for the second consecutive month the main contributors toward the private sector loan growth. The real estate segment, which contributes 23 percent to private sector loans, shot up by 6 percent MoM in December 2022 and 15.2 percent in 2022. Services, which contribute 29 percent to private sector loans, moved up by 2.6 percent MoM and 11.3 percent in 2022.

General Trade, which contributes 21 percent to private sector loans went up by 2.7 percent MoM and 3.5 percent in 2022. However, Consumption and Others, which contributes 20 percent to private sector loans, declined by 2.4 percent MoM in December 2022 and 2.6 percent in 2022. Outside Qatar, loans dipped by 7.1 percent MoM during the month of December 2022.

Public sector deposits increased substantially by 9.5 percent MoM and 20.7 percent 2022 for the month of December 2022.

Looking at segment details, the report said, the government segment, which represents 30 percent of public sector deposits, shot up by 31.3 percent MoM and 4.9 percent in 2022, while the government institutions’ segment, which represents 56 percent of public sector deposits, increased by 2 percent MoM and 28.4 percent in 2022 and the semi-government institutions’ segment moved up by 2.9 percent MoM and 31.8 percent in 2022.

Private sector deposits went up by 1.1 percent MoM and 13.2 percent 2022 in December 2022. On the private sector front, the consumer segment increased by 2.4 percent MoM and 4.4 in December 2022 in 2022. However, the companies and institutions segment declined marginally by 0.1 percent MoM and 23.7 percent in 2022 December 2022.

Non-resident deposits slightly reversed their sharp fall for the year during the month of December 2022 and pushed up by 2.9 percent MoM. However, for the year 2022, non-resident deposits fell by 31.4 percent.