Qatar’s banking sector assets reached 1.975 trillion riyals in May

(MENAFN- Peninsula) Peninsula

Doha, Qatar: Total assets of Qatar’s banking sector increased by 0.8% month-on-month (MoM) (0.3% in 2024) in May 2024 to reach QR1.975 trillion. The banking sector’s loan portfolio increased by 0.7% MoM (up 2.5% in 2024), while deposits increased by 0.7% MoM (up 4.7% in 2024) in May 2024, QNB Financial Services (QNBFS) said in its monthly banking sector update.

Private sector services segment mainly boosted overall credit. As deposits also increased in May, LDR stood at 127.9%, similar to April 2024. Total credit portfolio grew by 0.7% in May 2024, mainly driven by private sector credit. Total private sector credit gained 0.7% MoM (+1.1% in FY2024) in May 2024.

The services sector was the main driver of private sector credit growth in May 2024. Services (accounting for ~32% of private sector credit) grew by 2.5% MoM (2.4% in 2024), while general trade (accounting for ~22% of private sector credit) grew by 0.8% MoM (+2.7% in 2024). However, consumption and other (accounting for ~20% of private sector credit) fell by 0.8% MoM (-2.6% in 2024), and real estate (accounting for ~20% of private sector credit) was slightly lower by 0.1% MoM (+3.3% in 2024) in May 2024.

Total public sector borrowing grew by 0.5% MoM (+3.8% in 2024) in May 2024. The government segment (accounting for ~29% of public sector borrowing) was the main driver of public sector borrowing with growth of 1.2% MoM (+6.0% in 2024), while the general government segment (accounting for ~65% of public sector borrowing) grew by 0.3% MoM (+4.1% in 2024). However, the semi-government segment closed lower by 0.8% MoM (-10.0% in 2024) in May 2024.

Credit originated outside Qatar increased by 1.4% MoM (+15.0% in 2024) in May 2024. Non-resident deposits led to an increase in overall deposits, up 2.3% MoM (+5.5% in 2024) in May 2024.

Public sector deposits grew by 0.8% MoM (+9.7% in 2024) in May 2024. Looking at the segment details, the Government segment (accounting for ~56% of public sector deposits) grew by 2.5% MoM (+9.9% in 2024). However, the Government segment (accounting for ~31% of public sector deposits) fell by 0.9% MoM (+20.9% in 2024), while the Semi-Government segment fell by 2.1% MoM (-11.4% in 2024) in May 2024.

Private sector deposits remained stagnant month-on-month in May 2024 (+0.7% in 2024). In the private sector, the consumer segment grew by 0.5% month-on-month (+5.5% in 2024). In contrast, the corporate and institutional segment fell by 0.5% month-on-month (-4.9% in 2024).

The ratio of Qatar’s banking sector credit reserves to gross loans stood at 3.9% in both May and April 2024. Meanwhile, the ratio of liquid assets to total assets declined to 30.1% in May 2024 compared to 30.3% in April 2024.

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