The monthly report of QNB Financial Services on the performance of the banking sector revealed that the total assets of the banking sector in Qatar increased by 0.6% compared to the previous month (decreased by 0.7% in 2023) in April 2023 to reach 1.891 trillion Qatari riyals.
The report confirmed that total banking sector loans declined by 0.4% compared to the previous month (0.5% decline in 2023), and deposits shrank by 0.3% compared to the previous month (-3.5% in 2023) in April 2023.
The private sector pushed down total credit, with deposits declining by 0.3% in April, and the loan-to-deposit ratio dropping to 129.6%, compared to 129.7% in March 2023.
The report indicated that the total loan portfolio decreased by 0.4% in April 2023. Local private sector loans decreased by 0.6% compared to the previous month (+0.2% in 2023) in April 2023. The services sector constituted the main reason behind the decline in private sector loans. The services sector (contributing about 30% to private sector loans) decreased by 1.9% compared to the previous month (0.4% in 2023), while the consumption and other services sector (contributing about 20% to private sector loans) decreased by 0.4% month-on-month (-1.2 % in 2023).
In contrast, the real estate sector (contributing 23% to private sector loans) increased by 0.1% compared to the previous month (0.0% in 2023), while the general trade sector (contributing about 21% to private sector loans) increased marginally by 0.1% compared to MoM (+1.8% in 2023) in April 2023.
Total public sector loans remained flat compared to the previous month (-2.3% in 2023). The government sector (which accounts for about 28% of public sector loans) decreased by 1.0% compared to the previous month (-11.1% in 2023). On the other hand, the loan book of government institutions (representing 67% of public sector loans) increased by 0.4% compared to the previous month (+2.0% in 2023), while the semi-government sector registered an increase of 0.4% compared to the previous month (-1.9%). in 2023). Loans outside Qatar increased by 0.4% compared to the previous month (0.4% in 2023) during April 2023.
Private sector deposits decreased by 1.5% MoM (-2.0% in 2023) in April 2023. On the private sector front, the corporate and institutional sector decreased by 3.6% MoM (-7.5% in 2023). In contrast, the consumer sector increased by 0.5% MoM (+3.5% in 2023) during April 2023.
In April 2023, public sector deposits increased by 0.8% compared to the previous month (-4.1% in 2023). Looking at the breakdown of the sectors, the government sector (representing about 30% of public sector deposits) was the main driver of growth by 4.4% MoM (-4.4% in 2023), while the semi-government sector increased by 2.0% MoM (- 18.7% in 2023). In contrast, the Government Enterprises sector (representing about 58% of public sector deposits) declined by 1.1% MoM (-0.4% in 2023) in April 2023.
Non-resident deposits broke free from their general downward trend for the second consecutive month and increased by 0.4% MoM (-5.9% in 2023) in April 2023.
Allocations for loans to the banking sector in Qatar to total loans amounted to 3.7% in April and March 2023.
The Qatari banking sector’s liquid assets to total assets increased by 31.0% in April 2023, compared to 30.4% in March 2023.