Banking sector assets increased to 1.9 trillion riyals

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.