The “QNB Financial Services Monthly Report on the Performance of the Banking Sector in Qatar” revealed that the total assets of the banking sector in Qatar increased by 0.3% on a monthly basis (down by 2.3% in 2023) in February 2023, to reach 1.862 trillion Qatari riyals.
Total loans to the banking sector in Qatar increased by 0.1% MoM (down by 0.7% in 2023) and deposits decreased by 1.0% MoM (-4.9% in 2023) in February 2023. Both private and public sectors paid total credit to up. Due to the decrease in deposits by 0.1% in February, the loan-to-deposit ratio increased to 131.1%, compared to 129.6% in January 2023.
The total loan portfolio increased by 0.1% in February 2023. Domestic private sector loans increased by 0.1% MoM (+0.2% in 2023) in February 2023. The real estate sector was the main contributor to private sector loan gains. The real estate sector (which contributes 23% of private sector loans) increased by 2.0% compared to the previous month (+1.7% in 2023). The general trade sector (which contributes 21% to private sector loans) increased by 0.1% compared to the previous month (+0.8% in 2023). However, consumption and others (contributing about 20% to private sector loans) decreased by 0.9% compared to the previous month (-0.6% in 2023), while the services sector (contributing about 29% to private sector loans) decreased by 0.2% compared to the month Previous (-0.6% in 2023) in February 2023.
Total public sector loans increased by 0.3% compared to the previous month (-2.8% in 2023). The government sector loan book (accounting for approximately 67% of public sector loans) increased by 0.4% month-on-month (+1.5% in 2023), while the government sector (accounting for approximately 28% of public sector loans) added 0.3% month-on-month (-12.1). % in 2023). However, the semi-government sector decreased by 1.2% compared to the previous month (-0.6% in 2023.)
Loans outside Qatar shrank by 0.8% MoM (-0.2% in 2023) during February 2023.
Non-resident deposits continued to decline and decreased by 6.4% MoM (-8.9% in 2023) in February 2023.
Private sector deposits decreased by 0.8% compared to the previous month (-1.1% in 2023) in February 2023. On the private sector front, the corporate and institutional sector decreased by 2.8% compared to the previous month (-4.1% in 2023). However, the consumer sector increased by 1.1% MoM (+1.9% in 2023) during February 2023.
Public sector deposits increased by 1.8% MoM (-7.7% in 2023) for February 2023. Looking at the breakdown of sectors, the Government Institutions sector (accounting for 59% of public sector deposits) increased by 3.6% MoM (-2.6% ). in 2023), while the government sector (accounting for about 27% of public sector deposits) increased by 3.4% compared to the previous month (-18.5% in 2023). However, the semi-government sector declined by 7.2% MoM (-4.7% in 2023) in February 2023.
The ratio of bad loan provisions to total loans was 3.6% in February 2023, similar to January 2023.
The ratio of liquid assets to the total assets of the Qatari banking sector was 30.3% in February 2023, compared to 30.2% in January 2023.
