The monthly report of QNB Financial Services on the performance of the banking sector confirmed that the total assets of the banking sector in Qatar increased by 1.0% on a monthly basis (down by 1.3% in 2023) in March 2023, to reach 1.881 trillion riyals. Total loans to the banking sector in Qatar increased by 0.6% MoM (down by 0.1% in 2023) and deposits increased by 1.8% MoM (-3.2% in 2023) in March 2023.
The report added: Both the private and public sectors pushed aggregate credit higher. Due to the increase in deposits by 1.8% in March, the loan-to-deposit ratio decreased to 129.7%, compared to 131.2% in February 2023.
The total loan portfolio increased by 0.6% in March 2023, and domestic private sector loans increased by 0.7% MoM (+0.8% in 2023) in March 2023.
Services major contributor
The services sector was the main contributor to private sector loan gains. The services sector (which contributes about 30% to private sector loans) increased by 3.0% MoM (2.4% in 2023), while the general commerce sector (which contributes 21% to private sector loans) increased by 0.9% MoM (+1.7% in 2023).
However, the real estate sector (which contributes 22% to private sector loans) decreased by 1.8% compared to the previous month (-0.1% in 2023), while consumption and other services (which contributes nearly 20% to private sector loans) decreased by 0.3% compared to the previous month (-0.8% in 2023) March 2023.
Total public sector loans increased by 0.6% compared to the previous month (-2.2% in 2023). The government sector (representing about 29% of public sector loans) gained 2.2% month-on-month (-10.2% in 2023), while the government enterprise sector (representing about 67% of public sector loans) increased by 0.1% month-on-month. the former (+1.6% in 2023).
However, the semi-government sector decreased by 1.7% compared to the previous month (-2.3% in 2023). Loans outside Qatar increased slightly by 0.1% MoM (0.0% in 2023) during March 2023.
public sector deposits
Public sector deposits increased by 3.0% MoM (-4.9% in 2023) to March 2023. Looking at the breakdown of sectors, the government sector (representing about 29% of public sector deposits) was the main driver of growth by 12.4% MoM Previously (-8.4% in 2023), while the Government Enterprises sector (accounting for about 59% of public sector deposits) increased by 3.4% compared to the previous month (0.7% in 2023). However, the semi-government sector declined by 16.4% MoM (-20.3% in 2023) in March 2023.
Private sector deposits also increased by 0.6% MoM (-0.5% in 2023) in March 2023. On the private sector front, the consumer sector increased by 1.1% MoM (+3.0% in 2023) during March 2023, in The corporate and institutional sector increased by 0.1% compared to the previous month (-4.0% in 2023).
Non-resident deposits changed their general downward trend and increased by 2.8% MoM (-6.4% in 2023) in March 2023.
Qatar’s banking sector loan allocations to total loans reached 3.7% in March 2023, compared to 3.6% in February 2023.
The ratio of liquid assets of the Qatari banking sector to total assets reached 30.4% in March 2023, compared to 30.3% in February 2023.
