Qatar’s commercial banks see increase in loans and deposits in February, according to QNB Financial Services


Qatar’s commercial banks saw a surge in loans and deposits in February, QNB Financial Services (QNBFS) said in a report.

Loans rose 0.8% to QR 1,156.2 billion, while deposits increased 1.3% last month to QR 912.4 billion.
The loan-to-deposit ratio fell during the month to 126.7% in February, according to QNBFS ‘key monthly Qatar banking indicators.
Deposits with commercial banks in Qatar rose 1.3% in February to reach QR 912.4 billion, driven by deposits from non-residents, QNB Financial Services (QNBFS) said.
The growth in deposits in February is mainly due to an increase in non-resident deposits of 4.5%
Deposits have increased by 0.8% since the start of 2021, compared to a growth of 6.6% in 2020. Deposits have increased by an average of 7% over the last five years (2016-2020), QNBFS said.
On the private sector front, the consumer segment recorded a gain of 1.3% month-on-month (MoM) and (+ 3.2% year-to-date) while the business and retail segment institutions fell by 0.9% per month (-0.5% since the start of 2021).
Public sector deposits declined 0.3% MoM (-2.1% YTD 2021) for the month of February 2021, QNBFS reported.
Looking at the segment details, the government institutions segment (accounts for ~ 58% of public sector deposits) grew 0.2% MoM (-3.5% YTD 2021).
In addition, the semi-government institutions segment posted 1.7% MoM growth (-12.0% YTD 2021). The general government segment fell 1.8% MoM (up 5.2% year-to-date).
The overall loan portfolio increased 0.8% in February in February to reach QR 1,156.2 billion, QNBFS reported.
The increase in lending in February was mainly due to a 2% increase in the public sector.
Loans have increased by 2.4% since the start of 2021, compared to 8.6% growth in 2020. Loans have grown by an average of 8.5% over the past five years (2016-2020 ), said QNBFS.
Total domestic public sector loans increased 2% month-on-month (+ 6.9% year-to-date). The government segment’s loan portfolio grew by 5.1% MoM (+ 15.9% YTD 2021).
However, the segment of government institutions (accounts for almost 53% of public sector loans) decreased by 0.1% MoM (+ 1.3% YTD), while the segment of semi-government institutions fell by 0, 6% MoM (-0.6% YTD).
Private sector lending has grown 0.3% MoM and 0.6% year-to-date, QNBFS said. Real estate followed by consumption and others contributed positively to loan growth.
In contrast, the service sector led to a decline in credit growth in February.
Real estate (contributes ~ 23% to private sector loans) grew by 1.2% MoM. Consumption and others (also contributes ~ 23% to private sector loans) increased by 1.0% MoM (+ 0.9% YTD).
General trade (contributes almost 21% to private sector loans) increased by 0.1% MoM.
However, the services segment (contributes nearly 26% to private sector loans) fell by 0.8% MoM (-2.3% since the start of the year). Finally, the industry segment grew by 0.3%.
Regarding the net interbank position, QNBFS noted that it was at a negative QR227bn in February.
Amounts owed by banks totaled QR 146.8 billion while amounts owed to banks totaled QR 374.3 billion in February.
Due to the fact that overseas banks peaked at QR 319.8 billion in January, QNBFS said.

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