DOHA: Qatar banks’ loan book decreased by 0.5 percent and deposits dipped by 0.2 percent on month-on-month (MoM) in April, 2015.
Public sector pulled down total credit growth with a decline of 4.7 percent MoM, down 5.9 percent year-to-date (YTD). Public sector deposits receded by 4.8 percent, down 4.5 percent YTD, QNB Financial Services (QNBFS) monthly banking sector update noted yesterday.
The growth in the bank’s loan book and deposits are up by 2.9 percent and 3.1 percent, respectively on YTD basis.
The public sector deposits dropped by 4.8 percent MoM for the month of April 2015 Vs a decent growth of 1.3 percent in March. Delving into segment details, the government institutions’ segment, which represents an estimated 57 percent of public sector deposits, declined by 8.3 percent, down 4.4 percent YTD.
Moreover, the government segment receded by 6.9 percent, down 4.5 percent YTD, after surging by 50.1 percent MoM in March and dropping by 11.4 percent and 22.9 percent in February and January 2015, respectively.
On the other hand, the semi-government institutions’ segment posted strong performance, expanding by 13.6 percent MoM, down 4.9 percent YTD. On the Private sector front, the companies and institutions’ segment climbed up by 1.1 percent MoM, but down 1.3 percent YTD. The consumer segment followed suit and ticked up by 0.8 percent MoM, but up by 5.7 percent YTD. .Non-resident deposits grew by 10.7 percent MoM and 45.5 percent YTD.
The overall loan book reversed its growth trajectory and declined MoM. Total domestic public sector loans decreased by 4.7 percent vs. a robust growth of 4.7 percent MoM in March 2015. The government segment’s loan book contracted by 23.5 percent Vs a robust growth of 23.7 percent in March.
On the other hand the government institutions’ segment, which represents an estimated 64 percent of public sector loans exhibited healthy performance growing by 2.8 percent MoM after exhibiting flat performance in March. Furthermore, semi-government institutions’ segment expanded by 6.1 percent MoM. Hence, the government sub-segment pulled the overall loan book down for the month of April 2015.
Private sector loans grew by 1.9 percent MoM vs. 3.1 percent MoM growth in March 2015.The Consumption & Others followed by General Trade positively contributed toward the loan growth. Loans to the Consumption & Others segment , which contributes 31 percent to private sector loans, expanded by four percent MoM and11.8 percent YTD, while General Trade increased by 5.0 percent MoM and 8.8 percent YTD. Moreover, the Real Estate and Contractors segments increased by 1.1 percent and 1.0 percent, respectively on MoM. On the other hand, Services, which contributes 18 percent to private sector loans, dipped by 2.2 percent MoM and grew by 5.4 percent YTD.
