DOHA: The loan book of Qatar banks decreased by 0.1 percent month-on-month (MoM) (up 7.8 percent YTD) in November 2014, while deposits increased by 1.2 percent (up 9.3 percent YTD), QNB Financial Services (QNBFS) monthly banking sector report said yesterday.
Public sector pulled total credit growth, down 2.4 percent MoM, as private sector posted a healthy growth of 1.5 percent. Moreover, deposits gained by 1.2 percent. The loan-to-deposit ratio (LDR) declined to 104 percent against 105 percent in October.
The public sector deposits increased by 0.1 percent MoM (up 6.4 percent YTD 2014) for the month of November.
The government institutions’ segment improved by 1.8 percent. The semi-government institutions’ segment posted a growth of 5.7 percent. However, the government segment decreased by 6.3 percent. On the other hand, private sector deposits increased by 0.4 percent. On the private sector front, the companies and institutions’ segment increased by 1 percent, while the consumer segment posted a decline of 0.1 percent. Non-resident deposits drove the growth in November, up 15.1 percent MoM and 26.8 percent YTD.
The overall loan book posted a flat performance. Total domestic public sector loans decreased by 2.4 percent, down 7.9 percent YTD. The government segment’s loan book went down by 10.7 percent, also down 9.3 percent. Moreover, the government institutions’ segment declined by 1.1 percent and is down 12.8 percent YTD. However, the semi-government institutions’ segment grew by 6.6 percent MoM and 18.8 percent YTD. Hence, the government and government institutions pulled the overall loan book down for November.
Private sector loans gained by 1.5 percent and are up 15.5 percent YTD. General trade followed by services and contractors positively contributed toward the loan growth. The real estate sector pulled credit growth down in November. General trade increased by 4.9 percent MoM. Services increased by 3.4 percent. Contractors increased by 2.1 percent. However, real estate segment declined by 0.5 percent MoM and is up 5.2 percent YTD. Overall, the segments representing general trade, up 33.3 percent, and contractors, which grew by 25.6 percent, are the best performing segments in the private sector YTD. The industry segment is flat YTD. The Peninsula
