Driven by the public sector, Qatar banks’ overall loan book climbed up 1.1% month-on-month (MoM) in September, QNB Financial Services (QNBFS) has said in a report.
The loan book increased by 1.1% MoM after declining by 1.7% MoM in August (gaining by 2% MoM in July).
Total domestic public sector loans increased by 2.2% MoM (+12.1% year-to-date YTD). The government segment’s loan book led the growth, expanding by 4.8% MoM (+36.4% YTD).
Moreover, the government institutions’ segment (represents ~53% of public sector loans) ticked up by 0.7% MoM during September as opposed to a flat performance MoM in August (+0.2% YTD), it said.
On the other hand, the semi-government institutions’ segment slightly dipped MoM (-0.2%). Hence, the government sub-segment pulled the overall loan book up for the month of September .
Private sector loans inched up by 0.7% MoM in September compared with a flat performance (+0.4%) MoM in August. The real estate segment aided the uptick in private sector loans (contributes ~28% to private sector loans), moving up by 0.8% MoM (+4.1% YTD).
Moreover, the consumption and others segment (represents ~28% of private sector loans) also helped loan growth, increasing by 0.7% MoM (flat YTD). On the other hand, Services exhibited flat performance MoM (+16.9% YTD). It should be noted that on a YTD basis, this segment contributed the most to the growth in total private sector loans.
Deposits followed suit, growing by 2.6% MoM (declining by 3.4 MoM in August). Public sector drove total credit growth with a gain of 2.2% MoM (down 5.6% MoM in August.).
Moreover, public sector deposits expanded by 3.2% MoM after dropping by 10.5% MoM in August. Thus, QNBFS noted that the LDR was broadly unchanged at 118% compared with 119% at the end of August (117% in July).
The public sector deposits rebounded by 3.2% MoM in September after a decline of 10.5% and 2.5% MoM in August and July, respectively. Delving into segment details, the government segment (represents ~32% of public sector deposits) led the growth, increasing by 8.1% MoM (flat YTD). Moreover, the semi-government institutions’ segment gained by 6.7% MoM compared with a 3.7% MoM drop in August  (down 12.3% YTD).
On the other hand, the government institutions segment continued its negative trajectory, receding by 0.7% MoM after dropping by 1.4% and 3.7% MoM in August and July, respectively (down 21.4% YTD). On the private sector front, the companies and institutions’ segment climbed up by 1.3% MoM after a flattish performance in August (down 6.7% YTD).
On the other hand, the consumer segment exhibited flat performance MoM (+8.1% YTD). Non-resident deposits expanded by 6.6% MoM (+69.1% YTD), QNBFS said.