Qatar banks’loan book surged by 4% in September on monthly bases driven by Public sector strong growth , stated QNB Financial Services monthly banking sector.
Meanwhile , deposits increased by 1.9% in September thus increasing the loan-to-deposit ratio (LDR) to 107% against 105% in August. “Going forward, we expect increased activity in the sector. We continue to expect improvement in the public sector, in addition to large corporate loan growth to be the primary drivers of the overall loan book in 2014 followed by the SMEs and consumer lending. Our view is based on the expected uptick in project mobilizations in the coming months”, said QNB.
Public sector posted a strong performance in September. The public sector deposits increased by 7.8 percent MoM (+9.9% YTD 2014) for September 2014. Delving into segment details, the government institutions’ segment improved by 2.1% (+10.8 % YTD 2014).
Moreover, the semi-government institutions’ segment posted a growth of 12.8% (down 9.1% YTD 2014). In addition, the government segment increased by 16.5% (+18.6% YTD). On the other hand, private sector deposits declined by 2.3% (+8% YTD 2014). On the private sector front, the companies and institutions’ segment decreased by 5% (+7% YTD 2014) while the consumer segment posted flat performance, up 0.4% and 8.9% YTD 2014.
The overall loan book increased by 4% , a 0.8% growth in August 2014. Total domestic public sector loans grew by 3.9% to recover lost ground (flat YTD). The government segment’s loan book grew by 23% (up 22.1% YTD 2014).
However, the government institutions’ segment declined by 2.3% and is down 10.5% YTD. Furthermore, the semi-government institutions’ segment declined by 1.6% (+12.0 percent YTD).
Hence, the government institutions and semi-government segment pulled the overall growth down for the month of September 2014.
Private sector loans gained by 2.4% and are up 13.5% YTD. Consumption and others increased by 1.7% (+15.8% YTD). Furthermore, the real estate segment grew by 2.1% percent (+3.5% YTD). However, services segment posted a decline of 1.8% but is still up 20.5% in the first nine months of 2014.
Meanwhile , deposits increased by 1.9% in September thus increasing the loan-to-deposit ratio (LDR) to 107% against 105% in August. “Going forward, we expect increased activity in the sector. We continue to expect improvement in the public sector, in addition to large corporate loan growth to be the primary drivers of the overall loan book in 2014 followed by the SMEs and consumer lending. Our view is based on the expected uptick in project mobilizations in the coming months”, said QNB.
Public sector posted a strong performance in September. The public sector deposits increased by 7.8 percent MoM (+9.9% YTD 2014) for September 2014. Delving into segment details, the government institutions’ segment improved by 2.1% (+10.8 % YTD 2014).
Moreover, the semi-government institutions’ segment posted a growth of 12.8% (down 9.1% YTD 2014). In addition, the government segment increased by 16.5% (+18.6% YTD). On the other hand, private sector deposits declined by 2.3% (+8% YTD 2014). On the private sector front, the companies and institutions’ segment decreased by 5% (+7% YTD 2014) while the consumer segment posted flat performance, up 0.4% and 8.9% YTD 2014.
The overall loan book increased by 4% , a 0.8% growth in August 2014. Total domestic public sector loans grew by 3.9% to recover lost ground (flat YTD). The government segment’s loan book grew by 23% (up 22.1% YTD 2014).
However, the government institutions’ segment declined by 2.3% and is down 10.5% YTD. Furthermore, the semi-government institutions’ segment declined by 1.6% (+12.0 percent YTD).
Hence, the government institutions and semi-government segment pulled the overall growth down for the month of September 2014.
Private sector loans gained by 2.4% and are up 13.5% YTD. Consumption and others increased by 1.7% (+15.8% YTD). Furthermore, the real estate segment grew by 2.1% percent (+3.5% YTD). However, services segment posted a decline of 1.8% but is still up 20.5% in the first nine months of 2014.
Source:
Mubasher
