Qatari banks loan book has declined by around 2% in October , said a recent report compiled by QNB Financial Services - QNBFS.
Also, deposits had declined by 0.3% in October.
Public sector (down 5.7%) was the primary driver of the overall decline in the loan book (public sector loans were up 3.9% in September). Moreover, deposits also fell slightly by 0.3% in October. Thus, the loan to deposit ratio (LDR) declined to 105% as against 107% in September.
QNBFS noted that it expects increased activity in the sector on continues improvement in the public sector, in addition to large corporate loan growth followed by the SMEs and consumer lending to be the primary drivers of the overall loan book in 2014 and 2015. QNB said its view is based on the expected uptick in project mobilizations in the coming months.
Moreover , the Qatari public sector deposits decreased by 3.3% (up by 6.3% year-to-date 2014) for the month of October 2014. Delving into segment details, the government institutions’ segment improved by 0.5% (+11.4 percent YTD 2014). Moreover, the semi-government institutions’ segment posted a growth of 10.1% (up 0.1% YTD 2014). However, the government segment decreased by 15.4% month-on-month (up 0.3% YTD).
On the other hand, private sector deposits increased by 1.0% (up 9.1% YTD 2014). On the private sector front, the companies & institutions’ segment increased by 1.0% MoM (up 8.1% YTD 2014) while the consumer segment posted a growth of 1.1% MoM (up 10.1% YTD).
The overall loan book declined by 2.0%t MoM vs. a 4.0% growth MoM in September 2014. Total domestic public sector loans decreased by 5.7% (also down 5.75 YTD). The government segment’s loan book went down by 16.8% (up 1.6% YTD 2014). Moreover, the government institutions’ segment declined by 1.5% and is down 11.85 YTD.
Furthermore, the semi-government institutions’ segment declined by 0.5% (up 11.4% YTD). Hence, all the three public sector segments pulled the overall loan book down for the month of October 2014. Private sector loans gained by 0.3% and are up 13.8% YTD.
Consumption & others increased by 0.9% (up 16.9%t YTD). The Real Estate segment grew by 2.1% (up 5.7% YTD). However, the Services segment posted a decline of 7.2% but is still up 11.8 percent in the first ten months of 2014.
Overall, the segments representing general trade (up 27.1% YTD) and contractors (up 23.0% YTD) are the best performing segments in the private sector YTD. On the other hand, the industry segment is flat YTD.
Also, deposits had declined by 0.3% in October.
Public sector (down 5.7%) was the primary driver of the overall decline in the loan book (public sector loans were up 3.9% in September). Moreover, deposits also fell slightly by 0.3% in October. Thus, the loan to deposit ratio (LDR) declined to 105% as against 107% in September.
QNBFS noted that it expects increased activity in the sector on continues improvement in the public sector, in addition to large corporate loan growth followed by the SMEs and consumer lending to be the primary drivers of the overall loan book in 2014 and 2015. QNB said its view is based on the expected uptick in project mobilizations in the coming months.
Moreover , the Qatari public sector deposits decreased by 3.3% (up by 6.3% year-to-date 2014) for the month of October 2014. Delving into segment details, the government institutions’ segment improved by 0.5% (+11.4 percent YTD 2014). Moreover, the semi-government institutions’ segment posted a growth of 10.1% (up 0.1% YTD 2014). However, the government segment decreased by 15.4% month-on-month (up 0.3% YTD).
On the other hand, private sector deposits increased by 1.0% (up 9.1% YTD 2014). On the private sector front, the companies & institutions’ segment increased by 1.0% MoM (up 8.1% YTD 2014) while the consumer segment posted a growth of 1.1% MoM (up 10.1% YTD).
The overall loan book declined by 2.0%t MoM vs. a 4.0% growth MoM in September 2014. Total domestic public sector loans decreased by 5.7% (also down 5.75 YTD). The government segment’s loan book went down by 16.8% (up 1.6% YTD 2014). Moreover, the government institutions’ segment declined by 1.5% and is down 11.85 YTD.
Furthermore, the semi-government institutions’ segment declined by 0.5% (up 11.4% YTD). Hence, all the three public sector segments pulled the overall loan book down for the month of October 2014. Private sector loans gained by 0.3% and are up 13.8% YTD.
Consumption & others increased by 0.9% (up 16.9%t YTD). The Real Estate segment grew by 2.1% (up 5.7% YTD). However, the Services segment posted a decline of 7.2% but is still up 11.8 percent in the first ten months of 2014.
Overall, the segments representing general trade (up 27.1% YTD) and contractors (up 23.0% YTD) are the best performing segments in the private sector YTD. On the other hand, the industry segment is flat YTD.
Source:
Mubasher
