QNB Financial Services’ monthly report on the performance of the banking sector in the State of Qatar confirmed that in July 2024, the total assets of the banking sector in Qatar decreased by 0.6% on a monthly basis (and increased by 0.9% in 2024) to reach QAR 1.987 trillion.
Total loans in the banking sector in Qatar increased by 0.9% m-o-m (up 3.8% in 2024), while deposits increased by 0.1% m-o-m (up 4.7% in 2024) during July 2024. With loans increasing at a higher rate than deposits during July, the loan-to-deposit ratio rose to 129.4%, compared to 128.4% in June 2024.
Total loans increased by 0.9% in July 2024, mainly driven by public sector loans. Public sector loans increased by 1.9% m-o-m (+5.8% in 2024) in July 2024. The public sector sector (representing around 66% of public sector loans) was the main driver of the public sector, increasing by 2.2% m-o-m (+7.0% in 2024), while the government sector (representing around 29% of public sector loans) increased by 1.3% m-o-m (+5.9% in 2024) and the semi-government sector increased by 0.7% m-o-m (-8.5% in 2024) in July 2024.
Private sector loans also increased by 0.5% m-o-m (+2.4% in 2024) during July 2024. The real estate sector was the main driver of the increase in private sector loans in July 2024. The real estate sector (contributing to about 21% of private sector loans) increased by 1.9% m-o-m (+6.3% in 2024), while the general trade sector (contributing to about 22% of private sector loans) increased by 0.5% m-o-m (+3.5% in 2024). However, the services sector (contributing to about 32% of private sector loans) declined by 0.1% m-o-m (+3.6% in 2024) and the consumption and other sectors sector (contributing to about 20% of private sector loans) declined slightly m-o-m (-3.3% in 2024) in July 2024.
Loans outside Qatar decreased by 0.4% m-o-m (+12.5% in 2024) in July 2024.
Non-resident deposits pushed total deposits higher during July 2024, up 1.3% m-o-m (+11.4% in 2024).
Public sector deposits decreased by 0.2% m-o-m (+6.9% in 2024) in July 2024. Looking at the sector breakdown, the government sector (representing around 56% of public sector deposits) decreased by 0.9% m-o-m (+5.5% in 2024), while the semi-government sector decreased by 3.0% m-o-m (-16.5% in 2024). However, the government sector (representing around 32% of public sector deposits) increased by 2.2% m-o-m (+22.5% in 2024) in July 2024.
Private sector deposits decreased by 0.2% m-o-m (+0.6% in 2024) in July 2024. On the private sector side, the corporate and institutional sector decreased by 1.3% m-o-m (-5.5% in 2024). However, the consumer sector increased by 0.6% m-o-m (+5.9% in 2024).
The ratio of loan provisions in the banking sector in Qatar to total loans amounted to 4.0% in July 2024, compared to 4.1% in June 2024.
The ratio of liquid assets to total assets in the banking sector in Qatar declined to 29.9% in July 2024, compared to 30.7% in June 2024.
