Qatar’s banking sector’s total assets saw a 0.2 percent month-on-month increase in January 2024 totaling QAR1.974 trillion ($542 billion), reported QNB Financial Services (QNBFS) in its monthly banking sector update. The banking sector demonstrated stability and resilience, with modest growth in total assets, loans and deposits.
Total loans
Qatar’s banking sector total loan book saw a 2.5 percent increase compared to December 2023. Total public sector loans increased by 6.5 percent while total private sector loans increased by 1.0 percent in January 2024 compared to December 2023.
Within the public sector, Qatar’s government segment, which represents around 31 percent of public sector loans, was the main growth driver with a 16.0 percent increase in loans. Meanwhile, the government institutions segment, which represents around 63 percent of public sector loans, saw a 2.8 percent increase in loans.
In the private sector, consumption and general trade were the main drivers for the increase in loans. The ‘consumption and others’ segment, which contributes around 21 percent to private sector loans, increased 1.8 percent. Meanwhile, general trade, which contributes around 21 percent to private sector loans, increased by 1.5 percent month-on-month.
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Deposit dynamics
Deposits saw a 2.9 percent increase in January 2024. As deposits gained, the loan-to-deposit ratio went down to 130.1 percent compared to 130.6 percent in December 2023.
There was also an increase in public sector deposits by 5.3 percent in January 2024 compared to December 2023, while private sector deposits increased by 1.6 percent. Moreover, non-resident deposits saw a 1.5 percent increase during the same period.
In the public sector, the government segment saw a staggering 14.3 percent increase in deposits, while the government institutions segment deposits increased by 3.2 percent. However, the semi-government institutions segment’s deposits declined by 3.4 percent during the same period.
In the private sector, the consumer segment deposits saw a 2.1 percent increase, while the companies and institutions segment saw a 1.0 percent increase in deposits.
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