The Government and public sector deposits in Qatar’s banking system have increased by around QR41. 9bn during the month of June 2017, compared to the previous month, and reached QR242.2bn.
While government deposits have reached the level of QR86.1bn, the deposits of government institutions rose to QR129.3bn. The deposits of semi government institutions, in which government share is less than 100 percent and more than 50 percent, touched QR26.8bn, according to data provided by Qatar Central Bank (QCB).
A reading of QCB’s latest monthly data by The Group Securities, noted that the government and the public sector’s total loans decreased about QR13.6bn in June to reach QR314.8bn.
Government loans were down by QR16bn to QR155.4bn. Government institution’s loans, however, witnessed a growth by QR2.4bn to QR143.8bn. Semi-Government institutions’ loan was down by QR0.1bn to QR14.9bn.
The QCB data suggested that Qatar Government bonds and bills with banks decreased QR1.4bn to reach the level of QR128.4bn. The total domestic public debt (government, government institutions, quasi-governmental institutions, bills and bonds) decreased QR15.1bn to QR442.6 bn.
Figures of the consolidated balance sheet of the banks show that banks’ assets (and liabilities) decreased by the end of June by QR7.7bn to QR1305.8bn; compared with QR1313.5bn by the end of May but it was 10.8 percent higher than its level before June 2016.
Prior to presenting June figures, The group analysts noted, that the total profits of national banks in the first half of 2017 rose 1.9 percent to QR10.9bn compared to the situation in the corresponding period last year. The ratio of net profit to average shareholders’ equity in these banks was 7 percent compared to 5.7 percent in the corresponding period of the previous year.
The regulatory controls and available banking indicators point to the strength and robustness of the banking situation. The core capital adequacy ratio at the end of June was 15.5 percent while the minimum requirement for this ratio was 10.5 percent. The ratio of non-performing loans to total loans was only 1.5 percent, while the ratio of loan provisions to non-performing loans was 82.1 percent, i.e., almost full coverage of non-performing loans.
The total domestic private sector deposits at local banks, by the end of June, decreased by QR 21.9bn to reach the level of QR344.9bn; yet, it was still higher by about QR8bn above its level in June 2016 i.e. 2.4 percent. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR6.9bn to reach QR448.5bn. Of this, the highest share of QR137.4bn went for real estate’s sector. While, QR122.6bn credit facility went to individual’s consumer loans, QR64bn and QR62.6bn went to trade and services sectors, respectively. The non-banking financial sector accounted for QR17bn.
Qatar banks’ investments in securities outside Qatar decreased about QR2.7bn to reach the level of QR20.7bn. Local banks assets at banks outside Qatar decreased by QR8.5bn to reach QR 93.7bn. Bank loans to foreign parties increased QR0.6bn to QR 97.1bn and banks investments in foreign companies increased QR0.3bn to QR39.9bn.
In contrast, foreign banks liabilities on banks in Qatar decreased QR41.8bn to reach the level of QR192.7bn. While the indebtedness of local banks to foreign parties, in the form of bonds and certificates of deposit, settled at the level of QR48bn. The balance of foreign deposits at Qatari banks decreased QR14bn to QR170.6bn. By reconciling assets at home and abroad with liabilities, The Group analysts found that banking sector’s debt to the outside world has decreased about QR3.9bn below the level of debts in May.
