Satyendra Pathak
Doha
The Qatar banking sector demonstrated robust growth in November 2024, with total assets rising by 1.2 percent month-on-month (MoM) and 3.1 percent year-to-date (YTD), reaching an impressive QR2.031 trillion. According to a report released by QNB Financial Services (QNBFS) on Monday, this expansion highlights the resilience of the financial sector amidst evolving market conditions.
The loan book experienced a 0.3 percent MoM increase, bringing the YTD growth to 6 percent. Deposits also showed a positive trend, growing by 0.4 percent MoM and 5.7 percent YTD. This simultaneous growth in loans and deposits resulted in a marginal decline in the loan-to-deposit ratio (LDR), which fell to 131 percent from 131.1 percent in October 2024, reflecting balanced liquidity management.
Private sector loans were the primary drivers of the overall loan book growth, with a 0.9 percent MoM increase and a 4.8 percent rise YTD. Real estate loans surged by 1.8 percent MoM and 10.5 percent YTD, accounting for approximately 21 percent of private sector loans.
The consumption and other category rose by 1.2 percent MoM and 0.4 percent YTD, representing about 20 percent of private sector loans. Loans to the services sector grew by 0.6 percent MoM and 4.9 percent YTD, contributing 32 percent to private sector lending, while general trade loans increased by 0.6 percent MoM and 5.9 percent YTD, comprising 22 percent of the segment.
Public sector loans, however, recorded a 1.1 percent MoM decline despite a strong 7.5 percent YTD growth. The contraction was mainly attributed to a 3.6 percent MoM drop in government segment loans, although this segment achieved a 12.8 percent increase YTD. Loans to government institutions remained stable with a slight MoM decrease and a 6.7 percent YTD rise, while semi-government institutions saw a marginal MoM decline and a 9.1 percent decrease YTD.
Deposits from non-residents continued their upward trajectory, increasing by 1.4 percent MoM and 10.8 percent YTD, now making up 19.0 percent of total deposits compared to 18.2 percent at the end of 2023. Private sector deposits also grew by 0.4 percent MoM and 2.2 percent YTD. Within this category, deposits from companies and institutions rose by 0.5 percent MoM, though they recorded a 3.8 percent decline YTD, while consumer deposits increased by 0.3 percent MoM and 7.5 percent YTD.
Public sector deposits witnessed a slight 0.2 percent MoM decline, though they maintained a robust 7.8 percent YTD growth. The government segment saw a 0.6 percent MoM decrease but achieved a significant 25.4 percent YTD increase. Semi-government institution deposits fell by 0.4 percent MoM and 10.3 percent YTD, while government institution deposits recorded a marginal 0.1 percent MoM increase and a 3.9 percent YTD growth.
Loan provisions remained steady at 4.2 percent in November 2024, reflecting a cautious approach to managing potential risks, particularly for Stage 2 and Stage 3 loans in the contracting and real estate sectors. Liquidity also showed improvement, with liquid assets to total assets rising to 29.8 percent in November from 29.3 percent in October, underscoring the sector’s strong financial position.
The performance of Qatar’s banking sector in November 2024, as highlighted in the QNBFS report, showcases its steady growth and prudent financial management.
