Posted on March 23, 2015

The loan book grew by 1.7% MoM (flattish YTD) after receding by 1.4% MoM in January 2015. Deposits followed suit and gained by 2.4% MoM (flattish YTD) in the month of February 2015. Public sector drove total credit growth with a gain of 1.5% MoM (down 5.7% YTD). Moreover, public sector deposits expanded by 5.2% MoM (down 1.0% YTD). Thus, the LDR stood at 109% vs. 110% at the end of January.

The public sector deposits increased by 5.2% MoM for the month of February 2015. Delving into segment details, the government institutions’ segment (represents ~64% of public sector deposits) expanded by 12.8% MoM (+11.6% YTD). On the other hand, the government segment contracted by 11.4% MoM (down 31.7% YTD) after dropping by 22.9% in January 2015. Moreover, the semi-government institutions’ segment posted flat performance. On the other hand, private sector deposits receded by 0.5% MoM (down 1.1% YTD). On the private sector front, the companies & institutions’ segment decreased by 3.2% MoM (down 4.7% YTD) while the consumer segment climbed up by 2.2% MoM (+2.6% YTD). Non-resident deposits grew by 9.1% MoM (+13.7% YTD).

QNB Financial Services monthly 2 [].jpgThe overall loan book rebounded and posted healthy performance. Total domestic public sector loans increased by 1.5% MoM (down 5.7% YTD) vs. drop of 7.1% MoM in January 2015. The government segment’s loan book expanded by 11.8% MoM (down 14.5% YTD) after dropping by 23.6% in January. Moreover, semi-government institutions’ segment also grew by 3.2% MoM (down 0.5% YTD). However the government institutions’ segment (represents ~62% of public sector loans) declined by 2.5% MoM (down 2.7% YTD. Hence, the government and semi-government sub-segments pushed the overall loan book up for the month of February 2015.

QNB Financial Services monthly 3 [].jpgPrivate sector loans exhibited flattish performance MoM (up 1.6% YTD). Consumption & Others followed by Contractors positively contributed toward the loan growth. Consumption & Others (contributes ~30% to private sector loans) increased by 2.3% MoM. Contractors (contributes ~9% to private sector loans) increased by 2.8% MoM. On the other hand, Real Estate (contributes ~26% to private sector loans) decreased by 2.2% MoM.

Overall for 2014, Consumption & Others followed by General Trade and Services were the biggest contributors to the loan book growth. Consumption & Others increased by 22.2% in 2014. General Trade grew by 34.0% in 2014. Services segment grew by 21.3% in 2014. On the other hand, the Industry segment only witnessed a 5.7% increase.