Posted on August 23, 2015

Review and Outlook

The loan book exhibited flat performance in July 2015 (+6.8 YTD) after increasing by 3.5% MoM in June. On the other hand, deposits receded by 3.1% MoM (+3.8 YTD) in the month of July 2015. Public sector restrained total credit growth with a decline of 2.6% MoM (down 6.9% YTD) vs. a gain of 3.4% MoM in June. Moreover, public sector deposits contracted by 10.8% MoM (down 10.8% YTD). As such, the LDR jumped to 112% vs. 108% at the end of June.

The public sector deposits contracted by 10.8% MoM  vs. an uptick of 1.1% MoM in June. Delving into segment details, the government segment contracted by 20.8% MoM (down 24.7% YTD) after gaining by 5.8% MoM in June (dropping by 6.0% and 6.9% in May and April 2015, respectively). Moreover, the semi-government segment followed suit and declined by 18.8% MoM (down 16.8% YTD). Furthermore, the government institutions’ segment (represents ~62% of total public deposits) also posted weak performance, sliding by 4.1% MoM (down 2.6% YTD). On the Private sector front, the companies & institutions’ segment climbed up by 1.5% MoM (+ 22.0% YTD). On the other hand, the consumer segment declined by 1.2% MoM (down 7.2% YTD). Non-resident deposits increased by 5.6% MoM (+48.8% YTD). 

QNB Financial Services monthly 2 [qatarisbooming.com].jpgThe overall loan book showcased flat performance in July. Total domestic public sector loans declined by 2.6% MoM (down 6.9% YTD) vs. a gain of 3.4% MoM in June 2015. The government segment’s loan book contracted by 11.5% MoM (down 18.2% YTD) vs. a strong increase of 17.0% in June. On the other hand, the government institutions’ segment (represents ~63% of public sector loans) inched up by 0.6% MoM (down 1.9% YTD) after exhibiting negative performance in June (down 1.0% MoM). Moreover, semi-government institutions’ segment ticked up by 0.5% MoM (down 6.2% YTD). Hence, the government sub-segment restrained the growth of the overall loan book for the month of July 2015.

QNB Financial Services monthly 3 [qatarisbooming.com].jpgPrivate sector loans continued its positive trajectory growing by 2.1% MoM (+14.0% YTD). The Real Estate followed by the Contractors segments positively contributed toward the loan growth. Loans to the Real Estate segment (contributes ~28% to private sector loans) expanded by 13.9% MoM (+19.1% YTD) while Contractors (contributes ~9% to private sector loans) climbed up by 3.1% MoM (+19.0% YTD). On the other hand, Consumption & Others segment (contributes ~30% to private sector loans) declined by 4.9% MoM (+14.6% YTD). Moreover, Services (contributes ~17% to private sector loans) dipped by 1.4% MoM (+6.4% YTD).

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