Posted on June 22, 2015

Review and Outlook

The loan book exhibited flattish performance in May 2015 (+2.9 YTD) after declining by 0.5% MoM in April. On the other hand, deposits grew by 1.7% MoM (+4.9 YTD) in the month of May 2015. Public sector, once again pulled down total credit growth with a decline of 1.7% MoM (down 7.6% YTD) vs. a drop of 4.7% MoM in April. However, public sector deposits gained by 3.5% MoM (down 1.2% YTD). As such, the LDR receded to 107% vs. 109% at the end of April.

The public sector deposits rebounded by 3.5% MoM vs. a drop of 4.8% MoM in April. Delving into segment details, the government institutions’ segment (represents ~59% of public sector deposits) climbed up by 6.8% MoM (+ 2.1% YTD) after contracting by 8.3% MoM in April (dropping by 6.6% and expanding by 12.8% in March and February 2015, respectively). Moreover, the semi-government segment followed suit and expanded by 7.1% MoM (+1.9% YTD). On the other hand, the government segment posted weak performance, sliding by 6.0% MoM (down 10.2% YTD). On the Private sector front, the companies & institutions’ segment climbed up by 2.7% MoM (+ 1.3% YTD). On the other hand, the consumer segment displayed flat performance (+5.7% YTD). Non-resident deposits dipped by 2.0% MoM (+42.6% YTD). 

QNB Financial Services monthly 2 [qatarisbooming.com].jpg

The overall loan book showcased flat performance in May. Total domestic public sector loans continued its negative trajectory, declining by 1.7% MoM (down 7.6% YTD) vs. a drop of 4.7% MoM in April 2015. The government segment’s loan book contracted by 2.4% MoM (down 21.0% YTD) vs. a decline of 23.5% in April. Moreover, the government institutions’ segment (represents ~64% of public sector loans) slipped by 1.9% MoM (down 1.6% YTD) after exhibiting positive performance in April (+2.8% MoM). On the other hand, semi-government institutions’ segment exhibited flattish performance in May (down 6.4% YTD). Hence, the government sub-segment pulled the overall loan book down for the month of May 2015.QNB Financial Services monthly 3 [qatarisbooming.com].jpg

Private sector loans grew by 2.2% MoM (+9.0% YTD) vs. +1.9% MoM in April 2015. The Real Estate followed by the Contractors segments positively contributed toward the loan growth. Loans to the Real Estate segment (contributes ~26% to private sector loans) grew by 2.2% MoM (+2.4% YTD) while Contractors (contributes ~9% to private sector loans) expanded by 5.3% MoM (+13.0% YTD). Moreover, Consumption & Others segment (contributes ~31% to private sector loans) displayed flattish performance (+12.1% YTD). On the other hand, Services (contributes ~17% to private sector loans) dipped by 1.3% MoM (+4.0% YTD).

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