Posted on December 20, 2014

Review and Outlook

The loan book decreased by 0.1% MoM (up 7.8% YTD) while deposits increased by 1.2% MoM (+9.3% YTD) in the month of November 2014. Public sector pulled total credit growth down (down 2.4% MoM in November), as private sector posted  a healthy growth of 1.5% MoM. Moreover, deposits gained by 1.2% MoM (deposits were flat MoM in the month of October). Thus, the LDR declined to 104% vs. 105% in October.

QNB Financial Services monthly 2 [qatarisbooming.com].jpgThe public sector deposits increased by 0.1% MoM (+6.4% YTD 2014) for the month of November 2014. Delving into segment details, the government institutions’ segment (represents ~58% of public sector deposits) improved by 1.8% MoM (+13.4% YTD 2014). Moreover, the semi-government institutions’ segment posted a growth of 5.7% MoM (up 5.8% YTD 2014). However, the government segment decreased by 6.3% MoM (down 6.0% YTD). On the other hand, private sector deposits increased by 0.4% MoM (+9.6% YTD 2014). On the private sector front, the companies & institutions’ segment increased by 1.0% MoM (+9.1% YTD 2014) while the consumer segment posted a decline of 0.1% MoM (up 10.0% YTD). Non-resident deposits drove the growth MoM (+15.1% MoM and +26.8% YTD).  

QNB Financial Services monthly 3 [qatarisbooming.com].jpgThe overall loan book posted a flat performance. Total domestic public sector loans decreased by 2.4% MoM (also down 7.9% YTD). The government segment’s loan book went down by 10.7% MoM (also down 9.3% YTD 2014). Moreover, the government institutions’ segment (represents ~60% of public sector loans) declined by 1.1% MoM and is down 12.8% YTD. However, the semi-government institutions’ segment grew by 6.6% MoM (+18.8% YTD). Hence, the government and government institutions pulled the overall loan book down for the month of November 2014.

Private sector loans gained by 1.5% MoM and are up 15.5% YTD. General Trade followed by Services and Contractors positively contributed toward the loan growth. On the other hand, the Real Estate sector pulled credit growth down in the month of November 2014. General Trade (contributes ~14% to private sector loans) increased by 4.9% MoM. Services (contributes ~18% to private sector loans) increased by 3.4% MoM (+15.6% YTD). Contractors (contributes ~9% to private sector loans) increased by 2.1% MoM. However, Real Estate segment (contributes ~26% to private sector loans) declined by 0.5% MoM (+5.2% YTD). Overall, the segments representing General Trade (+33.3% YTD) and Contractors (+25.6% YTD) are the best performing segments in the private sector YTD. On the other hand, the Industry segment is flattish YTD. 

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