The Group Securities Review of Banks Consolidated Balance Sheet Data of December 2016

 

January 23, 2017

 

 

 

Assets (and liabilities) increase QR 69 billion to QR 127.8 billion

 

Government and public sector deposits increase about QR 8.1 billion to QR 185.9 billion

 

Total domestic public debt rise about QR 29.6 billion to QR 427.8 billion

 

 Domestic private sector's credit increases by about QR 10.8 billion to QR 438.8 billion

 

Domestic private sector deposits increase about QR 4 billion to reach QR 347.7 billion

 

 

 

The Group Securities Company presents a detailed reading of the changes that took place in banks consolidated balance sheet in December, compared to the situation at the end of last November, as such data helps to understand the situation of the domestic liquidity. Figures of the consolidated balance sheet, which have been recently posted on Qatar Central Bank website, shows that banks' assets (and liabilities) increased by the end of December by QR 69 billion to reach the level of QR 1271.8 billion; compared with QR 1202.8 billion by the end of November. In its reading, The Group focuses on explaining changes in the position of   the key players: Qatar Central Bank (QCB), the Government, Public Sector, Private Sector, external sector, and the interbank sector.

 

 

 

Qatar Central Bank 

Total banks' deposits at Qatar Central Bank increased by QR 1.1 billion to the level of QR 38.7 billion, broken down as follows:

·         QR 33 billion as the obligatory reserve balance, note that this reserve is set by QCB at the rate of 4.75% of the total customers' deposits at each bank. The obligatory reserve is deposited permanently and with no interest.

·         QR 5.79 billion as banks free balances at QCB.  

 

Government and the Public Sector:          

Government and public sector deposits increased by around QR 8.1 billion to reach the level of QR 185.9 billion, broken down as follows: QR 64.3 billion for government; QR 93.3 billion for government institutions; and QR 28.3 billion for semi-governmental institutions, in which government share is less than 100% and more than 50%. On the other hand, government and the public sector's total loans increased to reach QR 293.9 billion, broken down as follows:

·         Government: QR 138.7 billion, up by QR 14.5 billion;  

·         Governmental institutions: QR 139.4 with a decrease of QR 0.7 billion;        

·         Semi - Governmental institutions: QR 15.8 billion, with an increase of QR 2.9 billion.

In addition to the foregoing; the balance of Qatar Government bonds and bills with banks increased about QR 13 billion to reach the level of QR 133.9 billion. The total domestic public debt (government, government institutions, quasi-governmental institutions, bills and bonds) increased QR 29.7 billion to reach the level of QR 427.8 billion, as shown in the above infographic.

 

The Private Sector: 

The total domestic private sector deposits at local banks, by the end of December, increased by QR 4 billion to reach the level of QR 347.7 billion; in addition to deposits worth QR 10 billion by non-banking financial institutions. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR 10.8 billion to reach QR 488.6 billion; out of which QR 129.5 billion for real estate’s sector, QR 120 billion for individual’s consumer loans and QR 64.7 billion for trade. There were also loans and facilities worth QR 16.2 billion for the non-banking financial, sector as shown in the above infographic.

 

Foreign Sector:

Banks investments in securities outside Qatar settled at the level of QR 18.5 billion, broken down as follows: QR 14.7 billion bonds and Sukuk, QR3.8 billion shares and others. Local banks assets at banks outside Qatar increased by QR 32.1 billion to reach QR 114.1 billion. Bank loans to foreign parties increased QR 1.4 billion to reach the level of QR 95.4 billion and banks investments in foreign companies increased QR 0.9 billion to QR 40 billion. In contrast, foreign banks liabilities on banks in Qatar increased QR 415.8 billion to reach the level of QR 192.5 billion.  While the indebtedness of local banks to foreign parties, in form of bonds and certificates of deposit, increased QR0.3 billion to the level of QR 49.1 billion. The balance of foreign deposits at Qatari banks increased QR 36.4 billion to QR 183.2 billion. By reconciling assets at home and abroad with liabilities, we find that banking sector's debt to the outside world has increased QR 2.3 billion above the level of debts in November to reach QR 156.8 billion in December.