The Group Securities Review of Banks Consolidated Balance Sheet Data of February 2017

After excluding the balance sheet of Qatar Development Bank whose assets are estimated at QR 9 billion.

 

April 3, 2017

  • Assets (and liabilities) increase QR 2.5 billion to QR 1264.4 billion.
  • Government and public sector deposits increase about QR 26.6 billion to QR 195.8 billion.
  • Total domestic public debt rise about QR 18.1 billion to QR 436.9 billion.
  • Domestic private sector's credit decreases by about QR 2.1 billion to QR 361.9 billion
  • Domestic private sector deposits increase about QR 5 billion to reach QR 361.9 billion

 

The Group Securities Company presents a detailed reading of the changes that took place in banks consolidated balance sheet in February 2017, compared to the situation at the end of last January, 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 February by QR 2.5 billion to reach the level of QR 1264.4 billion; compared with QR 1261.9 billion by the end of January. 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 decreased by QR 1.5 billion to the level of QR 44.3 billion, broken down as follows:

·        QR 35 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 9.39 billion as banks free balances at QCB.  

 

Government and the Public Sector:          

Government and public sector deposits increased by around QR 26.6 billion to reach the level of QR 195.8 billion, broken down as follows: QR 67.1 billion for government; QR 96.6 billion for government institutions; and QR 32.1 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 about QR 18.1 billion to reach QR 318.9 billion, broken down as follows:

·        Government: QR 165.5 billion, up by QR 17.8 billion;  

·        Governmental institutions: QR 140.1 billion with an increase of QR 0.3 billion;        

·        Semi - Governmental institutions: QR 13.3 billion, with no change.

In addition to the foregoing; the balance of Qatar Government bonds and bills with banks settled at the level of QR 118 billion with no change. The total domestic public debt (government, government institutions, quasi-governmental institutions, bills and bonds) increased QR 18.1 billion to reach the level of QR 436.9 billion, as shown in the above infographic.

 

The Private Sector: 

The total domestic private sector deposits at local banks, by the end of February, increased by QR 5 billion to reach the level of QR 361.9 billion; in addition to deposits worth QR 10.7 billion by non-banking financial institutions. Total domestic loans and credit facilities provided by banks to the local private sector decreased by QR 2.1 billion to reach QR 438.5 billion; out of which QR 131.5 billion for real estate’s sector, QR 121.4 billion for individual’s consumer loans, QR 61.3 billion for services and QR 60.9 for trade. There were also loans and facilities worth QR 15.7 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 17.94 billion, broken down as follows: QR 14.54 billion bonds and Sukuk, QR3.4 billion shares and others. Local banks assets at banks outside Qatar decreased by QR 3.6 billion to reach QR 93.6 billion. Bank loans to foreign parties decreased QR 1.5 billion to reach the level of QR 94.9 billion and banks investments in foreign companies settled at the level of QR 39.9 billion. In contrast, foreign banks liabilities on banks in Qatar decreased QR 1.8 billion to reach the level of QR 197.4 billion.  While the indebtedness of local banks to foreign parties, in form of bonds and certificates of deposit, decreased QR2.2 billion to the level of QR 49.1 billion. The balance of foreign deposits at Qatari banks decreased QR 10.6 billion to QR 185.8 billion. By reconciling assets at home and abroad with liabilities, we find that banking sector's debt to the outside world has decreased QR 9.4 billion below the level of debts in January to reach QR 186 billion.