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

 

September 19, 2017

 

 

The Group Securities Company presents a detailed reading of the changes that took place in banks consolidated balance sheet in August 2017, compared to the situation at the end of last July, 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) had increased by the end of August by QR 14.9 billion to reach the level of QR 1317.9 billion; compared with QR 1302.9 billion by the end of July and by that it was higher than its level before one year in August 2016 by about QR 148.8 billion by the rate of 12.7%.

 

Prior to presenting figures of August, we note that the total profits of national banks in the first half of 2017 rose 1.9% to QR 10.9 billion compared to the situation in the corresponding period last year. The ratio of net profit to average shareholders' equity in these banks was 7% compared to 5.7% in the corresponding period of the previous year.
 
The regulatory controls and available banking indicators point to the strength and robustness of the banking situation. The ratio of loan provisions to non-performing loans was 82.1%, i.e., almost full coverage of non-performing loans.

 

Government and the Public Sector:          

Government and public sector deposits increased by around QR 15.5 billion to reach the level of QR 295.4 billion, broken down as follows: QR 101.2 billion for government; QR 163.8 billion for government institutions; and QR 30.4 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 4.8 billion to reach QR 334 billion, broken down as follows:

 

·         Government: QR 172.3 billion, up QR 3.3 billion;  

·         Governmental institutions: QR 146.2 billion with an increase of QR 1.1 billion;        

·         Semi - Governmental institutions: QR 15.5 billion, up QR 0.4 billion.

 

In addition to the foregoing; the balance of Qatar Government bonds and bills with banks settled at the level of QR 128.5 billion. The total domestic public debt (government, government institutions, quasi-governmental institutions, bills and bonds) increased QR 15.2 billion to reach the level of QR 457.7 billion.

 

The Private Sector: 

The total domestic private sector deposits at local banks, by the end of August decreased by QR 2.5 billion to reach the level of QR 338.4 billion; yet, it was still higher by about QR 0.4 billion above its level before one year in August 2016 i.e. annual development rate of 0.12%. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR 3.4 billion to reach QR 453.5 billion; out of which QR 139.7 billion for real estate’s sector, QR 123 billion for individual’s consumer loans, QR 64.5 billion for trade and QR 63.2 for services. There were also loans and facilities worth QR 17.7 billion for the non-banking financial. 

 

Foreign Sector:

Banks investments in securities outside Qatar settled at the level of QR 20.2 billion. Local banks assets at banks outside Qatar decreased by QR 13.4 billion to reach QR 70.5 billion. Bank loans to foreign parties decreased QR 0.5 billion to reach the level of QR 94.9 billion and banks investments in foreign companies increased QR 0.2 billion to reach the level of QR 40.1 billion.

 

In contrast, foreign banks liabilities on banks in Qatar decreased QR 10.1 billion to reach the level of QR 169.8 billion.  The indebtedness of local banks to foreign parties, in form of bonds and certificates of deposit, increased QR 1.1 billion to reach the level of QR 48.5 billion. The balance of foreign deposits at Qatari banks decreased QR 8.2 billion to QR 149 billion. 

 

By reconciling assets at home and abroad with liabilities, we find that banking sector's debt to the outside world has decreased in August about QR 3.4 billion below the level of debts in July to reach QR 141.6 billion.