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.
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