The Group Securities: Overview of Banks’ Consolidated Balance Sheet Data for December 2017

January 24, 2018

The Group Securities presents a detailed reading of banks' consolidated balance sheet figures as of December 2017, compared to the previous month of November. Figures show that banks' assets (and liabilities) increased by QR40.9 billion to QR1363.6 billion by the end of December, compared to QR1332.7 billion by the end of November, 4.8% higher than a year earlier, which represents an increase of QR60.9 billion.

Government and Public Sector:

Government and public sector deposits have increased by QR7.4 billion to QR315.4 billion. Government deposits recorded QR97.1 billion, while the deposits of government institutions settled at QR188.8 billion. The deposits of semi-government institutions, in which government share is less than 100% and more than 50%, stood at QR29.5 billion. On the other hand, the total loans of the government and public sector decreased by QR9.2 billion to reach QR341.7 billion, broken down as follows:

·         Government: QR175.6 billion, down by QR8.9 billion;

·         Government institutions: QR146.2 billion, same as the previous month;

·         Semi-governmental institutions: QR19.9 billion, a drop of QR0.3 billion.

In addition to the foregoing, figures suggest that the balance of government bonds and bills increased by QR14 billion to QR156.5 billion. As a result, the total domestic public debt (government, government institutions and semi-government institutions, as well as bonds, bills and sukuk) increased by QR5.2 billion to QR498.2 billion.

Private Sector:

The total domestic private sector deposits at local banks increased by QR8.2 billion to QR356.5 billion, by the end of December, which is QR8.8 billion higher than a year ago in December 2016, this translates to an annual growth rate of 2.5%. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR0.5 billion to QR461.5 billion; out of which QR145.7 billion for the real estate sector, QR123.4 billion for individuals’ consumer loans, QR64.5 billion for trade and QR63.6 billion for services. In addition, there were loans and facilities amounting to QR17.5 billion for the non-banking financial sector.

Foreign Sector:

Commercial banks' investments in securities outside Qatar dropped by QR0.4 billion to QR18.4 billion, while their assets at foreigner banks increased by QR10 billion to QR77.3 billion. Local banks' loans to foreign parties decreased by QR1.3 billion to QR90.5 billion, as well as their investments in foreign companies by QR0.2 billion to QR40 billion. Other assets outside the country increased by about QR0.5 billion to reach QR4.3 billion.

In contrast, foreign banks deposits from local banks dropped by QR2.4 billion to QR174.3 billion. Domestic banks' foreigner debt, in the form of bonds and certificates of deposit, increased by QR0.4 billion to QR46.7 billion. The balance of foreign deposits at Qatari banks rose by QR2.2 billion to QR137.1 billion.

By comparing domestic and foreign assets with liabilities, we deduce that net liabilities of the banking sector to foreigner entities decreased by QR8.4 billion by the end of December to QR128 billion.