The Group Securities: Overview of Banks’ Consolidated Balance Sheet Data for May 2018

June 28, 2018

The Group Securities presents a detailed reading of banks' consolidated balance sheet figures as of May 2018, compared to the previous month of April. Figures show that banks' assets (and liabilities) decreased by QR6.8 billion to QR1346.5 billion by the end of May, compared to QR1353.3 billion by the end of April, 2.5% higher than a year earlier, which represents an increase of QR33 billion. This correction comes after a series of successive and strong climbs, and resulted in the decrease of government debt.

Government and Public Sector:

Government and public sector deposits have decreased by QR5.4 billion to QR287.8 billion. Government deposits recorded QR79.7 billion, and Government Institutions made QR179.8 billion, while the deposits of Semi-Government Institutions, in which government share is less than 100% and more than 50%, stood at QR28.3 billion. On the other hand, the total loans of the government and public sector decreased by QR1.6 billion to reach QR313.4 billion, broken down as follows:

·         Government: QR147.9 billion, down by QR1.7 billion;

·         Government institutions: QR146.9 billion, an increase of QR0.4 billion;

·         Semi-governmental institutions: QR20.3 billion, down by QR0.3 billion.

In addition to the foregoing, figures suggest that the balance of government bonds and bills increased by QR6.6 billion to QR148.3 billion. As a result, the total domestic public debt (government, government institutions and semi-government institutions, as well as bonds, bills and sukuk) climbed by QR5 billion to QR461.7 billion.

Private Sector:

The total domestic private sector deposits at local banks decreased by about QR1.1 billion to QR346.2 billion, by the end of May. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR4 billion to QR488 billion; out of which QR145.4 billion for the real estate sector (a decrease of QR1.3 billion), QR127.1 billion for individuals’ consumer loans (up by QR0.85 billion), QR81.9 billion for services (up by QR3.4 billion) and QR69.6 billion for trade (up by QR0.6 billion). In addition, there were loans and facilities amounting to QR17.1 billion for the non-banking financial sector.

Foreign Sector:

Commercial banks' investments in securities outside Qatar declined by QR0.6 billion to QR17.5 billion, and their assets at foreigner banks decreased by QR5.4 billion to QR77.9 billion. Local banks' loans to foreign parties dropped by QR1.6 billion to QR87.8 billion, and their investments in foreign companies decreased by about QR0.2 billion to QR39.9 billion. Moreover commercial banks' other assets outside the country remained unchanged at about QR3.9 billion.

In contrast, foreign banks deposits from local banks decreased by QR6.5 billion to QR202.6 billion. Domestic banks' foreigner debt, in the form of bonds and certificates of deposit, increased by QR1.8 billion to QR50.4 billion. The balance of foreign deposits at Qatari banks decreased by QR4.7 billion to QR142 billion.

By comparing domestic and foreign assets with liabilities, we deduce that net liabilities of the banking sector to foreigner entities increased by QR4.7 billion by the end of May to QR176.6 billion.