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

Significant Decrease in Government and Public Sector Loans

August 28, 2018

The Group Securities presents a detailed reading of banks' consolidated balance sheet figures as of July 2018, compared to the previous month of June. Figures show that banks' assets (and liabilities) decreased by QR4.9 billion to QR1387.3 billion by the end of July, compared to QR1392.2 billion by the end of June, but remains 6.4% higher than a year earlier, which represents an increase of QR84.4 billion.

Government and Public Sector:

Government and public sector deposits have decreased by QR21.7 billion to QR291.6 billion. Government deposits recorded QR79.5 billion, and Government Institutions made QR187.4 billion, while the deposits of Semi-Government Institutions, in which government share is less than 100% and more than 50%, stood at QR28.5 billion. On the other hand, the total loans of the government and public sector decreased by QR9.1 billion to reach QR320.9 billion, broken down as follows:

·         Government: QR154.1 billion, down by QR9.3 billion;

·         Government institutions: QR147 billion, a decrease of QR0.1 billion;

·         Semi-governmental institutions: QR19.8 billion, up by QR0.5 billion.

In addition to the foregoing, figures suggest that the balance of government bonds and bills decreased by QR9.7 billion to QR143.6 billion. As a result, the total domestic public debt (government, government institutions and semi-government institutions) as well as bonds, bills and sukuk dropped by QR18.8 billion to QR464.5 billion.

Private Sector:

The total domestic private sector deposits at local banks increased by about QR7.9 billion to QR350.8 billion, by the end of July. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR4 billion to QR503.4 billion; out of which QR148.5 billion for the real estate sector (an increase of QR0.5 billion), QR128.7 billion for individuals’ consumer loans (down by QR0.2 billion), QR92.7 billion for services (up by QR4.4 billion) and QR70.4 billion for trade (down by QR0.1 billion). In addition, there were loans and facilities amounting to QR13.9 billion for the non-banking financial sector (an increase of QR0.1 billion).

Foreign Sector:

Commercial banks' investments in securities outside Qatar stood still at QR17.5 billion, and their assets at foreigner banks increased by QR15.1 billion to QR93.8 billion. Local banks' loans to foreign parties dropped by QR2 billion to QR83.8 billion, and their investments in foreign companies stabilized at QR39.6 billion. Moreover commercial banks' other assets outside the country stood still at QR4 billion.

In contrast, foreign banks deposits from local banks increased by QR7.9 billion to QR 211.5 billion. Domestic banks' foreigner debt, in the form of bonds and certificates of deposit, increased by QR0.5 billion to QR52.7 billion. The balance of foreign deposits at Qatari banks climbed by QR9.2 billion to QR159.3 billion.

By comparing domestic and foreign assets with liabilities, we deduce that net liabilities of the banking sector to foreigner entities by the end of July increased by QR9.5 billion, to QR184.8 billion.