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

Banks assets up 21% in August

Increase of total facilities provided to the private sector to QR511.8 billion

 October 25, 2018

The Group Securities presents a detailed reading of banks' consolidated balance sheet figures as of September 2018, compared to the previous month of August. Figures show that banks' assets (and liabilities) increased by QR21 billion to QR1404 billion by the end of September, compared to QR1382.9 billion by the end of August, but remains 5% higher than a year earlier, which represents an increase of QR67 billion.

Government and Public Sector:

Government and public sector deposits have increased by about QR4.8 billion to QR292.1 billion. Government deposits recorded QR96.3 billion, and Government Institutions made QR164.1 billion, while the deposits of Semi-Government Institutions, in which government share is less than 100% and more than 50%, stood at QR27.1 billion. On the other hand, the total loans of the government and public sector increased by QR16.7 billion to reach QR339.7 billion, broken down as follows:

·         Government: QR171.8 billion, up by QR15.9 billion;

·         Government institutions: QR148.7 billion, an increase of QR1.1 billion;

·         Semi-governmental institutions: QR19.2 billion, down by QR0.3 billion.

In addition to the foregoing, figures suggest that the balance of government bonds and bills increased by QR2.2 billion to QR143.1 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 QR16.7 billion to QR482.8 billion.

Private Sector:

The total domestic private sector deposits at local banks decreased by about QR4.6 billion to QR343.9 billion, by the end of September. Total domestic loans and credit facilities provided by banks to the local private sector increased by QR6 billion to QR511.8 billion; out of which QR148.2 billion for the real estate sector (an decrease of QR0.3 billion), QR128.9 billion for individuals’ consumer loans (down by QR0.4 billion), QR99.9 billion for services (up by QR6.1 billion) and QR71.1 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.

Foreign Sector:

Commercial banks' investments in securities outside Qatar stood still at QR17.5 billion, and their assets at foreigner banks decreased by QR15.5 billion to QR78.3 billion. Local banks' loans to foreign parties dropped by QR0.6 billion to QR83.2 billion, and their investments in foreign companies increased by about 0.3% to QR39.9 billion. Moreover commercial banks' other assets outside the country stood still at QR4 billion.111

In contrast, foreign banks deposits from local banks decreased by QR5.1 billion to QR206.4 billion. Domestic banks' foreigner debt, in the form of bonds and certificates of deposit, increased by QR0.5 billion to QR53.2 billion. The balance of foreign deposits at Qatari banks climbed by QR0.7 billion to QR160 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 September increased by QR11.7 billion, to QR208.9 billion.