Qatar banks stay strong in tough season
28 Oct 2017 - 2:54
By Satish Kanady / The Peninsula
The total profits of Qatari banks-excluding Al-Khalij Commercial Bank-rose 3 percent to QR16.11bn for the first nine months of 2017, from a year ago. Braving tough times, the country’s banking system is going strong, according to latest data.
The non-performing loans was only 1.5 percent of the total loans. The ratio of loan provision to non-performing loans was 82.1 percent, i.e almost full coverage of non-performing loans, The Group analysts noted in their reading of the banks’ balance sheets for the months ended September.
The banks’ assets (and liabilities) have increased by QR19bn to QR1336.8bn by the end of September from the previous month, reflecting 11.9 percent growth on year-on-year.
Government and public sector deposits were increased by around QR7.3bn to reach the level of QR 302.7bn. The breakdown shows the government deposits stood at QR105.2bn, while the government institutions’ deposit touched QR165.7bn. The semi-government institutions’ deposits reached QR31.7bn.
On the other hand, government and the public sector’s total loans decreased about QR5.1bn to reach QR328.9bn. Government loans were down by QR4.5bn to QR167.8bn as credits to the governmental institutions’ remained stable at QR146.2bn. Loans to the Semi-governmental institutions slipped by QR0.6bn to QR14.9bn.
The balance of Qatar Government bonds and bills were increased by QR17.5bn to reach the level of QR146.3bn. The total domestic public debt (government, government institutions, quasi-governmental institutions, bills and bonds) increased QR12bn to reach QR475.2bn.
The total domestic private sector deposits at local banks increased by QR3.3bn to reach QR341.7bn by the end of September showing a marginal growth of 0.26 percent from the previous month.
Total domestic loans and credit facilities provided by banks to the local private sector increased by QR0.4bn to reach QR453.9bn. Of this, QR139.3bn was facilitated to the real estate sector and QR123.9bn for individual consumer loans. The credit to the trade sector amounted to QR64.5bn and credit to the services sector stood at QR63.2bn.
Qatar banks’ investments in securities outside Qatar increased about QR0.6bn to QR 19.6bn. Local banks’ assets at banks outside Qatar increased by QR0.7bn to QR71.2bn. Bank loans to foreign parties decreased QR0.3bn to QR94.6bn and banks’ investments in foreign companies settled at the level of QR40.1bn. Other assets outside the country reached QR4.3bn. In contrast, foreign banks liabilities on banks in Qatar decreased QR0.3bn to reach the level of QR169.5bn.
The indebtedness of local banks to foreign parties, in form of bonds and certificates of deposit, increased QR3.1bn to reach QR51.4bn. The balance of foreign deposits at Qatari banks decreased QR7.8bn to QR142.8bn, in addition to other liabilities for entities abroad amounting to QR2.2bn.
By comparing assets at home and abroad with liabilities, The Group finds that net liabilities of the banking sector to the outside world decreased QR1.9bn by the end of September to QR139.7bn.