(MENAFN- The Peninsula) The Qatar Central Bank's (QCB) total assets/liabilities increased sharply to QR213bn from QR161.2bn during 2012-2013, an increase of QR51.8bn, or 32.1 percent. Consequently, the size of QCB's balance sheet, as a proportion of nominal GDP, increased to 28.9 percent at the end of 2013 from 23.3 percent at end-2012.
On the liability side, the expansion was mainly attributed to the sharp increase due to the Government (by QR35.8bn) as well as unclassified liabilities (by QR16.8bn). Deposits of local banks declined significantly by QR7.3bn (-53.9 percent) in 2013.
On the asset side, the increase was primarily reflected in the sharp increase in QCB's holding of balances with foreign banks by QR30.8bn (92.4 percent). QCB's balances with local banks also increased by QR18.9bn (46.9 percent), while gold holding of the QCB declined by QR0.24bn (10 percent) during the year, as a result of gold price decrease in the international market.
QCB's 37th annual report released yesterday noted the year 2013 witnessed significant increase in the Central Bank's holding of balances with foreign banks. QCB's net international reserves increased significantly during 2013. Consequently, the official reserves to currency issued ratio increased to 1229 percent in 2013, which is much above the prescription of 100 percent.
The key balance sheet indicators show that unlike 2012, credit growth of commercial banks was significantly lower than deposit growth during 2013. The growth in bank credit almost halved to 13.1 percent in 2013 reflecting significant reduction in credit offtake by the public sector. The deceleration in public sector credit growth was reflective of both streamlining of infrastructure investments and the base effect of strong growth in the previous year.
Private sector credit growth, on the other hand, remained stable at 13.5 percent in line with the ongoing diversification of the economy. Within the private sector, growth in credit to trade and industry was lower than the previous year, while that to services, contractors, and consumption was higher. On the other hand, credit to real estate and 'others' sector recorded a decline during 2013.
In the combined balance sheet of commercial banks, domestic credit is the largest asset with QR533.1bn as of the end of 2013. Share of domestic credit is 58.6 percent of total assets by the end of the year. Annually domestic credit increased by 11.8 percent in 2013.
Loans to the real estate are one of the major private sector lending businesses for commercial banks with outstanding credit of QR85.4bn as of the end of the year. This is a drop of 0.2 percent compared to past year. The demand for real estate loans is significant in Qatar and commercial banks are exploring the opportunity by building up credit portfolios in real estate sector. The consumption loan, which includes personal loan, vehicle loans, credit card loans, etc, was also increased due to the spur in new population arrival. Credit to consumption accounted QR80.2bn in 2013, an increase of 12.9 percent against past year.
Public revenues continued to grow during 2013-2014 for the third year in row, despite a limited decrease in oil price to $104.44 from $107.12 bpd in the previous year. Oil and gas revenues, rose by 9.9 percent and about QR17.7bn, to reach QR195.2bn compared with QR177.6bn in the FY 2012-2013. However, their relative importance in total revenue has declined during the FY 2012-2013 by six percentage points to 56.3 percent compared to 62.4 percent in the previous year.
On the other hand, investment income strongly increased during the report year by QR61.1bn, or a rate of 146.1 percent to reach QR102.9bn compared to QR41.8bn in FY 2012-2013, after the decline experienced over the past two years, raising its relative importance to the total public revenues to 29.7 percent from 14.7 percent in the FY 2012-2013.
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