(MENAFN- The Peninsula) Qatar banks' loan book increased by 4 percent month-on-month, while deposits increased by 1.9 percent in the month of September 2014. Public sector drove the strong growth in the overall loan book.
The deposits increased by 1.9 percent; thus increasing the loan-to-deposit ratio (LDR) to 107 percent against 105 percent in August," QNB Financial Services monthly banking sector update noted yesterday.
"Going forward, we expect increased activity in the sector. We continue to expect improvement in the public sector, in addition to large corporate loan growth to be the primary drivers of the overall loan book in 2014 followed by the SMEs and consumer lending. Our view is based on the expected uptick in project mobilizations in the coming months", the QNB analysts said.
Public sector posted a strong performance in September. The public sector deposits increased by 7.8 percent MoM (+9.9 percent YTD 2014) for September 2014. Delving into segment details, the government institutions' segment improved by 2.1 percent (+10.8 percent YTD 2014). Moreover, the semi-government institutions' segment posted a growth of 12.8 percent (down 9.1 percent YTD 2014). In addition, the government segment increased by 16.5 percent (+18.6 percent YTD). On the other hand, private sector deposits declined by 2.3 percent (+8 percent YTD 2014). On the private sector front, the companies and institutions' segment decreased by 5 percent (+7 percent YTD 2014) while the consumer segment posted flat performance, up 0.4 percent and 8.9 percent YTD 2014.
The overall loan book increased by 4 percent, a 0.8 percent growth in August 2014. Total domestic public sector loans grew by 3.9 percent to recover lost ground (flat YTD). The government segment's loan book grew by 23 percent (up 22.1 percent YTD 2014). However, the government institutions' segment declined by 2.3 percent and is down 10.5 percent YTD. Furthermore, the semi-government institutions' segment declined by 1.6 percent (+12.0 percent YTD). Hence, the government institutions and semi-government segment pulled the overall growth down for the month of September 2014.
Private sector loans gained by 2.4 percent and are up 13.5 percent YTD. Consumption and others increased by 1.7 percent (+15.8% YTD). Furthermore, the real estate segment grew by 2.1 percent (+3.5 percent YTD). However, services segment posted a decline of 1.8 percent but is still up 20.5 percent in the first nine months of 2014.
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