(MENAFN- The Peninsula) The Qatar banks' loan book increased by 4.9 percent and the deposits inched up by 0.3 percent month-on-month (MoM) in December 2014. The loan book was up 13.1 percent year-on-year (YoY) and deposits rose by 9.6 percent YoY.
Private sector pushed total credit growth up 4.2 percent MoM (up 20.4 percent YoY for 2014). Moreover, deposits gained by 0.3 percent MoM taking the overall 2014 growth to 9.6 percent. Thus, the loan-to-deposit ratio (LDR) grew to 109 percent as against 105 percent at the end of 2013, QNB Financial Services (QNBFS) monthly banking sector update noted yesterday.
The public sector deposits decreased by 6.8 percent MoM (down 0.9 percent in 2014) for the month of December 2014. Delving into segment details, the government institutions' segment declined by 8.1 percent MoM (+4.2 percent in 2014). Moreover, the semi-government institutions' segment posted a modest decline of 0.9 percent MoM (up 4.8 percent in 2014). Furthermore, the government segment decreased by 7.6 percent MoM (down 13.2 percent in 2014). On the other hand, private sector deposits increased by 4.1 percent MoM (+14.1 percent in 2014).
On the private sector front, the companies & institutions' segment increased by 7.3 percent MoM (+17.1 percent in 2014) while the consumer segment posted a modest growth of 1.1 percent MoM (up 11.3 percent in 2014). Non-resident deposits grew by 13.1 percent MoM (+43.3 percent in 2014).
The overall loan book posted a strong performance. Total domestic public sector loans increased by 5.8 percent MoM (still down 2.6 percent in 2014). The government segment's loan book went up by 26.2 percent MoM (reversed its downward trend and posted a 14.5 percent increase in 2014). Moreover, the government institutions' segment grew by 5.6 percent MoM and is still down 7.9 percent in 2014. However, the semi-government institutions' segment declined by 22.1 percent MoM (down 7.4 percent in 2014). Hence, the government and government institutions pushed the overall loan book up for the month of December 2014.
Private sector loans gained by 4.2 percent MoM and are up 20.4 percent in 2014. Real Estate followed by Consumption & Others and services positively contributed toward the loan growth. Real Estate increased by 5.9 percent MoM. Consumption & Others increased by 4.1 percent MoM. Services increased by 5.0 percent MoM.
Overall for 2014, consumption & others followed by General Trade and Services were the biggest contributors to the loan book growth. Consumption & Others increased by 22.2% in 2014. General Trade grew by 34.0 percent in 2014. Services segment grew by 21.3 percent in 2014. On the other hand, the Industry segment only witnessed a 5.7 percent YoY increase in 2014.
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