The Banking Executive Magazine - February 2025 Issue

Credit facilities extended by local banks increased by 1.9% during Jan- uary to reach QR1,372.5bn. Loans rise in January was mainly due to a jump by 5.3% in the public sector, according to QNB Financial Serv- ices. Qatar’s banking sector kicked off the year on a “positive note” with loan book and deposits making good gains in January, according to QNB Financial Services (QNBFS). Credit facilities extended by local banks increased by 1.9% during Jan- uary to reach QR1,372.5bn. The loans rise in January was mainly due to a jump by 5.3% in the public sec- tor. Loans went up by 4.6% in 2024, compared to a growth of 2.5% in 2023, growing by an average 5.4% over the past five years (2020-2024) Loan provisions to gross loans was marginally lower at 3.8% in January, compared to 3.9% in December 2024. Deposits went up by 1.3% during January to reach QR1,040.0bn. The deposits gain in January 2025 was mainly due to a surge by 1.5% in private sector deposits and a rise by 1% in public sector deposits. Deposits increased 4.1% in 2024, compared to a decline by 1.3% in 2023, growing by an average 3.9% over the past five years (2020-2024). Total assets edged lower by 0.3% during January to QR2.040tn, QNBFS data reveal. The total assets slide in January was mainly due to a decline by 2.3% in foreign assets and a 8.4% drop in re- serves. Total assets gained by 3.9% in 2024, compared to a growth of 3.4% in 2023; assets grew by an average 5.7% over the past five years (2020- 2024). Liquid assets to total assets moved lower to 30.2% in January, com- pared to 31.3% in December 2024, which still remains in a healthy posi- tion. Loan provisions to gross loans edged lower to 3.8% in January, compared to 3.9% in December 2024. Loan provisions have increased from 2.3% in 2019 to 3.9% in 2024 and 3.8% (as at January) as banks have been provisioning for Stage 2 and Stage 3 loans mainly emanating from contracting and real estate sectors. The overall loan book gained (by 1.9%) in January, pushed higher mainly by public sector loans, QNBFS noted. Total public sector loans rose by 5.3% MoM (+5.0% in 2024) in Janu- ary. The government segment (repre- sents 31% of public sector loans) was the main driver for the public sector gain with a jump by 13.3% (+3.6% in 2024), while the government insti- tutions’ segment (represents 65% of public sector loans) moved up by 2.2% MoM (+7.7% in 2024). However, the semi-government insti- tutions segment was marginally lower by 0.2% MoM (-18.0% in 2024) during January, QNBFS noted. the BANKING EXECUTIVE 42 ISSUE 194 FEBRUARY 2025 Qatar’s Banking Sector KICKS OFF 2025 ON 'POSITIVE NOTE'; LOAN BOOK, DEPOSITS MAKE GOOD GAINS IN JANUARY