Qatar banks’ overseas private deposits post double-digit jump in July

The private sector foreign deposits soared about 23% year-on-year to QR158.92bn, or about 81% of the total deposits, in Qatar’s commercial banks in July, according to QCB data.

Qatar’s commercial banks’ overseas customer deposits were seen outpacing total deposits generation year-on-year in July 2019, according to the central bank data. Total deposits within the country’s commercial banks were up mere 0.06% year-on-year to QR814.01bn in July 2019, according to figures released by the Qatar Central Bank. Overseas deposits, on the other hand, witnessed a huge more than 23% surge to QR196.6bn; whereas domestic deposits declined about 6% to QR617.41bn in the review period. Foreign deposits accounted for 24% of the total deposits, while the remaining 76% came from the domestic sources. The private sector foreign deposits soared about 23% year-on-year to QR158.92bn, or about 81% of the total deposits, in the country’s commercial banks in July 2019. The share of public sector in overseas deposits stood at around 8%, or QR15.02bn, which was lower than that of non-banking financial institutions (QR22.66bn or 11%). The non-banking financial institutions’ overseas deposits saw a 53% growth compared to a mere about 1% rise in the public sector.

Public sector deposits saw about 13% year-on-year decline to QR266.89bn; while private sector deposits expanded about 7% to QR513.35bn. The private sector deposits constituted 63% of total deposits, public sector accounted for about 33% and the remaining was contributed by non-banking financial institutions (NBFIs). Much of the private sector deposits were in the form of savings and time (QR399.04bn) and current and call (QR114.31bn); while in the case of public sector, saving and time deposits amounted to QR230.04bn and current and call deposits at QR36.85bn.NBFI’s customer deposits stood at QR33.77bn with saving and time deposits at QR30.63bn and current and call deposits at QR3.14bn. Public sector domestic deposits amounted to QR251.87bn, private sector domestic deposits at QR354.43bn and NBFIs at QR11.11bn.

Within the domestic deposits, the services sector represented the largest contributor in absolute terms at QR221.52bn, which, however, showed about 16% year-on-year decline. The services sector accounted for about 36% of the total domestic deposits. The general services contributed QR184.09bn and financial services QR79.32bn. Much of the financial services sector deposits came from investment companies (QR51.06bn), finance companies (QR15bn), others (QR5.84bn) and insurance (QR4.08bn).However, the second largest component personal deposits registered more than 5% growth to QR190.85bn, or 31%, of the total domestic deposits. Qataris personal deposits witnessed about 4% year-on-year expansion to QR153.11bn and those of non-Qataris grew more than 12% to QR37.74bn at the end of July this year.

Government deposits witnessed a 4% year-on-year decline to QR77.31bn, which accounted for about 13% of total domestic deposits in July 2019.The deposits from the industrials amounted to QR37.77bn, which showed a yearly growth of about 3% in July 2019 and those from the trading sector stood at QR35.05bn, registering a marginal 0.17% rise year-on-year. In the case of contractors, their deposits saw a 6% decline to QR11.05bn; whereas those from the real estate saw more than 12% jump to QR5.06bn in July this year.

Sources and photo-credits: Gulf Times