The loan book decreased 1.4% month-over-month in January 2015 while deposits declined 2.2%, leading the loan to deposit ratio to grow to 110%. Public sector loans and deposits both decreased substantially, with loans down 7.1% and deposits down 5.9%. Private sector loans increased 1% while deposits declined slightly by 0.6%.

1. Page 1 of 2
Review and Outlook
The loan book decreased by 1.4% MoM, it was up 13.1% YoY for full
year 2014 (FY2014) while deposits declined by 2.2% MoM (+9.6%
YoY in FY2014) in the month of January 2015. Public sector pushed
total credit down with a decline of 7.1% MoM (down 2.64% in FY2014).
Moreover, public sector deposits dropped by 5.9% MoM (down 0.9% in
FY2014). Thus, the LDR grew to 110% vs. 109% at the end of 2014.
The public sector deposits decreased by 5.9% MoM for the month
of January 2015. Delving into segment details, the government
institutions’ segment (represents ~60% of public sector deposits)
declined by 1.0% MoM (+4.2% in FY2014). Furthermore, the government
segment decreased by 22.9% MoM (down 13.2% in FY2014). However,
the semi-government institutions’ segment posted a modest growth of
4.0% MoM (up 4.8% in FY2014). On the other hand, private sector
deposits declined by only 0.6% MoM (+14.1% in FY2014). On the
private sector front, the companies & institutions’ segment decreased by
1.6% MoM (+17.1% in FY2014) while the consumer segment ticked up
by 0.4% MoM (up 11.3% in FY2014). Non-resident deposits grew by
4.3% MoM (+43.3% in FY2014).
The overall loan book posted a weak performance. Total domestic
public sector loans decreased by 7.1% MoM (down by 2.6% in FY2014).
The government segment’s loan book went down by 23.6% MoM (up
14.5% YoY in FY2014). Moreover, the government institutions’ segment
(represents ~65% of public sector loans) declined by only 0.2% MoM,
was down 7.9% YoY in FY2014. However, the semi-government
institutions’ segment declined by 3.6% MoM (down 7.4% in FY2014).
Hence, all the three sub-segments pushed the overall loan book down for
the month of January 2015.
Private sector loans gained by 1.0% MoM (up 20.4% YoY in FY2014).
Real Estate followed by Contractors positively contributed toward the
loan growth. Real Estate (contributes ~27% to private sector loans)
increased by 1.5% MoM. Contractors (contributes ~9% to private sector
loans) increased by 3.9% MoM. On the other hand, Services
(contributes ~18% to private sector loans) decreased by 0.3% 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% in 2014. Services segment grew by 21.3% in
2014. On the other hand, the Industry segment only witnessed a 5.7%
YoY increase in 2014.
Banking Sector - Loan to Deposit (LDR)
-
200,000
400,000
600,000
800,000
50%
70%
90%
110%
130%
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
QRmn
LoantoDepositRatio
Loans Deposits Loan to Deposit Ratio
Source: Qatar Central Bank (QCB)

2. QNB Financial Services SPC
Contact Center: (+974) 4476 6666
PO Box 24025
Doha, Qatar
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Page 2 of 2
Loans & Deposits
Total Loans Total Deposits
-3.0%
0.0%
3.0%
6.0%
9.0%
-
200,000
400,000
600,000
800,000
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
ChangeMoM
QRmn
Public Sector Private Sector Outside Qatar Total Loan Growth MoM
Source: QCB
-20%
-10%
0%
10%
20%
-
100,000
200,000
300,000
400,000
500,000
600,000
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
ChangeMoM
QRmn
Public Sector Private Sector Non Resident Total Deposit Growth MoM
Source: QCB