Public sector deposits increased by 1.3% Month-on-Month in March compared to the robust growth of 5.2% MoM in February, QNB Financial Services' monthly banking report released Tuesday says.
Public sector also drove total credit growth with a gain of 4.6% MoM (down 1.3% YTD).
The government institutions' segment (represents ~59% of public sector deposits) declined by 6.6% MoM (+4.2% YTD).
Moreover, the semi-government institutions' segment posted weak performance, contracting by 19.4% MoM (down 16.2% YTD), says the report.
On the other hand, the government segment surged by 50.1% MoM (+2.6% YTD) after dropping by 11.4% and 22.9% in February and January 2015, respectively.
Private sector companies and institutions’ segment gained by 2.5% MoM (down 2.4% YTD).
Consumer segment gained by 2.2% MoM (+4.9% YTD). Non-resident deposits grew by 15.5% MoM (+31.4% YTD).
The overall loan book continued its growth trajectory and posted healthy performance. Total domestic public sector loans increased by 4.6% MoM (down 1.3% YTD) vs. a marginal growth of 1.5% MoM in February 2015.
The government segment’s loan book expanded by 23.7% MoM (+5.7% YTD). Moreover the government institutions’ segment (represents ~60% of public sector loans) exhibited flattish performance after declining by 2.5% MoM in February (down 2.4% YTD).
However, semi-government institutions’ segment declined by 11.9% MoM (down 12.3% YTD). Hence, the government sub-segment pushed the overall loan book up for the month of March 2015.
Private sector loans grew by 3.1% MoM (+4.7% YTD) vs. a flattish performance in February 2015. The Services segment followed by Consumption and Others positively contributed toward the loan growth, the QNB report said.