Besides the fact that it is THE luxury event of the yearMay 27, 2015 9:48
Study finds 2012 profitable year for GCC banks
A recent study from the Boston Consulting Group has found that banks in the Middle East enjoyed revenue growth of a 6.9 percent increase and an increase in of 8.1 percent.
March 27, 2013 6:18 by kippreport
The GCC’s banks growth may well be within the single digit range, but when compared to the performance of international banks in 2012, it performed significantly well.
Using the 2012 annual results released by the banks in the first quarter of 2013, the Boston Consulting Group found the annual banking performance indices for the Middle East was commendable.
Dr. Reinhold Leichtfuss, Senior Partner & Managing Director in BCG’s Dubai office said “While the performance of Middle East banks settled at high single digit growth figures in 2012,it still compared very well with the international banks which experienced a further revenue decline. This provides the Middle East banks the opportunity to undertake the necessary investments in capabilities and regional expansion.”
While banks in Qatar grew revenues by 12 per cent and banks in Saudi Arabia and Oman achieved high single digit growth rates, banks in the UAE, Kuwait and Bahrain achieved a revenue growth rate of 5 percent or below. Banks in all countries achieved above 7 percent profit growth rates, except in Kuwait with 3 percent.
As far the corporate segment is concerned, the UAE and Kuwait banks experienced a decline in corporate banking revenues while the other countries experienced a healthy increase of 6 percent or more. Profits declined slightly driven again by the countries with the highest increase in loan loss provisions, that is, Saudi Arabia and Kuwait. Retail banking profits in the GCC, which has been on the decline, saw an increase of 8 percent-a considerable drop for the 11 percent growth rate experienced last year.