GCC banks’ revenue growth rate plunged back to single digit
The banking industry in the GCC grew at a lower rate in 2015 than it did in 2014 with just a 7.2 percent increase, stemming almost exclusively from major customer segments such as retail and corporate banking. Based on the banks' 2015 annual results released in the first quarter of 2016, the newest study by The Boston Consulting Group is part of the company's annual banking performance indices measuring the development of banking revenues (operating income) and profits for leading GCC banks.
BCG launched the first edition of the banking performance index in the GCC in April 2009, creating a customized index specifically for the regional banking markets, with 2005 revenues and profits as starting benchmarks. The index covers the largest banks in Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and in the UAE.
"The 2015 BCG index includes 45 banks from across the GCC, capturing about 80 per cent of the total regional banking sector," said Dr. Reinhold Leichtfuss, a senior partner and managing director at BCG's Middle East office. In 2015, Oman banks led the pack in terms of growth numbers with 9.6 per cent in revenues and 10.5 per cent in profits. In parallel, UAE banks' revenues grew by 8.1 per cent and Kuwait banks recorded a 11.4 per cent profit growth. The spread of revenue and profit growth rates between the GCC countries was significantly smaller than that of last year, ranging from four to 11 per cent.