- The low oil price is the main reason of this dilemma in these countries which depend on its economy at first on oil as the only source for money and business maker. This bad policy they suffer from its result now. A recent study by The Boston Consulting Group (BCG) found that revenues of about 45 GCC banks, representing about 80% of the regional banking sector, last year posted a 7.2% growth, down three percentage points from 2014.
- Also, profits went up by 6.3 %, still lower than the 14.7 % growth achieved in 2014. income also dipped by 21.5 %.
Gulf banks are still doing so much better than their global peers.The performance of GCC banks clearly exceeded that of their international counterparts, a number of which experienced further revenue declines in 2015.
- UAE and KSA have a negative growth . Only the banks in Qatar achieved a double-digit growth rate of 13% in retail profits. Oman showed double-digit growth rates in corporate revenues and profits also .BCG, however, maintained that Gulf banks are still doing so much better than their global peers
while operating costs slowed down, bad loans inched up a bit, something that has “rarely been witnessed in the last six years.”Dr. Reinhold Leichtfuss director at BCG’s Middle East office has stated .
(source :Gulf news )