GCC corporate banking profitability in recovery mode from 2008 crisis

GLOBAL: GCC corporate banking profitability is poised for a recovery from the 2008 financial crisis as loan loss provisions continue to decline from its peak in 2009, according to a report by The Boston Consulting Group (BCG).

"This has resulted in a corporate banking profitability increase of over 40% from 2009 levels even as revenues have remained flat throughout 2009-2010 and the first half of 2011," said Markus Massi, a partner and managing director at BCG and its regional leader for wholesale banking and capital markets.

The upward trend has emerged despite only Saudi Arabia and the UAE reporting a yearly increase in corporate banking profitability; with other GCC countries showing flat growth and Bahrain recording a declining trend.

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