gulfnews : 'Profitability of Gulf's corporate banking recovers after slowdown

Profitability of corporate banking business in the Gulf is recovering fast from the global financial turmoil, according to a recent study by the Boston Consulting Group (BCG).

According to the firm's recently-released Corporate Banking Benchmarking Report, as loan loss provisions (LLPs) in corporate banking peaked in 2009, corporate banking profitability consequently declined to levels below those of 2007. However, provisions began to decrease in 2010 and continued to decrease in the first half of 2011.

"This has resulted in a corporate banking profitability increase of over 40 per cent from 2009 levels even as revenues have remained flat throughout 2009-2010 and the first half of 2011," said Markus Massi, Partner and Managing Director and BCG's regional leader in Wholesale Banking and Capital Markets.

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