The banking industry in the Middle East experienced a healthy revenue growth of seven per cent in 2011 after a year of stagnation and the strong recovery was led by GCC banks, according to the latest Middle East Banking Index of Boston Consulting Group (BCG).
The overall profits of Middle East banks increased significantly in 2011, reaching the highest level since the all-time high in 2007. Loan loss provisions (LLPs) fell by two per cent although a number of banks that were previously not affected and had relatively low LLPs needed to make more provisions.
While banks in Saudi Arabia, the UAE, Kuwait and Bahrain had healthy revenue growth rates between four per cent and eight per cent in 2011, those in Oman and Qatar grew revenues by 11 per cent and 22 per cent, respectively. In addition, banks in all countries except in Kuwait and Oman achieved double-digit aggregate profit growth rates.
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