Retail banking is growing at a faster rate and is expected to overtake corporate banking in the Gulf Cooperation Council (GCC) countries except in the UAE and Qatar, according to a report by AT Kearney.
The UAE, which saw rapid growth in retail banking only before the pre-crisis, is expected to again witness growth, driven by economic well-being and rising gross domestic product (GDP) per capita, reported Gulf Business.
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Following the economic crisis in 2008, GCC banks slowed down considerably.
According to the report, government inventions such as setting up credit bureaus in Qatar and UAE, and supporting the small and medium-size enterprises (SMEs) in various GCC countries will boost the growth of retail banking industry in the region.
The report also found that GCC banks are improving their customer services and adding more digital offerings to attract customers.
In the first half of 2013, net profit for the GCC banking sector grew by 14%, up from 6% compared to net profit in the first half of 2012, driven by increased loan asset growth, wider interest margins, and generally lower loan loss provisioning charges.
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