GCC corporate banking on recovery track
According to the firm’s recently released, Corporate Banking Benchmarking Report, as Loan Loss Provisions (LLPs) peaked in 2009, corporate banking profitability consequently declined to levels below those of 2007. However, LLPs began to decrease in 2010 and have continued to decrease in the first half 2011 (not all non-performing loans may have been accounted for as yet and some banks, especially in the UAE, might experience further loan losses). “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.
