Retail Banks to Record Subdued Revenue Growth in UAE, KSA, Kuwait

SourceAl Bawaba
SectorFinancial Services

The most affected retail banking products in regional banks because of the pandemic are consumer loans and deposit revenues Boston Consulting Group said in the UAE, Saudi Arabia, and Kuwait the retail banking revenue growth in the 2019-24 period, even in a quick-rebound scenario, would only be at a compound annual growth rate of 1. 6 percent or from $26. 4 billion to $28. 6 billion in 2024.

The growth rate is subdued when compared to the strong growth recorded in 2014 –2019, at a CAGR of 5. 5 percent. However, in a slow-recovery scenario, the revenue growth is expected to shrink by a CAGR of minus 0. 1 percent to $26. 3 billion while in a deeper-impact scenario, the revenue pool is projected to shrink by a CAGR of minus 2. 1 percent, BCG said in its report, "Global Retail Banking 2021: The front-t-back digital retail bank." "The pandemic has taken a toll on the retail banking sector, and we believe that a slow-recovery scenario is most likely to occur for GCC retail banks," said Godfrey Sullivan, managing director, and partner, BCG. "In this scenario, the revenue pool of regional retail banks will approximately reach the 2019 level only more...