A new study conducted recently by The Boston Consulting Group (BCG) has revealed the fact that the only country in the Middle East with a significant growth rate in profits in the first half of 2009 was Qatar.

In the first half of 2009, banks in Qatar and the UAE had the highest revenue growth rates of Middle Eastern banks, claims the global management consulting firm's analysis of each country and individual bank.

As per a segment analysis of banks in the GCC, although in the first half of 2009, retail banking revenues festered, retail banking profits fell less strongly than total banking profits. So overall, a stabilizer of revenue and profit development for banks in the Middle East was retail banking.

Furthermore, the study forwards a slowdown in the growth rate of banking revenues in the Middle East in the first half of 2009. On the other hand, though the banking profits continued to plunge further below 2005 levels because of considerable loan loss provisions, the overall growth rate of banking revenues was still positive. But the study did specify that as compared to international counterparts, Middle Eastern banks continue to fare better.

It should be noted that the latest study is part of BCG's annual banking and retail banking indices measured by the development of banking revenues (operating income) and profits for leading global banks. The first edition of the banking performance index in the Middle East was launched in April 2009 by BCG. This led to a customized index particularly for the Middle Eastern banking markets, with 2005 revenues and profits as starting benchmarks.

The largest banks in Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE were covered by the index. Twenty five banks are covered by the second edition of the index, which includes the biggest banks from all GCC states, including Oman.