UAE lenders will boost retail banking revenue at “high single to early double digit” rates as consumer lending increases amid the region’s accelerating economic growth, the country’s biggest bank said.
Retail banking, which includes products like credit cards and personal loans, will likely account for 50 per cent of revenue at most banks over the next three years, up from about 35 per cent now, Suvo Sarkar, the head of retail banking at Emirates NBD, said in an interview on Tuesday.
Dubai's economy is recovering from one of the world's worst property crashes, helped by a rebound in tourism and retail trade. The country, with a population of 8.3 million, is home to 51 banks including HSBC and Citigroup.
“The penetration of wealth management among customers is quite low and even today, less than 20 per cent of the spending here is done on cards,” Sarkar said.
Emirates NBD’s revenue from consumer banking and wealth management grew 13 per cent in the first half to Dh1.24 billion as lending advanced 12 per cent in the six months through June.
* Bloomberg News
