In spite of the recent challenging political and social events in the Middle East, GCC banks continue on the path of recovery, a report said.

But that growth will be more subdued than in the pre-crisis years, according to a report by global management consultancy firm A T Kearney.

"It is expected that banking growth will remain in the single digit range compared to the double digit growth rates of the past," the report says.

"GCC banks have the opportunity to overcome this by addressing opportunities in retail banking, investment banking and in new geographic regions.

"The beginning of 2011 has seen a recovery for GCC banks, a continuing trend which started in 2010, with overall GCC bank assets growing slightly faster in 2010 than in 2009.

"While both growth and profitability remain far below pre-crisis levels, rising oil prices are providing a boost and the outlook for the remainder of 2011 appears brighter with a promise of improved profits and reduced costs of risks," it adds.

"Planning for growth is difficult enough, but how to plan for subdued growth is something GCC banks need to consider now," said A T Kearney Middle East vice-president Cyril Garbois.

A T Kearney suggests five ways for GCC banks to ensure a brighter 2011 outlook. These include improving productivity, enhancing customer service, strengthening retail banking, capitalising on investment banking opportunities and widening the geographic footprint.

"Customer service and share-of-wallet is another key topic as the average number of products and revenue per customer for GCC banks is still relatively low compared to developed markets," added A T Kearney Middle East head of financial institutions group Dr Alexander von Pock.

"Studies show that GCC banks generally do not focus on customer service.

"In the US, 75 per cent of bank customers feel satisfied with the service they receive while, for example, in the UAE, only half of all domestic bank customers are satisfied and only 10pc of the UAE's expatriate customers feel they are getting an appropriate service from their bank."  -TradeArabia News Service