The role of using an intensive distribution strategy on the profitability of commercial banks)Analytical research on the Gulf Commercial Bank)

Abstract

This study examines the effects of an intensive distribution strategy on the operational profitability of Gulf Commercial Bank, investigating the relationship between the expansion of the bank's branch network and ATM infrastructure on one hand, and its profitability indicators on the other. The research employs financial data analysis covering the period from 2016 to 2023, with particular focus on the evolution of branch numbers (which decreased from 25 in 2016 to 19 in 2023) alongside significant growth in ATM terminals (from 28 to 49 units during the same period). The findings reveal that the intensive distribution strategy positively contributed to enhancing the bank's profitability. The expansion of service points facilitated customer accessibility and increased transaction volumes. Furthermore, the analysis demonstrates that electronic banking services, including mobile applications and internet banking platforms, played a pivotal role in improving operational efficiency and reducing costs, thereby positively impacting the bank's financial indicators. The study concludes with several key recommendations, emphasizing the necessity for continued investment in modern digital channels, expansion of the ATM network, and adoption of cutting-edge banking technologies to ensure sustainable growth and service improvement. The results highlight the importance of maintaining equilibrium between physical expansion through traditional branches and digital transformation through electronic platforms to maximize the benefits of an intensive distribution strategy. Keywords: Commercial bank profitability, Intensive distribution strategy