NBAD plans massive international expansion

Monday, Oct 08, 2012

Abu Dhabi: Giving a massive push to its business expansion plans, the National Bank of Abu Dhabi (NBAD) said on Monday it is aiming to expand its operations to 41 countries from 14 currently, in the next decade.

In a statement, NBAD said it has identified Indonesia, Singapore, India, South Korea and Vietnam as its new potential growth markets, while making Malaysia its regional hub to lead expansion in that country and across Southeast Asia.

NBAD said it inaugurated its wholly-owned subsidiary National Bank of Abu Dhabi Malaysia Berhad (NBAD - Malaysia) in Kuala Lumpur with an investment of RM310 million (Dh372.1 million). NBAD’s plans in Southeast Asia include expanding to 30 branches in Malaysia in the next decade.

“Southeast Asia is one of the fastest growing regions in the world with strong commercial links to UAE. Malaysia is the region’s largest trading partner with the Gulf region and in the UAE in particular, making it a natural choice for us to establish a subsidiary here,” said Michael H. Tomalin, the Group Chief Executive of NBAD.

Qamber Ali Al Mulla, senior general manager at NBAD’s International Banking Division said: “In the short to medium term, our new destinations will be Saudi Arabia, Lebanon, Iraq, India, South Sudan, Turkey, Brazil, Australia, Singapore, Canada, Indonesia, South Korea and Vietnam.”

“NBAD’s goal is to diversify its revenue stream away from the UAE market, but it’s going to be a slow and gradual process. Initially, they would probably set up a representative office in the targeted country and start growing from there,” Shabbir Malik, banking analyst at EFG-Hermes told Gulf News by telephone, reacting to the development.

The stock of NBAD closed 0.11 per cent higher on Monday at Dh9.60 on the Abu Dhabi Securities Exchange in a flat market.

By Himendra Mohan Kumar Staff Reporter