Pakistan's United Bank Ltd (UBL), majority owned by the Abu Dhabi Group and UK's Bestway Holdings, will rebrand and reposition its branches in the UAE and plans to expand its presence in some neighbouring markets too, the bank's chief said.
Atif R. Bokhari, chief executive of UBL, said although the UAE market needs the physical presence of more branches, there are limits on expansion by foreign banks in the country.
"We would like to open more branches in the UAE but we cannot at the moment. So our strategy is to reposition and rebrand UBL to position it as a global bank in the UAE," he told Gulf News yesterday.
"We are repositioning branches in terms of business development, so we are reinvesting revenues in terms of capital."
Shaikh Nahyan Bin Mub-arak Al Nahyan, the UAE's Minister of Education and Chairman of UBL, opened the bank's new branch in Mussafah. The branch was previously located on Abu Dhabi's Electra Street.
UBL has eight branches in the UAE.
The bank is also gearing up in the UAE to increase its exposure on the corporate side due to the real estate boom. "We will increase mortgage loans for consumers as well as loans for contractors."
Bokhari said the bank is evaluating possibilities of expanding in Qatar, Yemen and certain developing countries in Africa and the CIS. "We have two branches each in Qatar and Yemen but we need to increase our physical presence there. Similarly, in two or three months we should finalise about entering some African and CIS markets."
UBL is also looking at opening representative offices in some markets, he said without specifying names.
This October, UBL completes three years of its privatisation during which the bank's growth has been remarkable, he said.
"We have grown our balance sheet and profitability and the benefits are being reaped in 2005."
The bank earned a pre-tax net profit of $60 million (Dh220 million) during first half 2005, up 80 per cent over the same period last year.
Profits from international operations, mainly from the Middle East was up by 57 per cent.
Business from international operations account for some 25 per cent of the bank's total business.
Bullish about growth in the short-term, Bokhari said the prospects are bright given the fact that the Pakistani economy is on a growth path. "The economy is growing at some 7-8 per cent and there is bound to be a spin off on the banking sector too."
However, he raised concerns about rising interest rates and increasing non-performing loans (NPLs).
UBL has no plans to expand its branch network in Pakistan but it plans to introduce Islamic banking either through a subsidiary or through an Islamic branch in Pakistan.
UBL has achieved 26 per cent emiratisation in the UAE, he said.
The bank also has a branch in the US and a joint venture in the UK with seven branches.
Gulf News
