Business | Banking
Emirates NBD eyes opportunities in domestic and regional markets
Emirates NBD, the new banking company created through the merger of Emirates Bank International and National Bank of Dubai, will create a regional banking behemoth with its expanding presence across the key regional markets.
- By Babu Das Augustine, Banking Editor
- Published: 23:25 July 12, 2007
- Image Credit: Gulf News Archive
- The merger of Emirates Bank International and National Bank of Dubai, will create a regional banking behemoth with its expanding presence across the key regional markets.
Dubai: Emirates NBD, the new banking company created through the merger of Emirates Bank International and National Bank of Dubai, will create a regional banking behemoth with its expanding presence across the key regional markets.
The bank currently has a presence in leading regional and international markets such as GCC, Iran, India the United Kingdom, Jersey and Singapore.
"This merger offers a unique opportunity for our organisations to create a regional banking powerhouse with scale that will support our shared vision for international expansion," said Ahmad Humaid Al Tayer, chairman of Emirates NBD.
Expansion
Over the past few years, both EBI and NBD have expanded their businesses to take advantage of new opportunities in retail, corporate and Islamic banking.
They have successfully diversified into other financial services such as brokerage, asset management and investment banking, and pursued regional expansion by opening new branches in the GCC states as well as representative offices in strategic markets.
"Emirates NBD's objective is to become a leading regional financial institution, with an increasing international presence. The company will seek to leverage its financial strength, scale and market positioning to capture opportunities in both domestic and regional markets," said Rick Pudner, chief executive of Emirates NBD.
The merger creates an ideal platform for domestic and regional growth. EBI and NBD have certain complementary businesses with similar strategic objectives, leading UAE banking franchises, management talent and deep regional knowledge.
By joining forces, EBI and NBD aim to deliver enhanced value across corporate, retail, Islamic and investment banking across the GCC region.
"Each bank has invested in new technology, infrastructure, and people to strengthen its position in an increasingly competitive banking environment both domestically and regionally, all these strengths combined will work to the advantage of the new banking entity," said R. Douglas Dowie, adviser to the board of Emirates NBD.
The new company is expected to have the leading UAE market positions in terms of 19.2 per cent market share and total assets worth Dh165.2 billion.
Total loans with a combined market share of approximately 21.7 per cent (Dh109.1 billion) and total deposits with a combined market share of approximately 18.4 per cent (Dh95.3 billion).
Huge expectations
It is also expected to create a market leader across all core business lines, such as retail banking, Islamic finance, corporate banking, private banking, investment banking and stock broking.
On the retail front, the merged entity will have 99 branches and about 429 ATMs and Cash Deposit Machines.
The new bank will be major player in the corporate banking arena with a combined market share of almost a fifth of corporate loans. It will have Dh8.5 billion assets under management.
The merged entity will have the largest balance sheet in the GCC, it will however be relatively small compared to major international banks.
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