(Adds expansion plans)
KUALA LUMPUR, Oct 8 (Reuters) - The National Bank of Abu
Dhabi, the second-largest bank in the United Arab
Emirates (UAE) by assets, plans to triple its contribution from
Islamic banking by introducing sharia-compliant services in
Egypt, Oman and Malaysia.
NBAD aims to derive up to 10 percent of its operating income
from Islamic banking by 2020, from 3 percent currently, chief
executive Michael Tomlin told reporters at the launch of its
Malaysian subsidiary on Monday.
NBAD has invested 310 million ringgit ($101.5 million) in
paid-up capital to establish a wholly-owned subsidiary in
Malaysia where it will focus on conventional products for
NBAD issued a 500 million ringgit sukuk, or Islamic bond, in
Malaysia two years ago that earned a coupon rate of 4.9 percent
after its orderbook was oversubscribed by more than two times.
NBAD is 70.5 percent owned by the government of Abu Dhabi
and recently expanded into Malaysia and China, taking its global
presence to 14 countries. The contribution to group operating
profit from its overseas businesses rose to 28 percent in the
first half of 2012, compared with 16.3 percent last year.
"Our strategy is to take the bank from a presence in 14
countries to around 41 countries in the next ten years," senior
general manager of NBAD's international banking division Qamber
Ali Al Mulla said.
It aims to open 30 branches in Malaysia within the next
decade. Malaysia has also been named as a regional hub for NBAD,
with plans to expand into Indonesia and Singapore.
"Malaysia represents a strategic importance for us given its
ideal geographical location, stability and healthy market
climate. Malaysia was chosen given its significant economic
clout in the region and its robust trading activities with the
Gulf," said the company in a statement.
($1 = 3.0545 Malaysian ringgit)
(Reporting by Al-Zaquan Amer Hamzah; Editing by Matt Driskill
and Mark Potter)