NBAD inaugurates subsidiary in Malaysia

Kuala Lumpur: Oct 9, 2012 (WAM) - The National Bank of Abu Dhabi (NBAD), the Number One Bank in the United Arab Emirates (UAE), has made Malaysia its regional hub to lead expansion in the country and across Southeast Asia. NBAD 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, US$101.3 million). NBAD ambitious plans in Southeast Asia include expanding to 30 branches in Malaysia in the next decade and into Indonesia and Singapore. Malaysia is chosen as NBAD regional hub given its significant economic clout in the region and its robust trading activities with GCC. The UAE stood as Malaysia's biggest trading partner in the GCC in 2011 with MYR 21.06 billion (Dh 24.42 billion) of trade flows. Bilateral Trade with the GCC stood at MYR 43.76 billion (Dh 50.76 billion). This figure is expected to grow 41% as a result of Malaysia-GCC Framework Agreement on Economic, Commercial, Investment and Technical Cooperation signed in Abu Dhabi in January 2011, which would set the platform for a Free-Trade-Agreement (FTA). "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. Malaysia is one of the largest economies in the Association of Southeast Asian Nations (ASEAN), which also includes Indonesia, Philippines, Singapore, and Thailand. NBAD-Malaysia, which is a fully-licensed conventional commercial bank, offers wholesale banking with the strategy to offer other banking products and services. NBAD-Malaysia would primarily focus on providing working capital and trade finance facilities to wholly or partially government-owned companies (GLC), top-tiered Malaysian companies, multi-national companies, established manufacturers and exporters who transact with Middle East countries. In 2004, NBAD, the most profitable bank in the UAE, became the first UAE bank to earn more than Dh1 billion in net profits. The Bank achieved another groundbreaker for the country's banking industry when in 2010 it earned more than US$1 billion in annual net profits. NBAD's international network, which is the largest and most widespread among UAE banks, spans 15 countries across four continents. It stretches from China and Hong Kong in the Far East to Malaysia in Southeast Asia; Oman, UAE, Bahrain and Kuwait in the GCC; Jordan in the Levant; Egypt, Sudan and Libya in Africa; Switzerland, France and the UK in Europe; and the United States of America in North America. The Bank has further expansion plans. In the first half of 2012, NBAD's international operations increased its operating profits by 28% compared with corresponding period in 2011, contributing 16.3% to the Bank's Dh 4.1 billion ($1.1 billion). NBAD-Malaysia branch is located in Menara Maxis, Kuala Lumpur City Centre, Kuala Lumpur. – Emirates News Agency, WAM