NBAD sees retail growth of up to 20pc in 2010
Abu Dhabi, June 22, 2010
National Bank of Abu Dhabi expects its retail revenue to increase by up to 20 per cent this year due to higher lending, NBAD said on Tuesday.
Saif al Shehhi, senior general manager of domestic banking, said interest rates on deposits could edge up by 0.5 per cent in the second half of this year.
Currently, revenues from retail banking accounts for about 20 per cent of the bank's total revenues, he said.
'Consumer lending has increased by 15 to 20 per cent this year and that will contribute to growth in our retail business. We will see retail's share up by 5 to 10 per cent this year,' he told reporters at the launch of a new retail service.
NBAD has tied-up with the US' MoneyGram International to offer customers mobile phone remittances from the United Arab Emirates.
Banks in the UAE tightened lending since the financial downturn particularly to the private sector due to liquidity issues.
But Shehhi said NBAD's lending has increased this year, especially personal loans, mortgages and car loans.
'Liquidity is improving and at individual bank levels we need liquidity, so we may increase interest rate on deposits from 2.5 to 3.0 per cent soon to attract deposits,' he said.
The bank also plans to open six new branches before end of 2010 taking the total branches in the UAE to 110, he said. – Reuters
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