"Shayne Nelson, the newly-appointed chief executive of Emirates NBD, takes the reins of Dubai’s largest bank at a tricky time. The lender is gearing up to play a more prominent international role through acquisitions, but is still grappling with high levels of toxic debt on its books.
One of Mr. Nelson’s most pressing tasks will be seek new pockets of revenue outside the bank’s domestic market, which many consider overbanked with around 50 local and international institutions. Currently, ENBD derives some 8% of its revenues from outside the United Arab Emirates, which it hopes to boost to 20% in the next three to five years.
And while the bank’s 31% rise in first-quarter net profit mirrors to a large degree Dubai’s own economic rebound, the lender’s non-performing loan ratio (the percentage of loans in default compared with total lending) remains perched at a lofty 14.2%. Emirates NBD expects this level to peak at between 15%-16% this year."
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