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Tue 22 Jun 2010 12:54 PM

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NBAD sees retail revenues rise by 20% in 2010

National Bank of Abu Dhabi sees higher lending driving increase this year.

NBAD sees retail revenues rise by 20% in 2010
(Getty Images)

National Bank of Abu Dhabi expects its retail revenue to increase by up to 20 percent 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 percent in the second half of this year.

Currently, revenues from retail banking accounts for about 20 percent of the bank's total revenues, he said.

"Consumer lending has increased by 15 to 20 percent this year and that will contribute to growth in our retail business. We will see retail's share up by 5 to 10 percent 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 percent 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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