National Bank of Abu Dhabi plans to overhaul its branch network in Egypt in a bid to drum up more business from the Arab world’s most populous nation.
The chief executive Alex Thursby said on Sunday that he would bolster NBAD’s existing branch network in the North African country with a new look and new products, and this would not necessarily include additional branches.
He reiterated that he was not interested in buying Citibank’s branch network in Egypt, which is up for sale. However, a number of UAE banks are said to be interested.
“What we have to do is focus on specific areas where we can add value, and to be more of a city bank in certain suburbs and not have thousands of branches,” he said. “We will also have an electronic proposition, good wealth management products, good high-end mortgage products, and have a credit card business that is more suited to segments than the broad base.”
Egypt, which is coming out of an economic slump after four years of political turbulence during which two presidents were removed following popular uprisings, has attracted a multitude of investors betting on outsized growth.
Banks have been at the forefront of those seeking to make money in Egypt, where one in 10 does not have a bank account.
Among the lenders that have expanded into Egypt in recent years has been Emirates NBD, Dubai’s biggest bank, and Abu Dhabi Islamic Bank, the emirate’s largest Sharia-compliant lender.
Mr Thursby said that the planning for the expansion in Egypt would be done this year and would include a budget to revamp the approximately 30 branches the bank has in Egypt. Money will also be spent on new technology and offering new products, he said.
The bank, the largest in Abu Dhabi, outlined a plan two years ago when Mr Thursby took charge of the lender to grow its retail and commercial businesses organically, without resorting to acquisitions. As part of the plan, the bank will be selective in choosing where to grow and what to offer clients, he said.
As part of its retail drive, the bank has been identifying countries with burgeoning middle classes in which to establish itself as a niche player. As well as Egypt, Indonesia has been mentioned.
Its focus on the developing economies in the Middle East, Asia and Africa is crucial to its strategy to diversify away from being overly reliant on the UAE, where more than 50 banks service a population of 9 million.
The bank would focus on the capitals or the major cities with the most business opportunities, Mr Thursby said.
mkassem@thenational.ae
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