Wires

National Bank of Abu Dhabi to expand Islamic banking business

KUALA LUMPUR, Oct 8 (Reuters) - The National Bank of AbuDhabi , the second-largest bank in the United ArabEmirates (UAE) by assets, plans to triple its contribution fromIslamic banking by introducing sharia-compliant services inEgypt, Oman and Malaysia.

NBAD aims to derive up to 10 percent of its operating incomefrom Islamic banking by 2020, from 3 percent presently, chiefexecutive Michael Tomlin told reporters at the launch of itsMalaysian subsidiary on Monday.

NBAD has invested 310 million ringgit ($101.49 million) inpaid-up capital to establish a wholly-owned subsidiary inMalaysia where it will focus on conventional products forwholesale clients.

NBAD issued a 500 million ringgit sukuk, or Islamic bond, inMalaysia two years ago that earned a coupon rate of 4.9 percentafter its orderbook was oversubscribed by more than two times.

NBAD is 70.5 percent owned by the government of Abu Dhabiand recently expanded into Malaysia and China, taking its globalpresence to 14 countries. Contribution from its overseasbusinesses rose to 28 percent in the first half of 2012,compared to 16.3 percent last year.

($1 = 3.0545 Malaysian ringgit)

(Reporting By Al-Zaquan Amer Hamzah; Editing by Matt Driskill)

((alzaquan.amerhamzah@thomsonreuters.com))

Keywords: BANKABUDHABI SHARIA/