Emirates NBD ventures into Southeast Asia
Emirates NBD, the UAE’s second largest banking group by assets, is making Indonesia its core market in Southeast Asia as it expands beyond its home region, the Jakarta Post reported.
“Indonesia has already been the largest part of our [business at our] regional branch office in Singapore. China comes second and Singapore third,” Emirates NBD international general manager Kevin Flannery said on November 20 at the opening of its Jakarta representative office. He added that the bank had disbursed loans over the past three years of up to $300 million to clients primarily in the country’s financial services and manufacturing sectors.
“That was achieved without anyone on the ground,” he said.
He added that the bank may open a branch in Indonesia in the future, citing the size of the business arising here.
“Once we gain more knowledge about Indonesia, we will start considering options such as opening a branch office or even buying a bank here,” Flannery said. “But that depends also on the availability of opportunities in the country.”
He said the firm’s overseas expansion would help it attain its target of securing 20 percent of its total asset base outside the Middle East.
“We have managed to increase our assets outside the United Arab Emirates by 4 to 5 per cent organically. That figure rises to 8 per cent with the acquisition in Egypt,” he said, referring to the bank’s $500 million deal in June to acquire BNP Paribas SAE, which resulted in the taking over of BNP Paribas’ operations in Egypt.
Emirates NBD set up what was before today its sole Southeast Asian representative office in Singapore in 2006, upgrading it to a branch office in 2011, while also establishing representative offices in Beijing, China, and Mumbai, India, in recent years.
Emirates NBD’s chief representative for Indonesia, Bambang Udaya, said the bank aimed to “reach out to more Indonesian companies interested in obtaining foreign funding” via its Jakarta representative office. He added that the depreciating rupiah against the US dollar in recent months had presented the bank with business opportunities.
“The interest rates in Indonesia are rising, so companies are naturally shopping for lower interest rates. Hence, they are looking to secure overseas funding with lower interest,” he said. “There is an opportunity for us to lend money because we disburse [low interest] dollar-denominated loans.”
He stressed, however, that Emirates NBD was targeting “feasible companies” for its corporate banking products and services, with loans of $10 million minimum, adding that besides providing loans to domestic firms, the bank would also seek to attract Middle Eastern investors here and vice versa.
Emirates NBD, the UAE's second largest banking group by assets, is making Indonesia its core market in Southeast Asia as it expands beyond its home region, the Jakarta Post reported. “Indonesia has already been the largest part of our [business at our] regional branch office in Singapore. China comes second and Singapore third,” Emirates NBD international general manager Kevin Flannery said on November 20 at the opening of its Jakarta representative office. He added that the bank had disbursed loans over the past three years of up to $300 million to clients primarily in the country’s financial services and manufacturing...
Emirates NBD, the UAE’s second largest banking group by assets, is making Indonesia its core market in Southeast Asia as it expands beyond its home region, the Jakarta Post reported.
“Indonesia has already been the largest part of our [business at our] regional branch office in Singapore. China comes second and Singapore third,” Emirates NBD international general manager Kevin Flannery said on November 20 at the opening of its Jakarta representative office. He added that the bank had disbursed loans over the past three years of up to $300 million to clients primarily in the country’s financial services and manufacturing sectors.
“That was achieved without anyone on the ground,” he said.
He added that the bank may open a branch in Indonesia in the future, citing the size of the business arising here.
“Once we gain more knowledge about Indonesia, we will start considering options such as opening a branch office or even buying a bank here,” Flannery said. “But that depends also on the availability of opportunities in the country.”
He said the firm’s overseas expansion would help it attain its target of securing 20 percent of its total asset base outside the Middle East.
“We have managed to increase our assets outside the United Arab Emirates by 4 to 5 per cent organically. That figure rises to 8 per cent with the acquisition in Egypt,” he said, referring to the bank’s $500 million deal in June to acquire BNP Paribas SAE, which resulted in the taking over of BNP Paribas’ operations in Egypt.
Emirates NBD set up what was before today its sole Southeast Asian representative office in Singapore in 2006, upgrading it to a branch office in 2011, while also establishing representative offices in Beijing, China, and Mumbai, India, in recent years.
Emirates NBD’s chief representative for Indonesia, Bambang Udaya, said the bank aimed to “reach out to more Indonesian companies interested in obtaining foreign funding” via its Jakarta representative office. He added that the depreciating rupiah against the US dollar in recent months had presented the bank with business opportunities.
“The interest rates in Indonesia are rising, so companies are naturally shopping for lower interest rates. Hence, they are looking to secure overseas funding with lower interest,” he said. “There is an opportunity for us to lend money because we disburse [low interest] dollar-denominated loans.”
He stressed, however, that Emirates NBD was targeting “feasible companies” for its corporate banking products and services, with loans of $10 million minimum, adding that besides providing loans to domestic firms, the bank would also seek to attract Middle Eastern investors here and vice versa.
