An Assessment of the Emirates NBD Bank

Emirates NBD is a bank which came into being on 16 October 2007 after the merger of Emirates Bank International and National Bank of Dubai. Since, the two banks were among the top four banks of the region; their merger made them the leading banking group with the largest asset base. It is the fastest growing bank in UAE with over 132 branches and 705 ATMs complying with its vision of being the most dynamic and leading financial service provider in the region. Apart from this, the bank delivers solid investments with equal emphasis on the brokerage and asset management services. It is well ahead of its competitors being a leader in retail and corporate banking sphere. It offers banking in many areas such as personal, private, priority, corporate and business. The bank believes in expanding by mergers and acquisitions. It has shown interest in the recent past to acquire any inconsistent rival to expand beyond Middle East. Emirate NBD asset management has an impeccable reputation to analyse the investment potential of a region. It has raised funds better than the local and international companies working alongside revealing its strong human capital. Also the sound liquidity management has raised deposits leading to greater revenue. The bank is driven by optimisation of balance sheet, investment and profitability making it the region's trading, financial and economic hub. The bank consists of 12 Board of Directors who are industry leaders in their respective fields and meet monthly to discuss the strategies, control and risk management policies to be implemented by the top management team. The management team comply with the decisions made by the Board of Directors. The bank has been progressive in its approach to establish itself as the leading bank in the Middle East. The financial statistics of 2009 showed that the bank has total assets of about AED 281.6 billion with total income of AED 108 billion, 20% cash dividends, customer loan at AED 214 billion and deposits at AED 181 billion. Though 2010 proved to be a challenging year as the revenue declined by 5% in the corporate sector and 2% in the consumer sector due to bad loans amidst slower global recovery from recession, Emirates NBD seems optimistic to avail the growing opportunities in the market. The brand value is stronger as the organisation is represents unity as its growth icon. The strategy of the organisation is to improve its network by implementing high level IT services and penetrating into unveiled markets and hence drive profitability. The financial stature of the bank has been increasing as it saw a 28% increase in income in the year 2009. The various sectors of banking and intermediate risk management strategies have been supportive to the objectives of the organisation. Also, the bank has been involved in several Corporate Social Responsibilities such as boosting emiratisation, hence inscribing trust and responsibilities towards its stakeholders. (About Emirates NBD)

2.0 Situation Analysis

The present stature of the organisation has been high and is continuing to increase over the years. The merger of the two banks leading to the formation of Emirates NBD has made them the largest bank in terms of assets in Middle East. The new brand thus formed is successful incarnation of its unified efforts which represents its dominant size and strength making it a territorial powerhouse, bank values making it secure and trustworthy and brand values concerned with meeting the customer expectations, thus allowing the bank to evolve and pursue substantial partnerships on the client front. The bank offers many services such as: Investor relations Emirate Asset Management Treasury Brokerage services Corporate social responsibility Advisory services Discretionary portfolio services The Emirates NBD Bank is an excellent financial institution and practices firm fundamentals to grab staggering business opportunities, well supported by its rich human resources. (Emirates NBD announces its 2009 result)

2.1 Market Summary

The Emirates NBD is leading banking sector in the region and has a strong hold on the market variables. Their whole service sector has been categorized into several sectors such as personal, corporate, priority, business and private banking which offer to its set of customers and shareholders with an array of services and hence are complimented with staggering opportunities to grow. To reflect upon the brand value in the market the company follows a standard architecture ensuring usability and flexibility. This has benefited the organisation as it reduced complexity and ensures proper addition of newer services to the existing one's with minimum efforts offering simplicity. Internally, the various services are comprehended as a single brand to facilitate better understanding and trust among the bank and its customers. Externally, the bank has formulated policies and directives to ensure global recognition. (Emirates NBD, 2009)

Target Markets

The greater assets have been advantageous to the banking sector and bank has been growing at a greater pace. This has opened a lot of opportunities with a greater number of services and a larger customer base. The organisation aspires to gain over the markets given below: Consumer and Wealth Management Wholesale Banking Global Markets and Treasury Network International IT and Operations Investment Banking Outlook

2.1.1 Market Demographics

The customers to Emirates NBD are the most valuable assets. In 2009, the customer loans had grown to AED 214 billion and customer deposits at AED 181 billion. The key focus of the company has been on giving its shareholders and customers, better services and opportunities of value to their money. Thus, it is important to analyse the characteristics of its customers on the basis of geographic, demographic, behavioural and brand architecture factors:

Geographic

Emirates NBD Bank has established itself as a global entity and has been extremely blessed at arranging debt capital market transactions globally. This has shown that Emirates NBD Bank's position in the global arena is increasing over the years complementing its astounding success in the Middle East. It has a growing interest to expand over the Indian subcontinent and China. It has also expressed interests in taking over smaller banks to expand its empire in globally. Recently, Emirates NBD Bank in connection with HDFC, an Indian Bank launched an online remittance facility for its Indian customers. This would allow the expatriate Indian community in the Middle East to reemit its funds to their HDFC account. According to the bank, the Indians form the largest of the demographic base in the Middle East and hence have been advantageous even during recession which made the region the largest remittance earner with money valued at $55 billion in 2009. Thus, the Emirates NBD Bank is smart enough to understand that the its operations are highly valued in Middle East but to expand globally it needs to collaborate and merge with the regional banks to expand its customer base. The ownership statistics are also affected geographically to some extent. There are over 1500 shareholders of which the maximum numbers of shares are held by the Investment Corporation of Dubai. The foreign ownership is restricted to a mere 5 % of the original of which about 3.8% is occupied and rest is under the nationals. (Shareholder's Resources)

Demographics

The banking facility is available to all people and does not distinctly identify people on the basis of age, gender, education, nationality and family size. However, certain factors such as income and nationality may affect the strategic implications of the policies on the customers. The income of a person drives the benefits availed by a person i.e., larger and frequent transactions by a customer are preferred over the other customers when the interests of the customers are considered. A person capable of earning by himself is considered for credit cards. A minor can only form an account with the bank in presence of some elder. The benefits availed by the customers also depend upon the type of account, credit card owned by the customer and loyalty is considered a true virtue and always respected.

Behavioural

The involvement of the banking system in everyday life of people in any nation is immense. Mostly all the transactions involved in any customer's activities are dealt by the banking system a person is involved in. Thus, the banking system is independent of the behaviour of the customer as whether the customer lives an active lifestyle or a passive one, the need of bank would be inevitable. It however, would affect the frequency in the transactions that a customer is used to and hence would differ with respect to the benefits or products that the bank provides to its customers and shareholders.

Brand Architecture

As discussed earlier, the brand architecture of the Emirates NBD bank consists of the Masterbrand which is further divided into:

Retail

Personal Banking

It is the most basic form of personal banking where the customers are complimented by general insurance plans, protection and health plans.

Priority Banking

Here the customer is given outstanding value for the money, along with dedicated relationship manager, exclusive hospitality and priority services. The customers also avail promotional offers and preferential pricing. They are also given priority in the usual banking transactions.

Specialist

Corporate Banking

This sort of banking is not personal and meant for large corporate houses and industries. The cash and liability management services by the bank help the corporate clients in meeting their objectives.

Investment Banking

The investment banks are not concerned with deposits and invest the cash in the government and corporate offices to attend to the security issues. The clients are offered with the shareholder services such as analyst coverage, dividend history, and share tools.

Asset management Securities

The asset management services by the Emirates NBD bank provide investment opportunities. They believe in supplying the products and services in relation to investment to its customers and shareholders to satisfy in the best possible way.

Business Banking

It is very similar to the corporate banking however it is concerned with the small and medium business industries. The benefits are less as compared to the corporate banking which includes cash management and trade services.

Exclusive

Private Banking

Such a banking facility is only for valued clients which helps the customer through the sustained financial services. The customers are showered by the global wealth management expertise and liable to the Shari'a compliant fund and banking solutions. The benefits of the above banking vary considerably from the retail to specialist to exclusive where the exclusive customer receives maximum benefits and the retail customer receives the minimum. (Emirates NBD, 2009)

2.1.2 Market Needs

The Emirates NBD bank is the leader in the banking sector which is well structured and branded after the very successful merger of the Emirates Bank International and National Bank of Dubai. Being the leader in the banking front, the bank needs to analyse the market and hence offer solutions to its customers to win their trust and hence avail newer opportunities. The solutions which fulfil the market needs add to the success story of the bank. The Emirates NBD has been keen on improving its customer base and hence, has undertaken several steps in order to increase its customer base around the globe. Amidst the global recession it has been settled onto achieve excellence which shows that its solutions were of strategic importance to its development. Some of the many steps taken by the bank are:

New Emirate NBD credit card

The target of sector was the premium banking area. This was a definite step to increase the market share of the organisation by a whopping 15-20%. The aim was to lure the high end users i.e., the customers availing the benefits of premium sector of retail banking. Thanks, to the 30 million outlets of the Emirate NBD bank worldwide, the response would be faster and more dominant. This would attract not only the regional customers but the global customers. The offer was open to the existing as well as the newer users. (Business|Banking)

Remittances facility

This was done to support the overseas Indian clients to transfer amount from their Emirate NBD account from Middle East to the HDFC account in India. This online remittance facility given to the Indians generated excellent exchange revenues. (Emirates NBD, HDFC launch e-remittance facility )

Private Banking Centre in Abu Dhabi

Amidst the growing need of wealth management solutions, the Emirates NBD bank opened its banking centre for its valued customers in Abu Dhabi. This facility was also more liable for the high end customers. This would help the bank offer solutions to its investors and hence provide better solutions to them to build and use their wealth. The same has also opened gateway for the Middle East to interact with the global community interested in investing to the benefit of the society and government. After the recession such an opportunity to gain from the experienced team managers of the organisation is lucrative for various global customers. (Emirates NBD opens first)

World Class racing experience

The customers who had taken or are willing to take an auto loan from any local or global branch of the bank would be eligible to the world class racing experience to be availed by the lucky 15 of the eligible ones in the prestigious auto show in Abu Dhabi. This was valid for a limited interval but such a strategy has driven customer loans.

Dedicated Business Banking Centre

In accordance to its policies and vision, the organisation established a Business Banking Centre for the small and medium business to promote their development thus creating newer opportunities in terms of jobs, ventures, ownership and capitalism.

Overdraft Facility

The temporary cash shortfalls of a customer was a problem which was shadowed by the bank by introducing an overdraft facility which ensured to solve the emergency cash requirements of a customer and hence would be able to solve the bouncing of cheques. However, every customer would have to sign a contract with the bank to avail the facility. The maximum amount permitted would depend on the salary of the customer. Such an step was beneficial to the bank as well as the customer as it solved instant money shortage problems. (Emirates offers customer protection)

2.1.3 Market Trends

The market for the banking sector is vast but the risk associated with the banking sector is huge. Banking in UAE in general is moving forward. The reason being Foreign investment and bigger players such as investors from Europe and America have become active participants who are generally associated with larger, complex deals and transactions. The banks in the Middle East are progressing to the next level because the deals are regional and it is more suitable for the regional bankers as they are more familiar with regional market structure. The banking has become more sophisticated, transparent and advantageous. Fall backs in the corporate governance are reducing. Financial industry in the Middle East is improving but is still not at par with the global standards. The oil money gorge prevalent from many years seems to have been sort out. The above changes are very well reflected in the strategies and policies of the Emirates NBD Bank.

Corporate Governance

The bank identifies that corporate governance is vital for the development of the banking sector and also to avail benefits to its stakeholders. Of the several benefits of corporate governance, the bank pays importance to risk management and modifying stagnant policies required to gain strategic advantage. The major policies followed by the organisation are: The policies followed comply with the international standards. The policies are effective in controlling risk management, information disclosure, thus are accountable and transparent. The internal structure is well versed and relationship among the board members and the management team is friendly. The same goes for the external structure where the bank is highly cooperative towards its stakeholders and regulatory bodies. The bank complies to the Basel II and with International Anti Money Laundering Laws. (Corporate Governance) The investment banking sector in the Emirates NBD offers huge opportunities to the customers. The recently opened private banking centre in Abu Dhabi has been a huge establishment for the bank as it would attract a number of wealthy global investors. Thus this would connect Middle East to the Europe and America. (Emirates NBD Private Bank) The structure is well sorted with the branding done after its latest merger. Each of the products provided by the organisation is valued as single brand and hence they are independent of the other products. This helps the bank to focus on each brand separately and keep it up to date. This has brought about Restructuring Simplicity Flexibility Usability

2.1.4 Market Growth

The regional banking sector in the Middle East has been growing at a much faster pace than the rest of the world from the past four years. In accordance with a Retail Banking Research Analysis, the banking sector in Middle East is robust with the involvement of foreign investors and regional bankers. Also, the study revealed that the growth of ATM's in the region is expected to shoot up by 75% in the current scenario. The involvement of much bigger players like Europe in the banking sector has allowed regional bankers to expand and hence improve the information technological services available. This has been robust and unified and has paved the way towards a sophisticated, transparent, regional banking of international standards. In the GCC countries such as Egypt, the development in the banking sector has been standard and fast because of the boom in the oil prices which tremendously increased the liquidity in the markets of Middle East. The internet penetration in the Middle East has been driving the IT services in the market. The growth in the Banking sector was fired up by the increase of internet usage. Also, it gave way to yet another aspect of banking called the mobile banking and internet banking. This has further revolutionised the banking sector. (Emirates Bank NBD Dubai UAE)

2.2 SWOT Analysis

The SWOT analyses the strengths and weaknesses of the Emirates NBD Bank and implies prospective opportunities and threats.

2.2.1 Strengths

The company is the leading bank in terms of assets in the GCC nations. Thus, being a leading bank gives you wide opportunities to participate in the development of the region and strengthen the financial position of self. The Banking in the Middle East is driven by the economic growth as a result of increased oil prices. This has brought a lot of money into the hands of the customers. The banking is customer driven; hence the market is quite liquid. The rebranding of the Emirates NBD has been a success, hence the brand architecture of the bank adds to its advantage as it is flexible and enhances usability. Also the consideration of the brands as single entity adds to its simplicity and thus, uniforms the entire structure. The bank has realised that demographics is a key factor affecting the growth of the banking sector to global spectrum. The steps such as launching remittance with an Indian Bank to facilitate the Indian living overseas, opening a private banking and business banking centre in Abu Dhabi to develop the city and bring in huge foreign investments was of strategic importance for the organisation as well as the region. Such decisions by the top management and board of Directors is blooming the banking sector in Middle East. The organisation is a leader in the global markets with larger assets. The foreign investments from Europe and America have also brought in advanced technological changes and improvement in the IT services. This has led to the development of the organisation on technological front. The organisation practices and adheres strongly to the Corporate Governance policies. The Corporate Governance is quite an asset to the development of an organisation as it is among the major flaws in the banking sector in the region. The banks in the Middle East have been unable to cope with the dearth in realisation of Corporate Governance. The internal structure of the organisation is quite friendly where the Board of Governors are in perfect sync with the management team of the organisation. The external structure also is quite robust and delivers its shareholders with interests at par with their expectations. Such a structure is key to its architectural design and branding.

2.2.2 Weaknesses

The banking sector in Middle East is highly fragmented with over 46 institutions, comprising of 21 National banks and remaining 25 being the Foreign banks serving a mere population of 4.4 million. Since, Emirates NBD is one among these banks; it is highly likely that the competition would be stiff. The majority of the banks in Middle East are funded by customers. The customers or clients or shareholders are driving the banking sector. The banking sector believes that every customer is of value to the bank and hence, in cases of bad loans or money shortage where the loans are quite high compared to the deposits, the bank is likely to face a meltdown. Such a high exposure to mortgages on housing does not bother the bank now because of its higher economic growth but in times of softening, the real estate could prove dangerous to the banks. The increasing global influence on the regional banking could prove rendering. The recent meltdown did not affect the banks in the Middle East as they posted profits amidst the global recession because the money in the Dubai Financial Markets is limited to the global exposure but with higher exposure and increasing global investment in the Middle East, the global meltdown could hit the banking sector hard next time. The majority of the workers in the Middle East are the expatriates, hence the bank needs to take into consideration the demographics and study their effect on the markets in more depth. The initiation in this regard has been shown by collaborating with HDFC but it is limited and needs to expand to all sections of expatriate community. (Merger increases pressure)

2.2.3 Opportunities

The bank has divided its brand to the three categories: retail, specialist and executive. Such a categorization has helped the bank in making sound decision and focus on each of the above independently. The opportunities in the retail sector are as the bank continues with its strategy of merger s and acquisitions. The corporate sector is quite fruitful as well with the establishment of the Business Centre in Abu Dhabi. This has opened gates for the regional companies and small business houses to bloom by borrowing loans and mortgaging. The foreign investors are also attracted as they are likely to avail the benefits of the executive brand of the bank. With the increasing competitive market it is easy to diversify and concentrate on core banking areas to generate higher revenues. The act of mergers and acquisitions is an inevitable story and more are likely as the company expands over the years. The increasing foreign trade and investment has opened doors for economic development and gaining exposure to the IT services. The technological front is an area to improve upon and imbibes in itself countless opportunities to spur the economic growth further. The identification of the needs of expatriates in addition to the locals would increase a global presence of the bank. Since, the bank is in line with the global treaties and is directed by the International Standards, the opportunities are limitless. The expansion provides with opportunities to gain experience, train employees, and build a rich human capital.

2.2.4 Threats

The stiff competition from the regional banks has been a cause of distress for the bank. With the increasing fragmentation, the shares or revenue generated are at stake. The recent merger of the bank and rebranding itself has forced many of the competitors such as Commercial Bank of Qatar to buy stakes in Sharjah's United Arab Bank and National Bank of Kuwait hence dominating the Turkish Banking sector. This has increased the competition further. The locals in the region are not well versed with the technological advancements, hence are incapable of working in the banks where newer technology is entertained. This has forced the organisations to hire expatriates which do not seem to support emiratisation. This is not of national interest. The security of the banks has become a cause of worry for the regional banks. The recent upsurge in the technological advancements such as increased establishments of ATM's could cause frauds and attacks on the ATM's. This is a threat to the safety of the customer's money and bank's astounding prestige. The cost of funding in the banks is rising at a stepper rate. The greater number of credit card could point to the same problem of bad loans. The various brands of the organisation offer abundant credit cards to its customers which could leave the bank rendering.

2.3 Competition

The banking sector in UAE came to being in 1980 and the money from the oils gave way to the sudden development of various banks. There are about 46 financial institutions in the region, of which 21 are National and 25 are Private. The Emirate NBD is a private bank and faces stiff competition from a whopping 45 banks in such a small region which serves just the 4 million people. The mergers and acquisitions by the bank have paved off as it now owns 19.2 per cent of the total assets making it the leader in the banking sector. It also enjoys 22 per cent of all loans and 18 per cent of all deposits which is quite an accomplishment. By considering the stature it is well ahead of its rivals but still faces competition from these regional banks as it aspires to expand globally. The trend of mergers has been propelled in the rest of Dubai where Banks namely, Commercial Bank of Qatar is buying stakes to increase its percentage of assets. This would distribute the interests of the foreign investors towards the banks and hence, the dividends and profits may go low.

2.4 Product Offering

There are a number of products offered by the bank depending upon their involvement in a brand i.e., the products vary greatly depending upon the customer's involvement in personal, private, priority, business or corporate banking. Credit cards include Dnata Platinum Credit Card (travel benefits), Skywards Infinite Credit Card, Infinite Credit Card, Platinum Credit Card, Business Credit Card, Gold HYPERLINK "../../My Web Sites/marketing strategy/www.emiratesnbd.com/personalBanking/cards/creditCards/silverAndGoldCreditCards/index.html"&HYPERLINK "../../My Web Sites/marketing strategy/www.emiratesnbd.com/personalBanking/cards/creditCards/silverAndGoldCreditCards/index.html" Silver Credit Card, Debit cards offer better shopping and make day to day purchasing easier by making billing more secure and upfront by its set of cards such as Visa, Visa Platinum, and Visa Infinite etc. The investments include International wealth Account and Savings Programme. Personal loans and auto loans can be easily taken. Internet banking and mobile banking are yet another easy way to transact money from one account to other. Several packages can also be availed which offer the best possible services and other offering in a single package to suit to your needs to the fullest. The also offers financial planning and wealth management solutions to its esteemed customers and helps them make fruitful decisions regarding investments. A financial investor is eligible for private banking which is reserved for a very few of the clients. The bank offers many more products such as educational assistance, greater investment plans etc. It has also formed an "Emirates NBD Foundation" to help assist to its cause of Social Corporate Responsibility.

2.5 Keys to Success

To achieve global excellence, the bank needs to attract foreign investors. This could be made a possibility by imbibing trust and satisfaction among customers regarding the organisational product and its offerings/ benefits.

2.6 Critical Issues

The major issues administered by the bank are: To maintain its leadership in the banking sector by providing newer opportunities and benefits to its existing customer base. The increased competition from the financial institutions. Advanced technological reforms bringing in security issues. The funding is mainly governed by the customers. (Emirates NBD, 2010)

3.0 Marketing Strategy

Optimising balance sheet Managing risks Driving Profitability The bank also believes in investing in particular programs to stimulate growth (Emirates NBD, 2009)

3.1 Mission

The sole mission of the Emirates NBD is to gain global recognition as the leading and most dynamic financial service provider in the Middle East. It also aims at implementing IT services to complement the banking experience of its customers. (Emirates NBD, 2009)

3.2 Marketing Objectives

The group aims to increase its capital by expansion and acquiring under-penetrated areas. The growth of Emirates Islamic Bank could be facilitated by acquiring preferred geographies. The bank also aspires to increase its deposits by laying emphasis on funding. It also is determined in offering services to benefit its stakeholders and wide customer base. The risk strategy quantitatively measures the risk associated with an operation hence controls, manages and monitors the risk portfolio of the organisation. (Emirates NBD, 2010)

3.3 Financial Objectives

To maximise customer revenue The performance of the organisation financially should be firm compared to the 1st and 2nd quarter of 2010. The strategic implication of optimising balance sheets must improve liquidity and offer impregnable capital ratios. To enhance further the credit quality and keep the results within expectations.

3.4 Target Markets

The consumer and Wealth Management operation of the bank have seen growth in the number of customers amidst recession. The private banking sector was even recognised for its outstanding growth. With continued focus on liquidity and structured relationship with the customers the wholesale banking reported a staggering growth of 23% over last year. The credit fastening and retrieval of equity helped the company gain on the global front. Network International also recorded growth as it quickened the growth of credit card diligence. The company has been operating on newer IT services which have provided several resources to secure their customers.

3.5 Positioning

The Emirates NBD is positioned at the top of the chart in terms of assets and enjoys extensive opportunities to grow in wide array of features. The company has been improving on its security issues by implementing advanced IT services. The internal relations among the employees are cordial and bank offers its customers with services that are at par with their expectations. The top management and Board of Directors work in unison to make it possible.

3.6 Strategies

The objective of the company is to establish itself as the leading bank in the retail and corporate sector. This could be done by Increasing the deposits by lowering the loan scheme The funding process should be reviewed and implemented to retain liability. The interests of the customer should be of paramount importance Expansion could serve as the perfect solution to unveil opportunities Risk management would ensure control and corporate governance (Emirates NBD, 2009)

3.7 Marketing Mix

The elements of Marketing Mix are:

Product

There are several products from credit cards to debit cards and investments. A product must also be differentiated from other competitors. Here, the product is categorized into several brands where the brand value increases with customer loyalty and financial investments. Wealth Management and financial service solutions are other offerings and benefits.

Pricing

The pricing is generally the amount paid to the bank for maintenance and security of the customer's account. Interest is also charged on loans.

Advertisement and Promotion

This would ensure regional and global familiarity and can be achieved by some methods.

Customer Services

The benefits to the customer and remaining at par with the customer expectations are the ways of customer care.

3.8 Marketing Research

The bank has a specialised unit to look into the matters of research in terms of available growth opportunities and enhancing security by not compromising with customer care. The results of the extensive research are: By increasing the gap between the expenses incurred and income generated, such that expenses are lowered would cut costs. The key to greater success lies in substantive investment in technology and infrastructure along with policy making. To manage the credit quality and reduce risks, the loans must be decreased. The individual branding of the products does help in independent progress and improvement of the products for prospective customers.

4.0 Financials

The financials of the organisation would be examined by sales and expense forecast to see whether the results comply with the marketing strategy pursued by the bank.

4.1 Sales Forecast

The bank has been earning revenues more in 2009 than 2008 which shows that the strategic implications have been revealed by the financial statements. The profit is quite evident in all areas expect in share of associates and joint venture which did not payoff in the year 2009. 2009 AED 000 2008 AED 000 Interest income 11,972,238 11,155,912 Income from Islamic Financing and investment product 1,352,115 1,180,257 Fee and commission income 2,593,574 2,997,620 Net gain/ (loss) on trading securities 170,096 (136,360) Other operating income 1,300,156 502,935 Share of (loss)/profit of associates and joint ventures (161,069) 338,575 Earnings per share 0.60 0.66

4.2 Expense Forecast

The bank has been able to keep its expenses to the minimum and its strategic policies have paid off as the expenses in various categories are low in comparison to previous year. The administrative expenses will be greater as the bank expanded over the year and increased its human capital. 2009 AED 000 2008 AED 000 Interest expense 5,205,173 5,746,922 Distribution to depositors and stockholders 707.039 755,436 Fee and commission expense 628,230 751,280 General and Administrative expense 3614,804 3,355,602 Earnings per share 0.60 0.66

5.0 Controls

The report or the marketing plan is constructed to channelize future developments and monitor the implications on the performance spectrum: A report compromising of the quarterly and yearly revenues generated by the bank A report compromising of the quarterly and yearly expenses incurred by the bank To introspect the customer satisfaction To administer new product development

5.1 Implementation & Marketing Organisation

The banks in the region are taking advantage of the Ramadan, a holy month to advertise Islamic Banking. The increase in the expenses due to the advertisements is expected to grow staggering 40 per cent. The Islamic Banks are expected to grow at a rate of 15 per cent annually which would affect the asset management. The bank is also expected to lure the customer interest by offering packages, car loans, hence expanding the Emirates NBD PJSC of Dubai. (Banks set up marketing campaign)

5.2 Contingency Planning

Difficulties and Risks

The credit card risk associated with corporate banking are reviewed regularly and managed by certain formulated policies and procedures to reduce the risk. The market and liquidity risk are prevented by diversifying the resources in case of market instability to safeguard the interests of the customer and investors. The introduction of Internal Rating System Development and launching a program based on net would result in security issues.

Worst Case Risks

The banks are funded mainly by the customers, which could result in problems in case of shortage of customer base. The liquidity risk which would result in loss of intellectual capital.

Interview

An interview with an official of the bank was important to gather information on the company's marketing policies and strategies. The bank has been performing great and above expectation in spite of the recession hitting the global arena. How has the company managed to withstand these areas? The company follows a dynamic business model with a coordinated human capital which helps them to adapt to changing enterprise environment. Ours is a leading bank in the region and since the Dubai Financial Market remained steady in the amidst recession and blooming oil prices, the recession did not pose much of a threat to our increasing customer base. We relied on giving lesser loans and dropping the loans by 5% to increase deposits which were a success as the bank saw an increase of 10% in deposits from last year in 2009. How would you illustrate the increasing competition in Middle East among the Banks? The competition has been rough as many of the banks have started with our policy and strategy of merger and acquisition. After our bank rebranded our products and formed the largest bank in terms of assets many of the banks such as the Commercial Bank of Qatar began the same operations of mergers to gain greater customer base and diversify their capital. This has prompted us to take bigger steps such as setting up a Private Bank for our loyal customers in Abu Dhabi and follow newer set of Corporate Governance rules to keep ahead. You have set up a Private Bank and a Business Bank in Abu Dhabi. What's going on with that? Well, the plan is pretty clear as it is. We want to provide our valued customers with financial and wealth management solutions. The development of Abu Dhabi is a rich prospectus as it would be our passage to the outer world to increase the global participation. With global reach we would see larger investors in terms of number and quality. The Rebranding of the Bank was a brave decision. Has it helped? Yes, indeed. Rebranding is always a challenge when two bigger mergers are there. For our bank the merger was beneficial and also provided us with unique and distinctive opportunities. To categorize our products and recognising them as individual and separate brands, gave us the opportunity to work on them individually. Thus, we are more diverse and stable than ever.

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