GLOBAL WHOLESALE BANKING

Global Wholesale Banking (GWB) delivered revenue growth of 5% y-o-y in 3Q'16 buoyed by growth across strategic flow businesses as transformation towards an originate to distribute model for core customers continues to take effect. Sequentially, revenues were down 3%, reflecting seasonal volatility and softness in the relationship loan market. Disciplined expense management, with a focus on efficiency, saw costs decline 4% y-o-y with a marginal increase of 1% sequentially in the quarter.

GWB's balance sheet remains strong with customer deposits increasing 10% y-o-y as we continue to utilise our Wholesale network to increase liquidity. Despite challenges, loan growth increased marginally by 2% q-o-q, while the y-o-y decline of 5% was influenced by the Bank's move away from FI Trade (Financial Institutions Trade lending) towards higher yielding assets.

Global Banking's continued focus on its Cash Management proposition drove liquidity improvement of 12% y-o-y and 9% q-o-q.

Global Markets Sales continued to maintain revenue momentum with a focus on providing quality yield solutions for financial institutions, non-banking financial institutions and corporate customers as well as increasing flows across locations. The diversified nature of the business ensured that the flow trading and Investment book's performance helped weather the heightened market volatility and credit conditions.

Highlights from 3Q'16 include:

  • 'Most Innovative Investment Bank in the Middle East' by The Banker - NBAD is the first ever regional bank to win this prestigious award recognising our strengths in bonds, loans and Sukuk
  • Best Treasury and Cash Management Provider in the Middle East by Global Finance
  • 'Best Sukuk House of the Year 2016' in the Global Islamic Finance Awards. NBAD won this same award in 2015 and is first ever winner in successive years.
  • Significant DCM deals on which NBAD was Joint Bookrunner:

- State Bank of India - $300m AT1 30NC5 - first ever international hybrid capital offering from India & NBAD's maiden bond mandate from India

- Burgan Bank - $500m 5yrs senior bond - first ever senior bond issue by a Kuwaiti financial institution

- Emaar Properties - $750m 10yrs Sukuk - lowest ever coupon on a Sukuk from a UAE corporate issuer

- Sultanate of Oman - $1.5b reopening of 2021 + 2026 bonds - largest ever tap issue by a GCC name

National Bank of Abu Dhabi PJSC published this content on 26 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 October 2016 10:51:01 UTC.

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