COMPANY PROFILE -Emirates NBD
Business Sector :Banking and Financial Services
Operating Geography :UAE, Middle East, Global
About Emirates NBD :
Emirates NBD formed on 19 June 1963 is currently the leading banking group in the MENAT region and one of the largest banking brands in UAE. Emirates NBD is an influential player in the UAE corporate segment and an important member of the global digital banking industry. Being listed on the Dubai Financial Market, Emirates NBD has a vital long-term impact on the UAE's economy. The company has a notable retail banking franchise that renders strong Islamic banking, investment banking, private banking, digital solutions, asset management, global markets & treasury, and brokerage operations. Besides its firm operations in the UAE and the kingdom of Saudi Arabia, Emirates NBD sought the opportunity of global expansion by setting up its operations in Egypt, India, Turkey, Singapore, the United Kingdom, Austria, Germany, Russia, and Bahrain, along with representative offices in China and Indonesia. The company aims at driving more business across international locations by facilitating expansion plans in KSA and India, continuing its strategic growth momentum in Egypt, and further developing competitive niches through its presence in London and Singapore. As of early 2021, Emirates NBD employs more than 25,000 people coming from more than 70 different nations, thus making it one of the largest and most culturally diversified employers in the UAE. As a leader in the banking sector of the UAE, Emirates NBD is a diplomat of economic and social progress for the entire UAE to the world.
For the year 2020, Emirates NBD focused mainly on the following business strategies VIZ., focus on innovative digital solutions to provide excellent customer experience, accelerate the core business model, stimulate global expansion, enhance the organization's efficiency and performance.
Emirates NBD on Feb 18th, 2020 published that it has been recognized for its pioneering efforts in providing value-added products and innovative digital services to SMEs and startups. Hence the company is regarded as the Best SME Bank of the Year - 2019’ at the prestigious International Finance Magazine (IFM) Awards. Furthermore, the bank has been ranked among the top 20 in the Forbes’ third annual list of the World’s Best Regarded Companies. It was also awarded ‘Best Digital Bank in the Middle East’, ‘Best Bank in the UAE’, and ‘Best Investment Bank in the UAE’ by Euromoney Awards for Excellence 2019. Besides, with a value of USD 4.13 billion, Emirates NBD was lately recognized as the UAE’s most valuable banking brand by the Banker’s annual brand valuation league table.Emirates NBD's USP or Unique Selling Proposition sprawls in being the UAE's most valuable banking brand, one of the largest banking groups in the Middle East in terms of assets, and one of the leading brands in banking and financial sector as of 2020.
Emirates NBD’s mission statement reads “Every day we make our customers’ lives simpler by providing solutions to help them fulfil their financial aspirations.” Emirates NBD’s vision statement is “To be globally recognized as the most valued financial service provider in the Middle East.”
Emirates NBD Revenue :
AED 22.4 billion – FY ended Dec 2019 (year-on-year growth of 29%)
AED 17.4 billion – FY ended Dec 2018
Competitive Analysis of Emirates NBD
On March 6th, 2007, UAE's banking and financial service sector witnessed the merger of the National Bank of Dubai (NBD) with Emirates Bank International, the second and fourth-largest banks in the UAE respectively. This consolidation led to the formation of the current Emirates NBD, one of the largest banking groups in the Middle East in terms of assets. As of 31st March 2020, Emirates NBD's total assets value AED 692 Billion, equivalent to approx. 188 Billion US dollars. Thus, SWOT analysis helps to identify the most prominent strategic initiatives that strengthen the company and benchmark its competitive stance in a highly competitive environment. Further, the report also displays the low-hanging fruits that could be consolidated in order to attain a competitive advantage. The SWOT analysis manifests a discussion on all the pertinent factors specifically the strengths. weaknesses, opportunities, and threats that predominate Emirates NBD's internal and external environment respectively. Besides, The SWOT report also depicts the impact of all the micro and macro factors on Emirates NBD's business model, business tactics, growth, and marketing strategies.
Emirates NBD is a powerful and largest banking brand in the UAE with 967 branches and 4,323 ATMs / SDMs as of 2020, consequently presents the company with a competitive advantage over its adversaries. Furthermore, internal strategic factors like the diversified portfolio of banking services, innovative digital solutions for SME's and startups, a huge asset base in the Middle East, solid historical and financial foundations, number one ranking in the banking sector in the UAE, large social media following, recognized for corporate and social responsibility, etc. are few amongst many strengths of Emirates NBD.
Currently, Emirates NBD has a limited global presence compared to that of its competitors. Also, it is highly dependent only on the UAE market which implies limited market share for the brand. Thus, by seeking opportunities for global expansion, Emirates NBD could surmount its weakness. The recent acquisition of DenizBank serves the purpose and is a significant milestone for Emirates NBD with the Group extending its occupancy to 13 countries, sustaining over 14 million customers.
Highly competitive market, limited market share, phishing attacks, thefts, volatile costs, fluctuating currency rates, etc. are key threats that prevail in Emirates NBD's external environment.
The SWOT analysis of Emirates NBD is presented below:
Strengths | Weaknesses |
1. Stable shareholder base and diversified business model
2. Leading in innovations in digital banking
3. Leading the way in the Islamic Finance Market through Emirates Islamic
4. Consistent financial performance history with strong ratings
5. One of the largest banks in GCC and leading bank in the MENAT region
6. Top banking brand in the UAE and worldwide
| 1. Reduced in headcount amid economic downturn and property market weakness |
Opportunities | Threats |
1. Official banking partner of Expo 2020 Dubai
2. Expansion in the Kingdom of Saudi Arabia (KSA)
3. Attractive growth prospects in Indian markets
| 1. Political instability, tensions and civil wars in Middle East region
2. Slowdown due to pandemic and weak oil prices
3. Lower consumer sentiment and delays in leveraged finance investments
|
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Detailed SWOT Analysis of Emirates NBD
Strength
1. Stable shareholder base and diversified business model: Emirates NBD, enjoys the advantage of having a cooperative shareholder base from the Government of Dubai mainly through the Investment Corporation of Dubai. The bank services the corporate, consumer and Islamic banking sectors through a well-diversified and balanced asset composition. The acquisition of DenizBank has further helped the bank expand its geographical reach significantly. As of 2020, NBD has its foreign ownership limit at 20% compared to the erstwhile 5% of September 2019. Emirates NBD has plans to increase this limit to 40% in the near future.
2. Leading in innovations in digital banking: The AED 1 billion digital transformation project announced by Emirates NBD has helped the bank make rapid strides in the fulfillment of its digital agenda. The bank has also been focusing significantly on innovation in the local and regional banking sector in 2019. The above mentioned project is expected to help the bank in improving its end-to-end IT capabilities across IT architecture, operations, governance and security. It is expected that the bank will also find it easier to handle comprehensive data management and ensure faster delivery. The Amazon Web Services have been utilized by the bank to launch Emirates NBD Voice Banking. In support of the Dubai government’s plan to encourage paperless services and transactions, the bank has also introduced a fully digital account opening process in 2019, making it easier for customers to open an account using their smartphones. The digital transformation drive initiated by the bank has caused it to gain several regional and global firsts. A number of important industry awards have been presented to the bank like being named the ‘Most Innovative Financial Institution in the Middle East’ by Global Finance at The Innovators 2019 Awards. The Euromoney Awards for Excellence in 2019 also declared Emirates as a digital banking leader by granting it the Best Digital Bank in the Middle East’ and ‘Best Bank in the United Arab Emirates’ awards.
3. Leading the way in the Islamic Finance Market through Emirates Islamic: Emirates Islamic, an Emirates NBD subsidiary, has become the flagship UAE bank with a mobile banking app. The bank has also rewritten Islamic banking by introducing several other innovations like digital wallets. Every cardholder is offered the use of three digital wallets - Apple Pay, Samsung Pay and Google Pay. Its WhatsApp banking service is another such innovation introduced by the bank.
The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threat
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The year 2020 and onwards will mark a massive impact of technological innovations on the banking and financial services industry. These innovations are driven by the following current trends VIZ.,
1. Ongoing digital transformation,
2. Technological innovations in products and services
3. Businesses leveraging FinTech (Financial technologies) to opt for new business models
4. Importance of technologies like Artificial Intelligence, Robotics, Blockchain, Cloud Computing, Cybersecurity, Data Analytics and more
Here is a review of other external influencers like political, economic, social, technological, legal, and environmental, their impression on the banking and financial industry, and largely on Emirates NBD. The PESTLE / STEEPL / PEST analysis report is a structure to examine the consequence of external factors on the macro-environment that influences the business of Emirates NBD. The PESTLE analysis is a useful technique to study the impact of influencers on Emirates NBD’s business model, growth trajectory, its business case, and market strategy.
Emirates NBD encounters political and economic uncertainties due to external factors like geopolitical instability, uncertainties due to Brexit, trade wars, developments in the middle east, fluctuation in currencies, interest rate, inflation rate, taxes, foreign exchange rates, economic downturn, etc.
In order to prepare itself for a future that will be increasingly driven by technology, Emirates NBD's core agenda for 2020 focuses mainly on its digital transformation by launching innovative solutions across all channels. One such innovative solution launched in 2019 was the digital business bank E20 which is the UAE’s first digital business bank for entrepreneurs and SME businesses.
Furthermore, social factors like changing customer preferences, demographics, improving incomes and lifestyles, increasing demand for online transactions and net banking etc. also expect the banks and financial institutions to re-define themselves as versatile technology companies.
Emirates NBD is a responsible brand that not only focuses on Corporate Responsibility that supports community development but also on environmental responsibility for sustainable management of their everyday business activities. To serve the purpose the company has successfully reduced its total Greenhouse Gases (GHG) emissions by 15% between 2018 and 2019, recycled 16,000 kg of paper in 2019, and Celebrated Environmental Awareness Day.
Find below the PESTLE analysis for Emirates NBD Bank presented in a matrix followed by the detailed PESLTE / STEEPL / PEST analysis report:
Political | Economical |
1. Political instability war and terrorism tensions in the Middle East
2. Government support to lift liquidity and lending of banks
| 1. Oil and gas major contributor to UAE’s economy
2. Impact of COVID-19 on UAE’s and global economy
|
Social | Technological |
1. Responsible lending and investments
2. Driving customer engagement through social media
3. Focusing on financial inclusion and accessibility
| 1. Digital transformation to boost innovation in banking
2. Investments for adoption of blockchain in operations
|
Legal | Environmental |
1. Supporting the Emiratization program (Tawteen) for boosting domestic employment | 1. Offering green & social banking choices
2. Proactive approach and initiatives towards environmental sustainability
|
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Detailed Pestle Analysis of Emirates NBD
Political
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Economic
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Social
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Technological
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Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Offering green & social banking choices: Banking needs to be made sustainable by offering customers green and social banking choices. Emirates NBD is emerging as a financial institution which is aware of this need. The bank has moreover realized that its Sustainable Development Goals (SDGs) can show the best results only if its stakeholders are also involved. The bank has thus followed the guidelines of the Ministry of Climate Change and Environment and become one of the 11 banks to sign the United Nations Environment Programme’s Dubai Declaration for Sustainable Finance. The bank has also launched the Green Auto Loan which offers subsidies for electric and hybrid cars. This move is supportive of the UAE vision 2021, which underlines the country’s sustainability vision of turning the UAE into a green, low-carbon economy. The Auto Finance scheme introduced is for electric vehicles only.
2. Proactive approach and initiatives towards environmental sustainability: Environmental protection needs to be brought to the forefront of operations in all banking and financial services organizations. Such establishments need to adopt hands-on approach by assessing and actively managing all environmental risks and impacts. Emirates NBD is already working towards becoming sustainable, in accordance with the UAE sustainability goals of UAE Vision 2021 which seeks to empower local communities while continuing with environmental preservation. Between 2018 and 2019, the bank has succeeded in reducing its total Greenhouse Gases (GHG) emissions by as much as 15%. Nearly 16,000 kg of paper were also recycled by the bank in 2019. Moreover, a significant achievement by the bank was in the form of the esteemed LEED Gold certification being granted to three of its branches located in Arabian Centre, Umm Suqeim and Burj Khalifa.
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TABLE OF CONTENTS
DELIVERY AND FORMAT
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References used in Emirates NBD SWOT & PESTLE Analysis Report
1. About Emirates NBD - https://www.emiratesnbd.com/en/about-emirates-nbd/about-us/
2. Emirates NBD Annual Report - https://www.emiratesnbd.com/plugins/FinanceManagement/AnnualReport/AnnualEnglish/EmiratesNBD_AnnualReport_2019.pdf
3. Emirates NBD FY 2019 Results Presentation - http://www.emiratesnbd.com/plugins/FinanceManagement/QuaterlyReports/PresentationEng/Emirates_NBD_Results_Presentation_Q4_2019_English.pdf
4. Current Credit Ratings for Emirates NBD Group together with the most recent statement by the rating agency on the status and outlook- https://www.emiratesnbd.com/en/investor-relations/ratings-debt/credit-ratings/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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