Question

In: Operations Management

Select two UAE or other Gulf/Arab banks. You can find their financial statements at the website...

Select two UAE or other Gulf/Arab banks. You can find their financial statements at the website of the UAE central bank or at the website of Dubai Financial Market (http://www.dfm.ae/pages/default.aspx?c=1010 ) or Abu Dhabi Stock Exchange (http://adx.ae/ENGLISH/SECURITIES/Pages/ListedCompanies.aspx ). Be careful to select two banks with similar size (Total assets) and either two conventional banks or two Islamic banks. Do not compare a conventional bank with an Islamic bank. The comparison should be two Islamic banks with each other or conventional banks with each other. You have to analyze their performance in the last 3 years (2016, 2017, 2018).

So, try to follow these points in the analysis: 1. Give a short description of the activity of each bank (when they were created, who are the shareholders, where do they operate, what kind of services they offer and so on)

Expert Solution

Here is the detailed comparison of two reputed banks of UAE- Commerical Bank of Dubai (founded in 1969) and National Bank of Abu Dhabi (founded in 1968). The purpose of this study is to analyse the performance of two UAE based banks betweent the years 2016-2018.

This type of analysis will summarise the performance of each bank based on 2 criterias. - Financial Stability and Overall Performance.

Shareholders details mentioned below for both the banks:-

Commercial Bank Dubai	National Bank of Abu Dhabi
Abdullah Hamad Al-Futtaim (6.95%)	Mubadla Investment Company (37%)
Investment corporation of Dubai (20%)	Abu Dhabi Investment Council Company (33.4%)
Al Futtaim PVT CO. LLC (19.4%)	Mamoura Diversified Global Holding (3.7%)
Ghobash trading and investment Co. Ltd. LLC (6.37%)	Other UAE entities and individuals (46.2%)
Abdel Wahid Hassan Mohammed Al Rostamani (6.10%)	GCC (ex UAE) (1.3%)
Juma Al Majid Group (5%)
HOLDINGS - National General Insurance Co. (P.J.S.C) (17.8%)

Kind of Services

Commercial Bank of Dubai	National Bank of Abu Dhabi
Consumer Banking	Wholesale Banking
Foreign Exchange	Consumer Banking
Corporate Banking	Treasury and Investments
Finance and Insurance	Credit Cards
Wealth Management	Consumer and Business Loans
Consumer and Business Loans	International Banking
Credit Cards

Remarks- NBAD is the official sponsor of Ferrari World Abu Dhabi

Year 2016-2018 - NATIONAL BANK OF ABU DHABI

2016

Total Share Capital	AED 10848800
Net Profit	AED 5296042
Liabilities	AED 374207997
Total Equity	AED 46505503

2017

Revenue	AED 19.5BN
Loans and Advances	AED 331BN
Customer Deposits	AED 396BN
Total Equity	AED 102BN

2018

Liabilities	AED 744125195
Equity	AED 101973000
Net Profit	AED 12066389

Commercial Bank Of Dubai

2016

Equity	AED 8679623
Liabilities	AED 55400153
Assets	AED 64079776
Net Profit	AED 1003065

2017

Assets	AED 32598749
Liablities	AED 30174291
Net Profit	AED 822445
Eqity	AED 7061883

2018

Total Assets	AED 70414057
Liabilities	AED 61333302
Customer Deposits	AED 48411192
Equity	AED 9218726

If we see the above comparison we can easily say that commercial bank of Dubai is the leader in the above bank.

The main activities from both the banks are :-

* Foreign Investment

* Infrastructural Investments

* Forex Investments

Hope this analyses helps in your study. Please comment for any query/clarification.

keosha answered 6 months ago

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