Emirates NBD, the largest regional bank by assets, is planning to start investment banking operations in Saudi Arabia, according to senior officials. Confirming that the bank has obtained a license for investment banking operations in the Kingdom, Rick Pudner, chief executive officer of Emirates NBD, said the bank is planning to launch investment banking in the Kingdom by the fourth quarter of 2008. Commenting on the expansion of the bank in Saudi Arabia, Pudner said the bank is looking at both organic growth and expansion through acquisitions. “As for the organic growth we have applied for more branch licenses in Saudi Arabia. As far as acquisitions are concerned we are looking at some opportunities. We are very optimistic about the branch licenses.” Announcing the second quarter financial results on Tuesday, the bank said the creation of Emirates NBD through the merger of Emirates Bank and National Bank of Dubai is delivering synergies that are much more than anticipated. In the first half of 2008, Emirates NBD has executed initiatives to deliver annualized recurring synergies of AED178 million and one-off synergies of AED22 million. These exceed the full year 2008 target by 61 per cent. The recurring synergies are ahead by 55 percent and one offs synergies are ahead by 144 percent. “Realization of synergies demonstrates the outstanding progress in integration and Group's continued focus on ensuring that the merger is delivering value to the shareholders,” said Sanjay Uppal, chief financial officer of Emirates NBD. Emirates NBD posted a 45-percent jump in second-quarter net profit as the regional economic boom fuelled lending and fee income. Emirates NBD said it earned AED1.47 billion ($400.3 million) in three months to June 30.
