NBAD Soars on Malaysia Islamic License Plan: Abu Dhabi Mover
Stock Chart for National Bank of Abu Dhabi PJSC (NBAD)
The shares jumped 4.4 percent, the most since Oct. 30, to 8.83 dirhams at the close in the emirate. The benchmark ADX General Index (ADSMI) advanced 1 percent.
The Abu Dhabi-based lender wants to expand after starting non-Islamic commercial banking operations in Southeast Asia’s third-largest economy in July, Leong See Meng, chief executive officer of National Bank of Abu Dhabi Malaysia Bhd, said in an interview in Kuala Lumpur Sept. 7. Malaysia’s Islamic banking assets rose 21 percent to 359 billion ringgit ($115 billion) in July from a year ago, driven by government incentives for Shariah-compliant products, according to central bank data.
“Investors liked the news that NBAD is venturing into Islamic banking in Malaysia,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.
National Bank of Abu Dhabi was among five foreign institutions, including Indonesia’s PT Bank Mandiri, which received central bank approval in 2010 to begin non-Shariah banking operations. “There are opportunities across the board,” Leong said.
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