Emirates NBD PJSC, (EMIRATES) Dubai’s biggest bank, hired Shayne Nelson from Standard Chartered (STAN) Plc as chief executive officer to succeed Rick Pudner, who is scheduled to leave at the end of the year after eight years in the job.
Nelson was the CEO of Standard Chartered Private Bank with additional responsibilities for small- and medium-sized enterprise banking, the lender said in a statement to Nasdaq Dubai today. In 2006, Nelson was the regional CEO for the Middle East and North Africa as well as the CEO of the United Arab Emirates for Standard Chartered, the company said.
“Shayne’s years of experience and expertise in the financial-services industry will drive Emirates NBD to continue delivering excellent results,” Sheikh Ahmed Bin Saeed Al Maktoum, Emirates NBD’s chairman, said in the statement.
Nelson’s appointment comes after state-controlled National Bank of Abu Dhabi PJSC, the United Arab Emirates’ biggest lender by assets, hired Alex Thursby in April from Australia & New Zealand Banking Group Ltd. (ANZ) as CEO. Thursby will next month succeed Michael Tomalin, who retires after 14 years in the job.
Emirates NBD suffered from a rise in debt defaults and a surge in loan-loss provisions after the 2008 global credit crisis triggered a real estate crash in Dubai, one of seven emirates that make up the U.A.E. Dubai’s economy is now recovering as its tourism, trade, retail industries rebound.
Emirates NBD’s shares fell 1 percent to close at 4.85 dirhams today, paring gains this year to 70 percent. Dubai’s benchmark share index has risen 40 percent this year.
Nelson previously held a number of positions in two of Australia’s major banks, Westpac Banking Corp. (WBC) and National Australia Bank, according to today’s statement.
The U.A.E., the second-largest Arab economy, has the biggest banking market in the six-nation Gulf Cooperation Council, which also includes Saudi Arabia. Annual profit at Emirates NBD may climb 10 percent to 2.81 billion dirhams ($764 million), according to the mean estimate of seven analysts.
Pudner joined the bank when it was called Emirates Bank International PJSC and oversaw its merger with National Bank of Dubai PJSC in 2007 that created Emirates NBD. He helped the bank expand in Saudi Arabia, the biggest Arab economy, where Emirates NBD has both a retail and investment banking license.
Emirates NBD in December acquired the Egyptian unit of French bank BNP Paribas SA (BNP) in a $500 million deal, helping it enter the most populous Arab country. Emirates NBD is keen to expand in the Middle East, North Africa, Turkey and Islamic nations in south and south east Asia, the bank said in December.
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