3 Organisations overview 3

3 Organisations overview
3.1 Emirate NBD
Emirate NBD is established in October 2007 and two banks Emirates Bank International and National Bank of Dubai for establishing this bank. The main products of Emirates NBD are the financing of different types that include car finances, loan and house financing. Currently, the profile of the bank includes 277 branches and furthermore, has increased its capital adequacy in the last five years. Currently, Emirates NBD is standing in the industry with the assets of AED 477.75 billion and the income of the bank has been increased from 14.87 to 15.5 AED billion in 2017 (Emirate NBD 2018).
3.2 Abu Dhabi Islamic bank
Main products of the banks are wealth management services, financing of the car, house and insurance etc. Capital structure and the income have been decreased in 2017 as compared to 2016. The assets of the firm have been increased in the recent year by 1% and customer financing has also been increased. Total overall equity of Abu Dhabi Islamic bank has been decreased by -0.2%. Investment income of the bank has been dropped in the 2018 quarter and it is evaluated that in 2017 the bank’s performance has been decreased in the recent years (ADIB, 2018).
4 Literature review
According to the Alipour et al. (2015) capital structure of the firm is based on the assets and equity. Debt to equity ratio is also been expressed as the capital structure of the firm. Firms mostly focused on declining their liabilities because it is a burden that a firm has to pay in the form of interest and the interest rate created issues for the firms. The capital expenditure and acquisitions are used for the financing of the firms. It has been further evaluated in the study of Haq et al. (201) interest rate is feasible for the bank borrowers assets are actually the financing and business of the banks. The income of the bank is created by financing the customers. The tax is a benefit for the banks because higher income would be generated in the days when taxes are higher. The BASEL III are the rules and regulations that may affect the banking income and capital structure.