UAE Economic Update

Bps (in 10s) 2 3 UAE Economic Update (cont) Emirates NBD Highlights • • Bank deposits declined -AED15.1bn (-1.3% m/m, +9.2% y/y) in December. For 2012, bank deposits increased by AED 98.1bn, compared with an increase of just AED 20.1bn through 2011, reflecting increased liquidity in the banking system. Loan growth (net of provisions) was much weaker than deposit growth however, with total loans & advances increasing by just AED 28.1bn last year. 5Y CDS spread for Dubai held steady in Q1, having reached historic lows at the start of the quarter. This reflects ongoing market confidence in the Emirate's ability to meet its debt obligations. bps 510 Trends in CDS spreads Dubai (Ihs) Abu Dhabi (rhs) 160 150 460 140 410 130 360 120 310 110 260 100 210 90 160 80 110 60 70 60 • 3M EIBOR eased further in Q1 2013 as liquidity in the financial system remained high. Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Source: Emirates NBD Research, Bloomberg EIBOR - LIBOR spreads CO 6 5 0 -1 -2 Jan-08 Source Bloomberg Spread EIBOR ⚫LIBOR 18 16 14 12 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 YoY Growth % Bank deposit and loan growth Bank deposits Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Source: UAE Central Bank Oct-12 Dec-12 5 bps

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