Emirates NBD Operating Costs and Efficiency Highlights
UAE Banking Market Update
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Highlights
UAE Banking sector is the largest by assets in the GCC; sector is
dominated by 23 local banks which account for more than 75% of banking
assets; 28 foreign banks account for the remainder
UAE Banking system liquidity tightened in 2008 due to outflow of c. AED
180 billion of speculative capital and the Global credit/liquidity crisis in Q3
2008
Government intervention during H2 2008 and 2009 helped improve
liquidity and capitalisation:
- Additional liquidity facilities from UAE Central Bank
- AED 50 billion deposited into local banks; option to convert to LT2 capital
- Deposit & capital market guarantees announced
- Tier injections by Abu Dhabi (AED 15 billion) and Dubai Governments
(AED 4 billion)
Composition of UAE Banking Market (AED billion)
AED Billion
UAE Banking Sector Growth (AED billion)
1,800
1,600
45%
40%
1,400
35%
1,200
30%
1,000
25%
800
20%
600
15%
400
10%
200
0
5%
0%
331
273
367
321
448
387
639
506
859
643
1,223
758
1,480
934
1,562
993
1,662
1,093
1,672
1,222
2002 2003 2004 2005 2006 2007 2008 2009 2010 Q3
Banking Assets
YoY Growth %
2011
Deposits
Nominal GDP Loans & Advances
Source: UAE Central Bank, EIU, Emirates NBD estimates
Loans
209
932
1,141
Deposits 184
884
1,067
Assets
272
1,400
Emirates NBD
Other Banks
Source: UAE Central Bank 30 Sep 2011
Loans and Assets presented gross of impairment allowances
Emirates NBD
➡UAE (1)
KSA
Banking Assets
USD billion
Qatar
166
Kuwait
1,672
Bahrain(2)
46
Oman
43
43
156
Assets
% GDP(3)
455
132%
401
72%
94%
63%
103%
196%
1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2011 forecasted.
UAE & Kuwait as at 30 Sep 2011; KSA, Qatar, Bahrain & Oman as at 31st Aug 2011.
Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts
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