Emirates NBD Operating Costs and Efficiency Highlights
bps
-50
50
50
150
-150
Jan-08
Source: Bloomberg
Emirates NBD
250
UAE Economic Update (cont'd)
Highlights
Liquidity conditions have tightened, even as Eibor rates have remained
largely flat.
■ Bank lending remains relatively weak at 2.2% y-o-y in August. Deposit
growth has slowed and banks' holdings of certificates of deposits have
declined.
■ Dubai CDS spreads have widened again since the end of July, largely on the
back of global developments. Consequently, debt issuance has fallen sharply
over the summer.
3M EIBOR - LIBOR spread tightens further in Q3 2011
350
Jan-09
Jan-10
Jan-11
CDS spreads have widened again in Q3 2011
550
170
500
450
150
130
400
bps
350
110
300
90
250
200
70
Jan-11 Feb-11 Mar-11
Apr-11 May-11 Jun-11 Jul-11
Dubai (Ihs) Abu Dhabi (rhs)
Aug-11 Sep-11
Source: Bloomberg, Emirates NBD Research
Bank deposit and loan growth
18
16
Bank deposits
Bank Loans
8 64208642
14
12
10
YoY Growth %
-2
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Source: UAE Central Bank
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
5
Sep-11View entire presentation