Investor Presentaiton
Associate:
Shareholding Nature of Business
Group %
Country of
(Consolidation/
of Accounting
Treatment
Investment
Description
Incorporation Accounting)
National General Insurance Company
PSC
36.7
General and life insurance
Dubai, U.A.E.
Equity
Accounting
Description
of Regulatory
Capital Treatment
Deduction from
capital/neither)
(Consolidation/
Neither Included
in gross credit
exposure as
investment at
carrying value
Bank's total
interests
(current
book value)
in insurance
entities
(AED 000)
183,962
1
SPE for asset securitisation
Consolidation
Consolidation
Emirates NBD Global Markets Limited
SPE for funding purpose
Consolidation
Consolidation
ENBD Asset Finance Company No.1 DAC
(under liquidation)
SPE for asset securitisation
Consolidation
Consolidation
ENBD Asset Finance Company No.2
Limited
SPE for asset securitisation
Consolidation
Consolidation
Emirates NBD Tier 1 Limited
SPE for funding purpose
Consolidation
Consolidation
Emirates NBD 2014 Tier 1 Limited
SPE for funding purpose
Consolidation
Consolidation
EIB Sukuk Company Limited
SPE for asset securitisation
Consolidation
Consolidation
El Funding Limited
SPE for asset securitisation
Consolidation
Consolidation
Other entities consolidated by the
Group based on an assessment of
control are as follows:
Group Tranche of Emblem Finance
Company No. 2 Limited
5
EMIRATES NBD BANK PJSC - BASEL II - PILLAR III DISCLOSURES FOR THE YEAR ENDED 31 DECEMBER 2020
9
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL III
The CBUAE issued Basel III capital regulations, which came into effect from 1 February 2017 introducing minimum
capital requirements at three levels, namely Common Equity Tier 1 ('CET1'), Additional Tier 1 ('AT1') and Total
Capital.
Additional capital buffers (Capital Conservation Buffer and Countercyclical Capital Buffer - maximum up to 2.5%
for each buffer) have been introduced over and above the minimum CET1 requirement of 7%.
For 2020, as per the TESS standards, Capital Conservation Buffer is required to be kept at 1% of the Capital base.
Countercyclical Capital Buffer is not in effect and is not required to be kept for 2020.
Over and above additional capital buffers, the Group as a D-SIB is required to keep an additional D-SIB buffer of
1.5% of the Capital base. However, this requirement is exempt as per the TESS standards.
Regulatory Capital
The Group's capital base is divided into three main categories, namely CET1, AT1 and Tier 2, depending on their
characteristics.
CET1 capital is the highest quality form of capital, comprising share capital, share premium, legal, statutory
and other reserves, fair value reserve, retained earnings, non-controlling interest after deductions for goodwill
and intangibles and other regulatory adjustments relating to items that are included in equity but are treated
differently for capital adequacy purposes under 'CBUAE' guidelines.
AT1 capital comprises eligible non-common equity capital instruments.
Tier 2 capital comprises qualifying subordinated debt, and undisclosed reserve.
The capital overview as per Basel III framework is given below:
Available capital
Common equity tier 1 capital
Tier 1 capital
Total eligible capital
Risk-weighted assets
Credit risk
Market risk
Operational risk
2020
AED 000
2019
AED 000
67,134,947
65,452,344
77,514,733
74,559,700
82,434,262
79,375,840
393,562,281
385,291,210
14,600,122
10,190,488
38,291,452
33,027,671
446,453,855
428,509,369
Total risk-weighted assets
The capital adequacy ratios as per Basel III capital regulation are given below:
Capital Ratio
a. Total capital ratio for consolidated Group
b. Tier 1 ratio only for consolidated Group
c. CET1 ratio only for consolidated Group
2020
2019
18.46%
18.52%
17.36%
17.40%
15.04%
15.27%
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