Investor Presentaiton
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 1 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)
2,000
45%
1,800
40%
1,600
35%
1,400
30%
1,200
25%
1,000
800
600
400
200
331
273
367
321
448
387
639
506
859
643
1,223
758
1.480
934
1,562
993
1,662
1,093
1,734
1,264
1,774
1,273
20%
15%
10%
5%
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Banking Assets
Nominal GDP Loans & Advances
Source: UAE Central Bank, EIU, Emirates NBD estimates; Banking Assets as at Mar 2012
0%
YoY Growth %
Deposits
Loans
218
932
1,150
Deposits 209
938
1,146
Assets
311
1,507
■ Emirates NBD
Other Banks
Source: UAE Central Bank Statistics as at Mar 2012, ENBD data as of Q1 2012.
Loans and Assets presented gross of impairment allowances
Emirates NBD
Banking Assets
USD billion
UAE(1)
KSA
Qatar
191
Kuwait
1,818
Bahrain(2)
47
Oman
48
159
412
Assets
% GDP(3)
472
137%
72%
67%
105%
97%
1)
Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2011 forecasted.
UAE, KSA, Qatar, Kuwait, Bahrain and Oman as at 31 Dec 2011.
Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts
194%
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