Emirates NBD Investor Presentation
Acquisition of Dubai Bank
◉
Highlights
As per the decree issued by the Ruler of Dubai on 11
October 2011, Emirates NBD acquired a 100% stake in
Dubai Bank
2,588
158
The consideration was AED 10 which equates to the fair
value of net assets acquired
930
■
As on the date of acquisition, there was a zero NPL and
P&L impact by virtue of the transaction structure and the
fair value process of assets and liabilities upon initial
consolidation
■
The fair value of the assets and liabilities was
determined by an external expert
1,500
Strategy and integration plan for Dubai Bank in process of
being finalised
As at 31st December 2011, Dubai Bank added the
following to the Group:
21 Branches
42 ATMs and 15 CDMs and
688 employees
Emirates NBD
Financial Impact Upon Acquisition (AED million)
2,698
-110
1,201
543
0
768
Tier 1, Tier 2
& Reserves
Credit &
other loss
Net Equity
Position
Fair value
adjustments,
FV of MOF
Deposit*
FV of Govt
Guarantee**
Upon
credit &
reserve
Sept. 2011
Acquisition other losses
FV of net
assets
acquired
* In connection with the transaction, the Group has received a deposit from the UAE Ministry of Finance amounting to AED 2.8 billion at a
discount comparable to market rates. This liability was recognised at fair value resulting in a fair value gain of AED 543 million and will be
amortised over the term of the deposit (8 years)
** In connection with the transaction, the Government of Dubai has provided a guarantee for any losses at the date of acquisition and any future
losses relating to the assets and liabilities on the date of acquisition for the next 7 years; an amount of AED 768 million represents the fair value
of the Guarantee as at the date of acquisition
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