Investor Presentaiton
UAE Banking Market Update
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)
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
AED Bilion
UAE Banking Sector Growth (AED billion)
1.800
46%
1.800
40%
1.400
35%
1,200
30%
1,000
800
800
400
200
0
639
506
698
643
1,223
758
1,480
934
1,562
993
1,662
1,093
1,672
1,222
25%
20%
15%
10%
6%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 Q3
2011
Banking Assets
Nominal GDP Loans & Advances
Source: UAE Central Bank, EIU, Emirates NBD estimates
Banking Assets
USD billion
➡ UAE (1)
KSA
Kuwait
1.672
401
Qatar
188
168
Bahrain(2)
48
Oman
43
Assets
% GDP(3)
466
132%
72%
84%
103%
198%
83%
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
YoY Growth %
Deposits
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