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Investor Presentaiton

6% 5% 4% 3% 2% 1% 0% -1% -2% Jan-08 May-08 EIBOR - LIBOR spreads UAE Economic Update (cont) Highlights • Total bank loan growth eased to 5.63% y-o-y in October from a 2013 peak of 7.35% y-o-y in August. UAE loan growth shows a steady improvement, particularly in the retail and personal loan segment . Deposit growth in the UAE still outpaces loan growth; bank deposits grew 10.6% y-o-y in October, and the cumulative increase in bank deposits year-to-October 2013 was AED117.3bn, compared with a AED92.6bn increase in deposits over the same period 2012; consequently, the loans-to-deposit ratio was at 90.1%, near the lowest level in at least five years. • 3M EIBOR rate continued to ease as liquidity in the banking system improved. Dubai CDS remained near multi-year lows, reflecting confidence in the economic recovery and prospects for growth going forward. UAE CDS spreads bps 750 650 550 450 350 250 150 50 60-լոՐ Dubai (Ihs) Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12 Abu Dhabi (rhs) Jul-12 Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 Source: Bloomberg, Emirates NBD Research EIBOR ⚫LIBOR Spread 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 -4% Aug-09 Source: Bloomberg, Emirates NBD Research Bank deposit and loan growth* Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Bank deposits (% y/y) Bank Loans (% y/y) Aug-11 Dec-11 Apr-12 Source: UAE Central Bank, *loan growth gross of provisions Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 5 250 230 210 190 170 150 130 110 90 70 50 bps Emirates NBD
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