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 NBDView entire presentation