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Investor Presentaiton

UAE Economic Update (cont'd) Highlights Currently liquidity conditions show improvement; at year-end though reported decline in bank deposits and lower holdings of certificates of deposit by commercial banks ■ Factors contributing to outflow in bank deposits seen in H2 2011 - unwinding of the differential between UAE and US rates debt repayments by GRES - increased remittance outflows as USD strengthened - deposit inflows in Q1 attributed to 'Arab Spring' have moved into other assets in the UAE such as property Tighter liquidity conditions could prevail into 2012, due to - higher LIBOR rates - demand for USD liquidity by European banks - European banks unwilling/unable to roll over loans maturing in 2012 continued deleveraging by GRES EIBOR - LIBOR spreads bps Trends in CDS spreads 600 170 550 150 500 450 130 400 110 350 300 90 250 200 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Source: Bloomberg, Emirates NBD Research ⚫Dubai (lhs) Sep-11 Oct-11 6, Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Bank deposit and loan growth Bank Loans 70 bps 350 250 150 50 50 -50 -150 Jan-08 Source: Bloomberg Emirates NBD Jan-09 Jan-10 Jan-11 Jan-12 18 16 14 % 60% 642 12 10 Bank deposits YoY Growth % -2 Jan-10 Mar-10 May-10 Source: UAE Central Bank Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 5
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