Financial and Operating Performance

UAE Banking Market Update Highlights UAE Banking Sector Growth (AED billion) UAE Banking sector is the largest by assets in the GCC 1,800 The sector is dominated by 23 local banks which account for more than 75% of banking assets; 28 foreign banks account for the remainder 1,600 1,400 1,662 1,562 1,480 1,223 UAE loan growth has outstripped deposit growth before H1 2008 1,200 UAE Banking system liquidity tightened in 2008 due to outflow of c. AED 180b of speculative capital and the Global credit/liquidity crisis following the Lehman's collapse Government intervention during H2 2008 and 2009 helped improve liquidity and capitalisation: - Additional liquidity facilities from UAE Central Bank - AED 50b deposited into local banks; option to convert to LT2 capital Deposit & capital market guarantees announced - Tier 1 injections by Abu Dhabi (AED 15b) and Dubai Governments (AED 4b) Source: UAE Central Bank, EIU, Emirates NBD estimates 1,000 859 800 639 600 448 331 367 400 200 273 321 387 506 643 758 934 915 948 0 2002 2003 2004 2005 2006 2007 Banking Assets Nominal GDP 2008 Loans & Advances 2009 2010 Deposits Composition of UAE Banking Market (AED billion) Loans 205 883 1,088 Deposits 200 850 1,050 Assets 295 ■ Emirates NBD 1,367 Other Banks Source: UAE Central Bank, 31 December 2010 Loans and Assets presented gross of impairment allowances Emirates NBD 1,662 GCC Banking Market Banking Assets USD billion Assets % GDP UAE(1) 453 175% W KSA 377 91% Kuwait 147 133% Bahrain(2) 45 45 212% Oman 41 Qatar 32 1) Includes Foreign Banks; 2) Excludes Foreign Banks Saudi, UAE, Kuwait, Qatar as at 31 Dec 2010; Bahrain, Oman as at 31 Oct 2010 Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts 29% 83% 6

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