Investor Presentation August/September 2009
UAE Banking Market Update
Highlights
UAE L&R growth has outstripped deposit growth in recent years
UAE Banking system liquidity tightened in Q3 2008 due to outflow of c. AED 180b of
speculative capital & the Global credit/liquidity crisis following the Lehman's collapse
Dubai and Abu Dhabi CDS spreads have widened on concerns over Dubai Inc.'s debt
and concerns over the real estate market
Government intervention has been welcome:
AED 50b backstop facility from MOF
UAE Banking Sector Growth (AED billion)
859
639
448
AED 70b set aside for direct injection into UAE banks; AED 50b deposited to date;
option to convert to LT2 capital
331
367
Deposit & capital market guarantees announced: formal documentation soon
1,480
1,523
1,223
-
Abu Dhabi Government injected AED 16b of Tier 1 capital into the Abu Dhabi banks
Dubai Government injected AED 4b of Tier 1 capital into Emirates NBD
Government of Dubai announced a $20b bond program of which $10b was bought
by the UAE Central Bank
Dubai and Abu Dhabi Government CDS Spreads (bps)
859
698
599
485
386
261
294
2002
2003
2004
2005
2006
I Banking Assets
Nominal GDP
2007
Loans & Advances
2008
H1 2009
- Deposits
Source: Central Bank statistics, Emirates NBD forecasts and Bloomberg
GCC Banking Market
1,000
Country
Banking assets
(USD billion)
800
UAE (1)
600
Saudi Arabia
400
Kuwait
134
Qatar
111
200
Bahrain (2)
48.5
0
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oman
36
1) Includes Foreign Banks
Abu Dhabi Govt 5yr CDS
Dubai Govt 5yr CDS
2) Excludes off-shore banking units
Source: Markit Partners; Bloomberg
Emirates NBD
Assets/Nom.
(GDP %)
403
172
351
79
89
75
Source: National Central Banks December 2008 and Emirates NBD forecasts
124
264
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