Credit Quality Overview
UAE Banking Market Update
Bank deposit and loan growth*
Highlights
UAE Banking sector is the largest by assets in the GCC;
sector is dominated by 23 local banks which account for more
than 75% of banking assets; 28 foreign banks account for the
remainder
Total bank loan growth has been relatively stable, reaching
7.2% y/y in August. Total bank deposit growth accelerated to
11.9% y/y in August, up from 7.0% in February. The (gross)
loan to deposit ratio eased to 94.8% (Aug) from ~100% at end-
2013
• In the past couple of years the Central Bank of the UAE has
sought to play a stronger role in the oversight and governance
of the Banking Sector in the UAE
6%
4%
2%
0%
-2%
-4%
Composition of UAE Banking Market (AED
Bn)
Gross Loans 275
1,158
1,433
Deposits 250
1,172
1,422
Assets
354
1,919
Emirates NBD
18%
16%
14%
Bank deposits (% y/y)
Bank Loans (% y/y)
12%
10%
8%
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Source: UAE Central Bank, *loan growth gross of provisions
GCC Banking Market
Banking Assets
USD Bn
Assets
% GDP(3)
UAE(1)
KSA
Qatar
Kuwait
2,273
Bahrain(2)
49
Emirates NBD
Other Banks
Source: UAE Central Bank Statistics as at Aug 2014, ENBD data as of Q3 2014.
Oman
63
619
547
272
196
73
71
106
125
140
1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2014 forecasted.
Oman and Bahrain as at Jul 2014; UAE, Kuwait and Saudi as at Aug 2014; Qatar as at Sep 2014;
Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts
146
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Feb-14
Apr-14
Jun-14
Aug-14View entire presentation