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EMIRATES NBDBANK PJSCBASEL II – PILLAR IIIDISCLOSURESFOR THE YEARENDED 31 DECEMBER 2019
REACHING NEW HEIGHTS
EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
BASEL II – PILLAR III DISCLOSURES
Contents Page
Overview 1
Information on subsidiaries and significant investments 4
Consolidated capital structure as per Basel III 6
Gross credit exposure 10
Capital requirement for market risk as per standardised approach 11
Gross credit exposure by currency 12
Gross credit exposure by geography 13
Gross credit exposure by economic activity 15
Gross credit exposure by maturity 17
Impaired loans by economic activity 19
Impaired loans by geography 21
Reconciliation of changes in provision for impaired loans 23
Gross credit exposure as per standardised approach 24
Gross credit exposure as per standardised approach (Rated/Unrated) 26
Exposure subject to deduction as per standardised approach (Rated/Unrated) 28
Credit risk mitigation as per standardised approach 30
Quantitative disclosures for equity position in the banking book 31
1 2EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
OVERVIEW (continued)
Introduction
The CBUAE supervises Emirates NBD (“ENBD” or the “bank”) and its subsidiaries (together referred to as the “Group”) on a consolidated basis, and therefore receives information on the capital adequacy of, and sets capital requirements for, the Group as a whole. The capital requirements are computed at a Group level using the Basel III framework of the Basel Committee on Banking Supervision (“Basel Committee”), after applying the amendments advised by the CBUAE, within national discretion. The Basel III framework, like Basel II, is structured around three ‘pillars’: minimum capital requirements (Pillar I); supervisory review process (Pillar II); and market discipline (Pillar III).
Pillar III disclosures 2019
Pillar III complements the minimum capital requirements and the supervisory review process. Its aim is to encourage market discipline by developing disclosure requirements which allow market participants to assess certain specified information on the scope of application of Basel III, capital, particular risk exposures and risk assessment processes, and hence the capital adequacy of the institution. Disclosures consist of both quantitative and qualitative information and are provided at the consolidated level.
The CBUAE issued Basel III capital regulations, which came into effect from 1 February 2017 introducing minimum capital requirements at three levels, namely Common Equity Tier 1 (‘CET1’), Additional Tier 1 (‘AT1’) and Total Capital. Additional capital buffers (Capital Conservation Buffer (CCB) and Countercyclical Capital Buffer (CCyB) - maximum up to 2.5% for each buffer) introduced are over and above the minimum CET1 requirement of 7%.
2019 Developments
Acquisition of DenizBank A.S
On 2 April 2019, the Group entered into a revised sale purchase agreement (Restated SPA) with Sberbank of Russia to acquire its 99.85% stake in DenizBank. In accordance with the Restated SPA, the consideration for 99.85% of shares in DenizBank was agreed at Turkish Lira (TRY) 15.48 billion. The transaction was completed on 31 July 2019 and accordingly the Group assumed control and consolidated the net assets of DenizBank as of that date.
Subsequent to 31 July 2019, as per the requirements of Turkish Capital Markets Board for a mandatory tender offer and after exercising squeeze out rights, the Group acquired the remaining 0.15% stake in DenizBank for a consideration of AED 65 million and as a result now holds 100% of equity in DenizBank. (Refer Note No. 12 of the annual financial statements)
Disposal of stake in Jointly controlled entity
On 15th April 2019, Network International Holdings Plc (a listing vehicle created as a holding entity of Network International LLC), was admitted to the premium-listing segment of the Official List maintained by Financial Conduct Authority and to the London Stock Exchange Plc.
The Group disposed its holdings in Network International Holdings Plc in two tranches. In total 39.1% shareholding was disposed, for a net consideration of AED 4,222 million compared to a book value of AED 1,076 million and as a result recorded a gain on disposal of AED 3,146 million. As of that date, the Group retained 11.9% interest in Network International Holdings Plc and no longer held significant influence and discontinued equity accounting. The retained interest was classified as investment at Fair Value through OCI. The fair value gain on measurement of the retained interest was AED 1,243 million and recognised in the income statement.
Subsequent to the above transactions, 6.2% shareholding was disposed for a net consideration of AED 749 million compared to a book value of AED 814 million. As a result, realised loss of AED 65 million was transferred to retained earnings on the investment held at Fair Value through OCI. The Group now retains 5.7% interest in Network International Holdings. (Refer Note No. 13 of annual financial statements)
OVERVIEW
In November 2009, The Central Bank of the United Arab Emirates (“CBUAE”) issued guidelines for implementation of Basel II Capital Accord in the banks in UAE. As per the circular, the Standardised Approach for Credit Risk was to apply immediately with an expectation that internationally active UAE banks and larger institutions will migrate to the Foundation Internal Rating Based (FIRB) in due course. The CBUAE Basel II framework is intended to strengthen the market discipline and risk management while enhancing the safety and soundness of the banking industry in UAE.
In February 2017, the new Basel III capital regulations issued by CBUAE came into effect for all Banks in the UAE.
The guidelines for Pillar 1 – Calculation of Credit Risk pertain to the Standardised Approach of Basel II only. One of the major changes brought in with the new guidelines is the ability to apply, on an asset class basis, risk weightings determined from ratings provided by External Credit Assessment Institutions (“ECAI”) approved by CBUAE.
CBUAE requires the Pillar 2 – Supervisory Review Process to focus on each bank’s Internal Capital Adequacy Assessment Process (ICAAP) in addition to Pillar 1 Capital calculations. The ICAAP should include a risk based forward looking view of, but not limited to, Credit, Market and Operational risk Capital.
The purpose of Pillar 3 – Market Discipline is to complement the minimum capital requirements (Pillar 1) and the supervisory review process (Pillar 2). The CBUAE supports the enhanced market discipline by developing a set of disclosure requirements which will allow market participants to assess key pieces of information on the scope of application, capital, risk exposure, risk assessment process and hence the capital adequacy of the institution. The Pillar 3 disclosures, based on a common framework, are an effective means of informing the market about the risks faced by a bank, and provide a consistent and understandable disclosure framework that enhances transparency and comparability.
In compliance with the CBUAE guidelines and Basel II accord, these disclosures include information on the Group’s risk management objectives and policies, risk assessment processes and computation, capital management and capital adequacy.
Quantitative information on risk assessment (per standardised approach) includes:
• Risk weighted assets of the Group - credit risk, market risk and operational risk
• Credit risk profile of gross credit exposure by counterparty classifications, rated/unrated
• Profile of gross credit exposure by economic activity, geographical region and maturity
• Profile of credit risk mitigation by economic activity, geographical region and maturity
• Profile of impaired loans by economic activity and geographical region
Information on capital adequacy includes:
• Capital adequacy computation
• Capital profile – CET 1, Tier I and Tier II
3 4EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
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n-OVERVIEW (continued)
Future Developments
In 2017, the CBUAE issued ‘Regulations regarding Capital adequacy’, supplementing the introduction of these regulations, in June 2019, CBUAE issued ‘standard regarding capital adequacy’. These standards support the implementation of the regulations. The CBUAE has also developed ‘Guidance regarding capital adequacy’ to assist banks in the application of the regulations.
Based on these standards, revised pillar 1 capital adequacy standards and revised pillar 3 disclosures requirements will be effective from June 2020.
Verification
The Pillar III Disclosures for the year 2019 have been reviewed by the Group’s statutory auditors.
Implementation of Basel II guidelines
The Group is compliant with Standardised Approach for Credit, Market and Operational Risk (Pillar I) with effect from 31st October 2007.
The Bank also assigns capital on other than Pillar I risk categories, for ‘Interest Rate risk on Banking Book’ and for ‘Business Risk’, within the Pillar II framework.
Group Structure
Emirates NBD Bank PJSC (the “Bank”) was incorporated in the United Arab Emirates on 16 July 2007 consequent to the merger between Emirates Bank International PJSC (“EBI”) and National Bank of Dubai PJSC (“NBD”), under the Commercial Companies Law (Federal Law Number 8 of 1984 as amended) as a Public Joint Stock Company. The Federal Law No. 2 of 2015, concerning Commercial Companies has come into effect from 1 July 2015, replacing the Federal Law No. 8 of 1984.
The consolidated financial statements for the year ended 31 December 2019 comprise the financial statements of the Bank and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associates and joint ventures.
The Bank is listed on the Dubai Financial Market (TICKER: “EMIRATESNBD”).
The Group’s principal business activities are corporate banking, consumer banking, treasury and Islamic banking. The Bank’s website is www.emiratesnbd.com.
5 6EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL III
The CBUAE issued Basel III capital regulations, which came into effect from 1 February 2017 introducing minimum capital requirements at three levels, namely Common Equity Tier 1 (‘CET1’), Additional Tier 1 (‘AT1’) and Total Capital.
Additional capital buffers (Capital Conservation Buffer (CCB) and Countercyclical Capital Buffer (CCyB) - maximum up to 2.5% for each buffer) introduced over and above the minimum CET1 requirement of 7%.
For 2019, CCB is required to be kept at 2.5% of the Capital base. CCyB is not in effect and is not required to be kept for 2019.
Over and above additional capital buffers, the Group as a Domestic Systematically Important Bank (D-SIB) is required to keep an additional D-SIB buffer of 1.5% of the Capital base for 2019.
Regulatory Capital
The Bank’s capital base is divided into three main categories, namely CET1, AT1 and Tier 2 (‘T2’), depending on their characteristics.
• CET1 capital is the highest quality form of capital, comprising share capital, share premium, legal, statutory and other reserves, fair value reserve, retained earnings, non-controlling interest after deductions for goodwill and intangibles and other regulatory adjustments relating to items that are included in equity but are treated differently for capital adequacy purposes under ‘CBUAE’ guidelines.
• AT1 capital comprises eligible non-common equity capital instruments.
• T2 capital comprises qualifying subordinated debt, and undisclosed reserve.
The capital overview as per Basel III framework is given below:
Available capital 2019AED 000
2018AED 000
Common equity Tier 1 capital 65,452,344 46,678,016
Tier 1 capital 74,559,700 55,607,384
Total eligible capital 79,375,840 58,802,536
Risk-weighted assets
Credit risk 385,291,210 243,860,147
Market risk 10,190,488 9,035,854
Operational risk 33,027,671 28,043,576
Total risk-weighted assets 428,509,369 280,939,577
The capital adequacy ratios as per Basel III capital regulation are given below:
Capital Ratio 2019 2018a. Total capital ratio for consolidated Group 18.52% 20.93%
b. Tier 1 ratio only for consolidated Group 17.40% 19.79%
c. CET1 ratio only for consolidated Group 15.27% 16.61%
Ass
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Gro
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t (C
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Insu
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Nat
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l Gen
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Insu
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PSC
36.7
Gen
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and
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Insu
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ubai
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-
7 8EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL III (continued)
TIER I CAPITAL NOTES
The Group has issued a number of regulatory Tier 1 capital notes with details mentioned in the table below. The notes are perpetual, subordinated and unsecured. The Group can elect not to pay a coupon at its own discretion. Note holders will not have a right to claim the coupon and such event will not be considered an event of default. The notes carry no maturity date and have been classified as equity.
Issuance Month/Year Issued Amount Coupon Rate
March 2019 USD 1 billion (AED 3.67 billion) Fixed interest rate with a reset after six years
September 2014 USD 500 million (AED 1.83 billion) Fixed interest rate with a reset after six years
June 2009 AED 4 billion Fixed interest rate for the first five years and on a floating rate basis thereafter.
The Group has exercised its option to call back the following notes in May 2019 and as a result have been repaid in full.
Issuance Month/Year Issued Amount Coupon Rate
May 2013 USD 1 billion (AED 3.67 billion) Fixed interest rate with a reset after six years
CAPITAL ADEQUACY (STANDARDISED APPROACH)
2019Capital Charge
2018Capital Charge
Total Capital Requirements AED 000 AED 000
Credit Risk 55,867,225 32,921,120
Market Risk 1,070,001 948,765
Operational Risk 3,467,905 2,944,575
Total Capital Requirements 60,405,131 36,814,460
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL III (continued) The consolidated capital structure as per Basel III is given below:
2019AED 000
2018AED 000
Common Equity Tier 1 (CET1) Capital
Share Capital 6,316,598 5,557,775
Share premium account 17,954,164 12,270,124
Eligible Reserves 4,456,124 4,384,056
Retained Earnings/(-) Loss 43,375,416 32,412,538
Dividend Expected/Proposed - (2,223,110)
Eligible amount of minority interest 3,638 9,066
CET1 capital before the regulatory adjustments and threshold deduction 72,105,940 52,410,449
Less: Regulatory deductions (6,653,596) (5,732,433)
Total CET1 capital after the regulatory adjustments and threshold deduction 65,452,344 46,678,016
Total CET1 capital after transitional arrangement for deductions (CET1) (A) 65,452,344 46,678,016
Additional Tier 1 (AT1) Capital
Eligible AT1 capital 9,107,356 8,929,368
Other AT1 Capital e.g. (Share premium, minority interest) - -
Total AT1 capital 9,107,356 8,929,368
Total AT1 capital after transitional arrangements (AT1) (B) 9,107,356 8,929,368
Tier 2 (T2) Capital
Tier 2 Instruments e.g. subordinated loan - 146,900
Other Tier 2 capital (including General Provisions, etc.) 4,816,140 3,048,252
Total T2 Capital 4,816,140 3,195,152
Total T2 capital after transitional arrangements (T2) (C) 4,816,140 3,195,152
Total Regulatory Capital (A+B+C) 79,375,840 58,802,536
9 10EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
Cred
it R
isk
The
tota
l cap
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cha
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t 31
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Ass
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308,
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anks
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anks
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Oth
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sset
s
23,4
36,3
98
16
,424
,596
16
,347
,646
10,6
66,8
70
Clai
ms
on s
ecur
itise
d as
sets
- -
--
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
- -
--
Tota
l77
4,22
4,51
038
5,29
1,21
056
6,57
1,36
624
3,86
0,14
7CAPITAL ADEQUACY (STANDARDISED APPROACH) (continued)
Standardised Approach – Credit risk & credit risk mitigation
Under Standardised Approach, all credit exposures are assessed according to the counterparty classifications and against the External Credit Assessment Institutions (“ECAI”) ratings as advised under national discretion (November 2009):
• Claims on sovereign and central banks in the GCC are risk weighted at 0% (where applicable).• Domestic currency claims on a non-commercial GCC Public Sector Enterprise (PSE) are treated as claims on
their sovereigns if their central bank or monetary authority treats them as such. Foreign currency claims on such a PSE are risk weighted one grade less favorable than its sovereign i.e. 20% risk weight. Claims on other foreign PSEs are risk weighted one grade less favorable than its sovereign.
• Claims on commercial companies owned by a GCC sovereign or PSEs that operate as commercial organisations are treated as claims on a corporate and risk weighted in accordance with ratings from acceptable ECAIs.
• ECAI ratings are also used to determine the capital requirements against exposures to banks and financial institutions. The group uses option 2 (one of alternative risk weight and ECAI ratings matrices as prescribed in the Basel II accord) for determining the capital requirements in line with the supervisory discretion adopted by the CBUAE.
• Claims on corporate entities are risk weighted at prescribed risk weights applicable per the latest ECAI rating of the counterparty. Claims on unrated corporate entities are risk weighted at 100%.
• Consumer banking exposure is classified into ‘Qualified Residential Mortgage’, ‘Qualified Regulatory Retail Portfolio’ and ‘Others’; per the CBUAE Basel II guidelines and are risk weighted at 35%, 75% and 100% respectively.
• All other assets are classified between ‘assets under higher risk categories’ and ‘others’; and risk weighted at prescribed risk weights.
For standardised capital adequacy calculations, the following rules are applied consistently to determine the appropriate ECAI ratings:
• Where more ECAI ratings of two acceptable rating agencies are available, the lower (worse) of the two is considered.
• Where the ECAI ratings are split evenly between all four rating agencies, the more conservative ratings are considered.
• Acceptable ECAI agencies are Moody’s, S&P, Fitch and Capital Intelligence.
11 12EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
Market Risk
Market risks subject to capital charge are as follows:
• Interest Rate Risk• Foreign Exchange Risk• Equity Exposure Risk• Commodity Risk• Options Risk
Capital charge on interest rate risk and equity exposure risk is restricted to Bank’s ‘trading book’, while capital charge on Foreign exchange risk applies on the bank’s entire positions.
The total Capital requirement for Market Risk as at 31 December 2019 is AED 1,070 million (2018: AED 949 million) as detailed below:
CAPITAL REQUIREMENT FOR MARKET RISK AS PER STANDARDISED APPROACH
2019AED 000
2018AED 000
Interest rate risk 875,773 847,009
Equity position risk - -
Options risk 64,503 74,935
Foreign exchange risk 129,725 26,821
Total capital requirement 1,070,001 948,765
Operational Risk
Basel II framework outlines three methods for calculating the risk charge for operational risk – Basic Indicator, Standardised Approach and Advanced Measurement Approach. The Group presently follows the Standardised Approach.
The total capital requirement for Operational Risk as at 31 December 2019 is AED 3,468 million (2018: AED 2,945 million). This charge is computed by categorising the Group’s activities into 8 business lines (as defined by Basel II guidelines) and multiplying the line’s three year average gross income by a pre-defined beta factor.
RISK
MA
NA
GEM
ENT
OBJ
ECTI
VES
AN
D P
OLI
CIES
CRED
IT R
ISK
Plea
se re
fer N
ote
no. 5
0 in
the
annu
al fi
nanc
ial s
tate
men
ts fo
r det
aile
d ris
k m
anag
emen
t obj
ectiv
es a
nd p
olic
ies
on C
redi
t ris
k.
GRO
SS C
RED
IT E
XPO
SURE
– C
URR
ENCY
CLA
SSIF
ICA
TIO
N
31 D
ECEM
BER
2019
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mitm
ents
AED
000
OTC
de
riva
tive
sAE
D 0
00
Oth
eroff
-bal
ance
sh
eet
expo
sure
sAE
D 0
00
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00
Fore
ign
Curr
ency
152
,390
,079
49,5
42,5
4282
,005
,464
283,
938,
085
4,34
2,98
09,
462,
183
40,0
37,9
6153
,843
,124
337,
781,
209
AED
322,
390,
635
1,34
692
,808
,307
415
,200
,288
4,56
8,02
51,
235,
175
15,4
39,8
1321
,243
,013
436,
443,
301
Tota
l47
4,78
0,71
449
,543
,888
174,
813,
771
699,
138,
373
8,91
1,00
510
,697
,358
55,4
77,7
7475
,086
,137
774,
224,
510
31 D
ECEM
BER
2018
Loan
s Is
lam
ic &
Fina
ncin
gA
ED 0
00
Deb
tse
curi
ties
AED
000
Oth
eras
sets
AED
000
Tota
lfu
nded
AED
000
Com
mitm
ents
AED
000
OTC
deri
vati
ves
AED
000
Oth
er o
ff-b
alan
cesh
eet
expo
sure
sA
ED 0
00
Tot
alno
n-fu
nded
AED
000
Tota
lA
ED 0
00
Fore
ign
Curr
ency
57,1
08,7
7316
,226
,444
57,6
44,2
1713
0,97
9,43
41,
012,
157
8,79
3,02
320
,963
,490
30,7
68,6
7016
1,74
8,10
4
AED
304,
619,
063
118
80,8
74,1
2538
5,49
3,30
63,
147,
013
766,
904
15,4
16,0
3919
,329
,956
404,
823,
262
Tota
l36
1,72
7,83
616
,226
,562
138,
518,
342
516,
472,
740
4,15
9,17
09,
559,
927
36,3
79,5
2950
,098
,626
566,
571,
366
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue fr
om B
anks
, Tra
ding
sec
uriti
es, I
nves
tmen
t sec
uriti
es [n
et o
f Deb
t Sec
uriti
es],
Inve
stm
ent p
rope
rtie
s, P
rope
rty
& E
quip
men
t & O
ther
Ass
ets.
13 14EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
The
grou
p’s
cred
it e
xpos
ure
by G
eogr
aphy
and
Eco
nom
ic a
ctiv
ity,
bot
h fu
nded
and
non
-fun
ded
is d
etai
led
belo
w (C
onti
nued
):
GRO
SS C
RED
IT E
XPO
SURE
BY
GEO
GRA
PHY
(con
tinu
ed)
31 D
ECEM
BER
2018
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mit
men
tsAE
D 0
00
OTC
de
riva
tive
sAE
D 0
00
Oth
eroff
-bal
ance
sh
eet
expo
sure
sAE
D 0
00
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00
Uni
ted
Arab
Em
irate
s33
7,81
9,18
8 3,
300,
858
97,1
44,1
7143
8,26
4,21
73,
450,
797
3,21
3,13
031
,105
,299
37,7
69,2
2647
6,03
3,44
3
GCC
exc
ludi
ng U
AE*
10,1
44,0
074,
712,
878
12,3
65,9
6927
,222
,854
290,
178
994,
707
2,92
0,05
94,
204,
944
31,4
27,7
98Ar
ab L
eagu
e (e
xclu
ding
G
CC)
6,82
6,99
42,
982,
820
4,76
0,24
414
,570
,058
40,6
22
116,
658
894,
532
1,05
1,81
215
,621
,870
Asia
2,44
8,16
349
5,84
110
,943
,942
13,8
87,9
46-
552,
363
362,
365
914,
728
14,8
02,6
74
Afric
a8,
976
- 27
,510
36,4
86 -
331
204
535
37,0
21
Nor
th A
mer
ica
1,18
6,15
9 3
,238
,831
1,
948,
917
6,37
3,90
7 -
680
,174
1
,464
6
81,6
38
7,
055,
545
Sout
h Am
eric
a 1
1,00
3 -
- 1
1,00
3 -
- 2,
917
2,9
17
13,9
20
Carib
bean
--
--
--
--
-
Euro
pe3,
183,
712
1,46
9,64
011
,322
,590
15,9
75,9
4237
7,57
33,
967,
425
214,
356
4,55
9,35
420
,535
,296
Aust
ralia
- 25
,694
935
26,6
29 -
35,1
39 -
35,1
3961
,768
Oth
ers
99,6
34 -
4,06
410
3,69
8 -
- 87
8,33
387
8,33
398
2,03
1
Tota
l36
1,72
7,83
616
,226
,562
138,
518,
342
516,
472,
740
4,15
9,17
09,
559,
927
36,3
79,5
2950
,098
,626
566,
571,
366
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue f
rom
Ban
ks, T
radi
ng s
ecur
ities
, Inv
estm
ent
secu
ritie
s [n
et o
f D
ebt
Secu
ritie
s], I
nves
tmen
t pr
oper
ties,
Pr
oper
ty &
Equ
ipm
ent
& O
ther
Ass
ets.
*Thi
s in
clud
es S
audi
Ara
bia,
Bah
rain
, Kuw
ait,
Om
an a
nd Q
atar
.
The
grou
p’s
cred
it e
xpos
ure
by G
eogr
aphy
and
Eco
nom
ic a
ctiv
ity,
bot
h fu
nded
and
non
-fun
ded
is d
etai
led
belo
w:
GRO
SS C
RED
IT E
XPO
SURE
BY
GEO
GRA
PHY
31 D
ECEM
BER
2019
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mitm
ents
AED
000
OTC
de
riva
tive
sAE
D 0
00
Oth
eroff
-bal
ance
sh
eet
expo
sure
sAE
D 0
00
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00
Uni
ted
Arab
Em
irate
s36
2,99
4,29
9 6
,897
,187
9
9,12
2,01
0 46
9,01
3,49
6 5
,909
,574
3
,893
,082
3
7,37
3,01
5 4
7,17
5,67
1 51
6,18
9,16
7
GCC
exc
ludi
ng U
AE*
12,
706,
195
10,
609,
427
14,
720,
132
38,
035,
754
226
,719
9
58,3
54
949
,307
2
,134
,380
4
0,17
0,13
4 Ar
ab L
eagu
e (e
xclu
ding
G
CC)
7,7
53,5
61
4,2
03,0
77
9,0
57,4
04
21,
014,
042
102
,600
71,
581
1,13
8,31
4 1
,312
,495
2
2,32
6,53
7
Asia
70,
763,
176
13,
584,
103
28,
794,
283
113
,141
,562
1
,995
,963
7
95,6
65
13,
418,
567
16,
210,
195
129
,351
,757
Afric
a 3
2,00
6 -
899
,630
9
31,6
36
- 4
,175
3
,110
7
,285
9
38,9
21
Nor
th A
mer
ica
621
,867
8
,551
,578
2
,162
,356
1
1,33
5,80
1 6
1,99
3 4
3,55
2 2
,171
1
07,7
16
11,
443,
517
Sout
h Am
eric
a 4
,547
-
74
4,6
21
16
- 4
65
481
5
,102
Carib
bean
19,
097
- -
19,
097
- -
- -
19,
097
Euro
pe19
,657
,795
5
,487
,790
1
9,99
3,42
6 4
5,13
9,01
1 5
84,5
15
4,9
02,0
61
1,6
50,1
73
7,1
36,7
49
52,
275,
760
Aust
ralia
228
,171
2
5,69
9 6
4,45
6 3
18,3
26
- 2
5,41
0 1
0 2
5,42
0 3
43,7
46
Oth
ers
- 1
85,0
27
- 1
85,0
27
29,
625
3,4
78
942
,642
9
75,7
45
1,1
60,7
72
Tota
l 4
74,7
80,7
14
49,
543,
888
174
,813
,771
6
99,1
38,3
73
8,9
11,0
05 1
0,69
7,35
8 55
,477
,774
75,0
86,1
37 7
74,2
24,5
10
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue fr
om B
anks
, Tra
ding
sec
uriti
es, I
nves
tmen
t sec
uriti
es [n
et o
f Deb
t Sec
uriti
es],
Inve
stm
ent
prop
ertie
s, P
rope
rty
& E
quip
men
t & O
ther
Ass
ets.
*Thi
s in
clud
es S
audi
Ara
bia,
Bah
rain
, Kuw
ait,
Om
an a
nd Q
atar
.
15 16EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
The
grou
p’s
cred
it e
xpos
ure
by G
eogr
aphy
and
Eco
nom
ic a
ctiv
ity,
bot
h fu
nded
and
non
-fun
ded
is d
etai
led
belo
w (c
onti
nued
):
GRO
SS C
RED
IT E
XPO
SURE
BY
ECO
NO
MIC
ACT
IVIT
Y (c
onti
nued
)
31 D
ECEM
BER
2018
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mit
men
tsAE
D 0
00
OTC
de
riva
tive
sAE
D 0
00
Oth
er o
ff-
bala
nce
shee
t ex
posu
res
AED
000
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00Ag
ricul
ture
, Fis
hing
&
Rela
ted
Activ
ities
186,
822
- -
186
,822
3,0
30 -
22,
630
25,
660
212
,482
Crud
e oi
l, G
as, M
inin
g &
Q
uarr
ying
675,
791
- -
675
,791
14,
949
-
174,
144
18
9,09
3
864,
884
Man
ufac
turin
g8,
346,
629
- 4
,022
8,35
0,65
1 7
4,08
4 6
3,10
5
2,52
8,78
2
2,66
5,97
1
11,0
16,6
22
Elec
tric
ity &
Wat
er1,
333,
271
266
,644
303
,055
1,
902,
970
18,
931
36,
558
106
,528
162
,017
2,06
4,98
7
Cons
truc
tion
9,31
8,29
0 -
58,
775
9,
377,
065
751
,611
26,
013
11
,900
,923
12
,678
,547
22
,055
,612
Trad
e28
,223
,771
- -
28
,223
,771
81,
130
406
,204
2,85
4,15
6
3,34
1,49
0
31,5
65,2
61
Tran
spor
t, St
orag
e &
Com
mun
icat
ion
3,29
0,78
189
,254
112
,572
3,
492,
607
14,
119
39,
206
782
,047
835
,372
4,32
7,97
9
Fina
ncia
l Ins
titut
ions
and
In
vest
men
t Com
pani
es24
,498
,080
2,
262,
230
12
1,76
6,42
7
148,
526,
737
281
,327
8,4
31,5
43 7
,665
,258
16,
378,
128
16
4,90
4,86
5
Real
Est
ate
45,4
77,9
92 2
92,8
85 1
,127
,439
46
,898
,316
1,4
43,9
23 1
15,1
41 1
,728
,157
3,2
87,2
21
50,1
85,5
37
Serv
ices
9,64
0,23
5 6
56,9
9111
8,96
3 1
0,41
6,18
9 4
8,10
0 1
54,6
49 1
,881
,560
2,0
84,3
09
12,5
00,4
98
Sove
reig
n15
1,37
5,10
0 1
1,32
9,60
4 1
,957
,932
16
4,66
2,63
6 -
144
,613
6,2
26 1
50,8
39 1
64,8
13,4
75
Pers
onal
63
,553
,289
- -
63
,553
,289
18,
900
51,
489
836
,877
907
,266
64
,460
,555
All O
ther
s8,
712,
957
1,
328,
954
13
,069
,157
23
,111
,068
1,4
09,0
66 9
1,40
6
5,89
2,24
17,
392,
713
30
,503
,781
Add:
Gro
ssin
g up
of i
nter
est
in s
uspe
nse
7,09
4,82
8 -
- 7
,094
,828
- -
- -
7,0
94,8
28
Tota
l36
1,72
7,83
616
,226
,562
138,
518,
342
516,
472,
740
4,15
9,17
09,
559,
927
36,3
79,5
2950
,098
,626
566,
571,
366
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue f
rom
Ban
ks, T
radi
ng s
ecur
ities
, Inv
estm
ent
secu
ritie
s [n
et o
f D
ebt
Secu
ritie
s], I
nves
tmen
t pr
oper
ties,
Pr
oper
ty &
Equ
ipm
ent
& O
ther
Ass
ets.
The
grou
p’s
cred
it e
xpos
ure
by G
eogr
aphy
and
Eco
nom
ic a
ctiv
ity,
bot
h fu
nded
and
non
-fun
ded
is d
etai
led
belo
w (C
onti
nued
):
GRO
SS C
RED
IT E
XPO
SURE
BY
ECO
NO
MIC
ACT
IVIT
Y
31 D
ECEM
BER
2019
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mit
men
tsAE
D 0
00
OTC
de
riva
tive
sAE
D 0
00
Oth
eroff
-bal
ance
sh
eet
expo
sure
sAE
D 0
00
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00
Agric
ultu
re, F
ishi
ng &
Rel
ated
Ac
tiviti
es 8
,127
,555
-
259
,915
8
,387
,470
2
8,10
8 6
6
45,9
94
674
,108
9
,061
,578
Crud
e oi
l, G
as, M
inin
g &
Q
uarr
ying
3,1
71,3
36
103
,884
-
3,2
75,2
20
202
,574
3
9,12
4 1
,517
,746
1
,759
,444
5
,034
,664
Man
ufac
turin
g 2
0,08
5,29
3 4
5,38
0 5
80,9
83
20,
711,
656
338
,345
1
53,4
94
7,1
96,4
27
7,6
88,2
66
28,
399,
922
Elec
tric
ity &
Wat
er 2
,093
,821
2
03,8
82
- 2
,297
,703
1
03,8
31
397
,727
3
33,6
21
835
,179
3
,132
,882
Cons
truc
tion
17,
178,
387
4,8
72
156
,630
1
7,33
9,88
9 1
,262
,802
1
14,8
86
14,
202,
041
15,
579,
729
32,
919,
618
Trad
e 3
2,07
8,05
9 3
9,95
6 2
1 3
2,11
8,03
6 8
41,7
11
1,1
18,4
91
10,
998,
969
12,
959,
171
45,
077,
207
Tran
spor
t, St
orag
e &
Com
mun
icat
ion
8,3
87,5
21
262
,276
5
6,96
5 8
,706
,762
1
17,5
59
102
,121
1
,040
,234
1
,259
,914
9
,966
,676
Fina
ncia
l Ins
titut
ions
and
In
vest
men
t Com
pani
es 3
3,70
6,94
6 3,
576,
890
156,
309,
959
193,
593,
795
1,1
92,8
21
8,1
27,7
34
6,9
18,8
62
16,
239,
417
209,
833,
212
Real
Est
ate
51,
918,
225
505
,133
4
99,3
72
52,
922,
730
1,9
56,8
42
253
,358
3
,024
,370
5
,234
,570
5
8,15
7,30
0
Serv
ices
33,
672,
954
610
,725
3
87,7
80
34,
671,
459
906
,090
2
44,5
54
3,4
12,6
49
4,5
63,2
93
39,
234,
752
Sove
reig
n 1
63,1
93,3
53
42,5
00,4
83 1
,884
,340
20
7,57
8,17
6 1
28,9
70
2,3
34
232
,696
3
64,0
00
207,
942,
176
Pers
onal
8
3,34
9,07
5 -
6
83,
349,
081
1,0
16,5
73
126
,055
3
,684
,894
4
,827
,522
8
8,17
6,60
3
All O
ther
s 9
,693
,897
1
,690
,407
1
4,67
7,80
0 2
6,06
2,10
4 8
14,7
79
17,
474
2,2
69,2
71
3,1
01,5
24
29,
163,
628
Add:
Gro
ssin
g up
of i
nter
est
in s
uspe
nse
8,1
24,2
92
- -
8,1
24,2
92
- -
- -
8,1
24,2
92
Tota
l 4
74,7
80,7
14
49,
543,
888
174
,813
,771
6
99,1
38,3
73
8,91
1,00
5 1
0,69
7,35
8 5
5,47
7,77
4 7
5,08
6,13
7 7
74,2
24,5
10
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue f
rom
Ban
ks, T
radi
ng s
ecur
ities
, Inv
estm
ent
secu
ritie
s [n
et o
f D
ebt
Secu
ritie
s], I
nves
tmen
t pr
oper
ties,
Pr
oper
ty &
Equ
ipm
ent
& O
ther
Ass
ets.
17 18EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
GRO
SS C
RED
IT E
XPO
SURE
BY
MA
TURI
TY (c
onti
nued
)
The
follo
win
g ta
ble
lists
the
Gro
up’s
expo
sure
s by
Res
idua
l Mat
urity
(con
tinue
d):
31 D
ECEM
BER
2018
Loan
s &
Is
lam
ic
Fina
ncin
gAE
D 0
00
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mit
men
tsAE
D 0
00
OTC
de
riva
tive
sAE
D 0
00
Oth
eroff
-bal
ance
sh
eet
expo
sure
sAE
D 0
00
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00Le
ss th
an 3
mon
ths
185,
105,
421
1,98
7,41
3 99
,435
,093
28
6,52
7,92
7 1,
943,
113
2,05
4,36
4 19
,821
,034
23,8
18,5
1131
0,34
6,43
8
3 m
onth
s to
1 y
ear
25
,947
,506
1,66
3,64
2 2
9,41
2,50
1
57,0
23,6
49
2,
216,
057
1,
807,
978
9,
813,
365
13
,837
,400
70,8
61,0
49
1 ye
ar to
5 y
ears
64
,698
,039
7,82
5,24
1
3,15
7,43
9
75,6
80,7
19
-
4,
462,
561
6,
254,
131
10
,716
,692
86,3
97,4
11
Ove
r 5 y
ears
52,1
79,5
344,
750,
266
6,51
3,30
963
,443
,109
-1,
235,
024
490,
999
1,72
6,02
365
,169
,132
Add:
Gro
ssin
g up
of
inte
rest
in s
uspe
nse
&
prov
ision
s 3
3,79
7,33
6 -
- 3
3,79
7,33
6 -
- -
- 3
3,79
7,33
6
Tota
l36
1,72
7,83
616
,226
,562
138,
518,
342
516,
472,
740
4,15
9,17
09,
559,
927
36,3
79,5
2950
,098
,626
566,
571,
366
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue f
rom
Ban
ks, T
radi
ng s
ecur
ities
, Inv
estm
ent
secu
ritie
s [n
et o
f D
ebt
Secu
ritie
s], I
nves
tmen
t pr
oper
ties,
In
vest
men
t in
ass
ocia
te a
nd jo
int
vent
ures
, Pro
pert
y &
Equ
ipm
ent
& O
ther
Ass
ets.
GRO
SS C
RED
IT E
XPO
SURE
BY
MA
TURI
TY
The
follo
win
g ta
ble
lists
the
Gro
up’s
expo
sure
s by
Res
idua
l Mat
urity
:
31 D
ECEM
BER
2019
Loan
s &
Is
lam
ic
Fina
ncin
gAE
D 0
00
Deb
t se
curi
ties
AED
000
Oth
er
asse
tsAE
D 0
00
Tota
l fu
nded
AED
000
Com
mit
men
tsAE
D 0
00
OTC
de
riva
tive
sAE
D 0
00
Oth
eroff
-bal
ance
sh
eet
expo
sure
sAE
D 0
00
Tota
lno
n-fu
nded
AED
000
Tota
lAE
D 0
00
Less
than
3 m
onth
s 2
19,9
87,0
61
13,
653,
989
123
,556
,739
35
7,19
7,78
9 9
06,3
23
1,59
5,33
3 6
,034
,364
8
,536
,020
36
5,73
3,80
9
3 m
onth
s to
1 y
ear
50,
751,
926
3,1
97,9
11
29,
983,
310
83,
933,
147
7,5
84,6
77
2,48
8,16
2 2
1,73
0,27
3 3
1,80
3,11
2
115,
736,
259
1 ye
ar to
5 y
ears
125
,822
,083
1
9,11
1,65
6 6
,665
,751
151,
599,
490
168
,882
4,
500,
477
3,9
85,9
48
8,6
55,3
07
16
0,25
4,79
7
Ove
r 5 y
ears
40,
868,
957
13,
580,
332
14,
607,
971
69,
057,
260
251
,123
2,
113,
386
23,
727,
189
26,
091,
698
95,
148,
958
Add:
Gro
ssin
g up
of
inte
rest
in s
uspe
nse
&
prov
ision
s 3
7,35
0,68
7 -
- 3
7,35
0,68
7 -
- -
- 37
,350
,687
Tota
l 4
74,7
80,7
14
49,
543,
888
174,
813,
771
699,
138,
373
8,9
11,0
05
10,
697,
358
55,
477,
774
75,
086,
137
774,
224,
510
Oth
er A
sset
s in
clud
e Ca
sh &
Dep
osits
with
Cen
tral
Ban
k, D
ue f
rom
Ban
ks, T
radi
ng s
ecur
ities
, Inv
estm
ent
secu
ritie
s [n
et o
f D
ebt
Secu
ritie
s], I
nves
tmen
t pr
oper
ties,
In
vest
men
t in
ass
ocia
te a
nd jo
int
vent
ures
, Pro
pert
y &
Equ
ipm
ent
& O
ther
Ass
ets.
19 20EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
IMPA
IRED
LO
AN
S BY
ECO
NO
MIC
ACT
IVIT
Y (c
onti
nued
)
31 D
ECEM
BER
2018
Ove
rdue
(Gro
ss o
f Int
eres
t in
Susp
ense
/ Pr
ovis
ions
)Pr
ovis
ions
Adju
stm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Asse
tsAE
D 0
00
Less
than
90
day
sAE
D 0
00
90 d
ays
and
abov
eAE
D 0
00To
tal
AED
000
Spec
ific*
AED
000
Gene
ral*
*AE
D 00
0W
rite
-off
sAE
D 0
00W
rite
-bac
ksAE
D 0
00Ag
ricul
ture
, fish
ing
&
rela
ted
activ
ities
-4,
177
4,17
73,
706
--
2849
6(2
5)Cr
ude
oil,
Gas
, Min
ing
&
Qua
rryi
ng-
41,6
1541
,615
37,8
47-
17,1
60-
4,19
5(4
27)
Man
ufac
turin
g-
1,38
2,09
71,
382,
097
871,
900
-79
,830
37,1
5142
3,95
486
,243
Elec
tric
ity a
nd W
ater
-24
624
678
1715
1
Cons
truc
tion
-3,
447,
004
3,44
7,00
43,
066,
338
-94
,508
10,0
3392
7,27
7(5
46,6
11)
Trad
e-
2,51
0,32
42,
510,
324
2,54
7,51
5-
960,
908
66,7
3968
2,35
4(7
19,5
45)
Tran
spor
t, St
orag
e &
Co
mm
unic
atio
n-
843,
435
843,
435
468,
343
-9,
372
391,
709
181,
425
193,
667
Fina
ncia
l Ins
titut
ions
-9,
028,
553
9,02
8,55
36,
673,
877
-30
,393
63,8
331,
773,
747
580,
929
Real
Est
ate
-4,
411,
470
4,41
1,47
02,
832,
474
-10
5,40
923
6,03
51,
802,
463
(223
,467
)
Serv
ices
-2,
524,
217
2,52
4,21
795
8,15
9-
336,
387
418,
203
104,
723
1,46
1,33
5
Sove
reig
n-
--
--
--
--
Pers
onal
-3,
228,
752
3,22
8,75
21,
494,
057
-1,
216,
571
267,
856
1,15
6,74
457
7,95
1
All O
ther
s-
666,
802
666,
802
305,
389
-29
8,30
613
9,62
337
,433
323,
980
Tota
l-
28,0
88,6
9228
,088
,692
19,2
59,6
837,
442,
825
3,14
8,84
41,
631,
210
7,09
4,82
81,
734,
181
*Spe
cific
pro
visi
ons
repr
esen
t Sta
ge 3
Exp
ecte
d Cr
edit
Loss
(‘EC
L’).
**G
ener
al p
rovi
sion
s re
pres
ent S
tage
1 a
nd S
tage
2 E
xpec
ted
Cred
it Lo
ss (‘
ECL’)
.
The
deta
ils o
f im
pair
ed lo
ans
by G
eogr
aphy
and
Eco
nom
ic A
ctiv
ity
are
as b
elow
:
IMPA
IRED
LO
AN
S BY
ECO
NO
MIC
ACT
IVIT
Y
31 D
ECEM
BER
2019
Ove
rdue
(Gro
ss o
f Int
eres
t in
Susp
ense
/ Pr
ovis
ions
)Pr
ovis
ions
Adju
stm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Asse
tsAE
D 0
00
Less
than
90
day
sAE
D 0
00
90 d
ays
and
abov
eAE
D 0
00To
tal
AED
000
Spec
ific*
AED
000
Gene
ral*
*AE
D 00
0W
rite
-off
sAE
D 0
00W
rite
-bac
ksAE
D 0
00Ag
ricul
ture
, Fis
hing
&
Rela
ted
Activ
ities
- 8
54,9
73
854
,973
1
97,6
40
- 2
,379
5
1,36
2 5
6
57,3
28
Crud
e oi
l, G
as, M
inin
g &
Q
uarr
ying
- 1
23,7
48
123
,748
2
4,60
4 -
37,
671
8,4
74
1,0
70
98,0
74
Man
ufac
turin
g-
1,1
44,6
31
1,1
44,6
31
561
,255
-
90,
202
187
,273
1
17,4
89
465,
887
Elec
tric
ity a
nd W
ater
- 3
5,20
7 3
5,20
7 1
02,0
64
- -
67,
399
- (6
6,85
7)
Cons
truc
tion
- 4
,369
,449
4
,369
,449
3
,184
,267
-
10,
112
163
,253
1
,052
,929
13
2,25
3
Trad
e-
2,9
85,6
37
2,9
85,6
37
1,6
72,6
86
- 1
94,6
08
138
,363
4
20,6
96
892,
255
Tran
spor
t, St
orag
e &
Co
mm
unic
atio
n-
556
,436
5
56,4
36
270
,199
-
11,
578
18,
484
53,
146
233,
091
Fina
ncia
l Ins
titut
ions
- 8
,151
,034
8
,151
,034
6
,280
,434
-
301
,835
-
1,9
99,8
23
(129
,223
)
Real
Est
ate
- 6
,504
,039
6
,504
,039
3
,833
,911
-
109
,400
4
43,5
16
1,9
15,2
62
754,
866
Serv
ices
-
4,26
4,24
7 4,
264,
247
2,71
8,54
0 -
303,
984
128,
683
1,05
6,47
048
9,23
7
Sove
reig
n-
- -
--
--
--
Pers
onal
- 4
,273
,002
4
,273
,002
1
,849
,593
-
926
,008
2
75,0
10
1,4
31,2
17
992,
192
All O
ther
s-
886
,344
8
86,3
44
224
,059
-
18,
176
39,5
45
76,
185
586,
100
Tota
l -
34,
148,
747
34,
148,
747
20,
919,
252
8,3
07,1
43 2
,005
,953
1
,521
,362
8
,124
,292
5
,105
,203
*Spe
cific
pro
visi
ons
repr
esen
t Sta
ge 3
Exp
ecte
d Cr
edit
Loss
(‘EC
L’).
**G
ener
al p
rovi
sion
s re
pres
ent S
tage
1 a
nd S
tage
2 E
xpec
ted
Cred
it Lo
ss (‘
ECL’)
.
21 22EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
IMPA
IRED
LO
AN
S BY
GEO
GRA
PHY
(con
tinu
ed)
31 D
ECEM
BER
2018
Ove
rdue
(Gro
ss o
f Int
eres
t in
Susp
ense
/ Pr
ovis
ions
)Pr
ovis
ions
Adju
stm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Asse
tsAE
D 0
00
Less
than
90
day
sAE
D 0
00
90 d
ays
and
abov
eAE
D 0
00To
tal
AED
000
Spec
ific*
AED
000
Gene
ral*
*AE
D 00
0W
rite
-off
sAE
D 0
00W
rite
-bac
ksAE
D 0
00U
nite
d Ar
ab E
mira
tes
- 2
5,44
9,52
0 2
5,44
9,52
0 1
8,13
3,01
9 -
2,9
37,2
52
1,6
23,0
74
6,6
10,0
09
706
,492
GCC
exc
ludi
ng U
AE *
** -
2,0
77,1
41
2,0
77,1
41
911
,137
-
210
,996
8
,108
4
60,3
47
705
,657
Ar
ab L
eagu
e (e
xclu
ding
G
CC)
- 25
3,97
3 2
53,9
73
182
,179
-
- -
14,
394
57,
400
Asia
-
11,8
4911
,849
5,51
47,
742
(1,4
07)
Afric
a -
- -
- -
- -
- -
Nor
th A
mer
ica
- -
- -
- -
- -
-
Sout
h Am
eric
a -
- -
- -
- -
- -
Carib
bean
-
- -
- -
- -
- -
Euro
pe -
293,
346
293,
346
24,1
93 -
596
282,
336
266,
817
Aust
ralia
- -
- -
- -
- -
-
Oth
ers
- 2
,863
2,
863
3,64
1 -
- -
- (7
78)
Tota
l
-
28,0
88,6
9228
,088
,692
19,2
59,6
837,
442,
825
3,14
8,84
41,
631,
210
7,09
4,82
81,
734,
181
*Spe
cific
pro
visi
ons
repr
esen
t Sta
ge 3
Exp
ecte
d Cr
edit
Loss
(‘EC
L’).
**G
ener
al p
rovi
sion
s re
pres
ent S
tage
1 a
nd S
tage
2 E
xpec
ted
Cred
it Lo
ss (‘
ECL’)
.
***T
his
incl
udes
Sau
di A
rabi
a, B
ahra
in, K
uwai
t, O
man
and
Qat
ar.
IMPA
IRED
LO
AN
S BY
GEO
GRA
PHY
31 D
ECEM
BER
2019
Ove
rdue
(Gro
ss o
f Int
eres
t in
Susp
ense
/ Pr
ovis
ions
)Pr
ovis
ions
Adju
stm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Asse
tsAE
D 0
00
Less
than
90
day
sAE
D 0
00
90 d
ays
and
abov
eAE
D 0
00To
tal
AED
000
Spec
ific*
AED
000
Gene
ral*
*AE
D 00
0W
rite
-off
sAE
D 0
00W
rite
-bac
ksAE
D 0
00U
nite
d Ar
ab E
mira
tes
- 27
,013
,242
27
,013
,242
18,7
80,4
20 -
1,96
0,59
51,
051,
739
7,68
8,70
454
4,11
8
GCC
exc
ludi
ng U
AE**
* -
2,11
2,49
8 2,
112,
498
618,
580
- -
2,24
438
8,73
31,
105,
185
Arab
Lea
gue
(exc
ludi
ng
GCC
) -
137,
082
137,
082
153,
849
- 45
,358
36,6
2927
,613
(44,
380)
Asia
-
4,73
5,84
3 4,
735,
843
1,22
6,86
7 -
- 42
7,25
98,
187
3,50
0,78
9
Afric
a -
22
2218
- -
- -
4
Nor
th A
mer
ica
- 16
1 16
151
- -
- -
110
Sout
h Am
eric
a -
- -
- -
- -
- -
Carib
bean
-
- -
- -
- -
- -
Euro
pe -
149,
890
149,
890
139,
439
- -
3,49
111
,055
(604
)
Aust
ralia
- -
- -
- -
- -
-
Oth
ers
- 9
928
- -
- -
(19)
Tota
l -
34,
148,
747
34,
148,
747
20,
919,
252
8,3
07,1
43 2
,005
,953
1
,521
,362
8
,124
,292
5
,105
,203
*Spe
cific
pro
visi
ons
repr
esen
t Sta
ge 3
Exp
ecte
d Cr
edit
Loss
(‘EC
L’).
**G
ener
al p
rovi
sion
s re
pres
ent S
tage
1 a
nd S
tage
2 E
xpec
ted
Cred
it Lo
ss (‘
ECL’)
.
***T
his
incl
udes
Sau
di A
rabi
a, B
ahra
in, K
uwai
t, O
man
and
Qat
ar.
23 24EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
RECONCILIATION OF CHANGES IN PROVISION FOR IMPAIRED LOANS
2019AED 000
2018AED 000
Balance of provision for impaired loans as at 1 January (as per IAS 39) 26,702,508 25,293,047
Reversal on transition to IFRS 9 - (7,611,048)
ECL recognised under IFRS 9 - 10,025,398
Balance at 1 January (Adjusted opening as per IFRS 9) 26,702,508 27,707,397
Add: Charge for the year
Specific Provisions (ECL Stage 3) 5,212,367 3,822,879
General Provisions (ECL Stage 1 and Stage 2) 1,419,340 (46,253)
Less: Write-off of impaired loans (2,005,953) (3,148,844)
Less: Recovery of loans previously written off - -
Less: Write back/Recovery of loan loss provisions (1,521,362) (1,631,210)
Less: Exchange and other adjustments of loan loss provisions (580,505) (1,461)
Balance of provision for impaired loans as at 31 December 29,226,395 26,702,508
The
Gro
ss C
redi
t Ex
posu
res
as p
er S
tand
ardi
sed
App
roac
h w
ith
the
effec
t of
CRM
as
deta
iled
belo
w:
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH
31 D
ECEM
BER
2019
On
Bala
nce
Shee
tG
ross
O
utst
andi
ngAE
D 0
00
Off
-Bal
ance
Sh
eet N
et
Expo
sure
af
ter
Cred
it
Conv
ersi
on
Fact
ors
(CCF
)AE
D 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CRM
AED
000
CRM
AED
000
Afte
r CR
MAE
D 0
00
Risk
W
eigh
ted
Asse
tsAE
D 0
00Cl
aim
s on
sov
erei
gns
307,
879,
445
209,
279
308,
088,
724
308,
088,
724
- 30
8,08
8,72
4 41
,060
,094
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
1,13
8,17
7 17
9,17
8 1,
317,
355
1,31
7,35
5 -
1,31
7,35
5 12
2,84
9
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
113,
847
- 11
3,84
7 11
3,84
7 -
113,
847
-
Clai
ms
on b
anks
43,5
93,6
60
11,9
46,8
15
55,5
40,4
75
55,5
40,4
75
10,1
82,9
64
45,3
57,5
11
25,9
16,2
26
Clai
ms
on s
ecur
ities
firm
s-
3,92
9 3,
929
3,92
9 -
3,92
9 3,
929
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
162,
824,
783
55,8
51,1
82
218,
675,
965
218,
675,
965
25,7
26,3
64
192,
949,
601
190,
959,
340
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio69
,831
,597
3,
201,
183
73,0
32,7
80
73,0
32,7
80
4,64
4,96
0 68
,387
,820
52
,871
,754
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y16
,699
,384
-
16,6
99,3
84
16,6
99,3
84
1,21
1 16
,698
,173
8,
127,
016
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e39
,243
,989
2,37
4,49
3 41
,618
,482
41
,618
,482
-
41,6
18,4
82
41,6
18,4
82
Past
due
loan
s34
,148
,747
1,
275,
233
35,4
23,9
80
6,38
0,43
6 21
,050
6,
359,
386
7,77
7,13
7
Hig
her-
risk
cate
gorie
s27
3,19
1 -
273,
191
273,
191
- 27
3,19
1 40
9,78
7
Oth
er a
sset
s23
,391
,553
44
,845
23
,436
,398
23
,436
,398
-
23,4
36,3
98
16,4
24,5
96
Clai
ms
on s
ecur
itise
d as
sets
- -
- -
- -
-
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
--
--
--
-
Tota
l69
9,13
8,37
375
,086
,137
774,
224,
510
745,
180,
966
40,5
76,5
4970
4,60
4,41
738
5,29
1,21
0
25 26EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D/U
NRA
TED
)
31 D
ECEM
BER
2019
Rate
dAE
D 0
00U
nrat
edAE
D 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CRM
AED
000
Afte
r CR
MAE
D 0
00
Risk
Wei
ghte
d As
sets
AED
000
Clai
ms
on s
over
eign
s 5
8,52
7,31
6 24
9,56
1,40
8 30
8,08
8,72
4 30
8,08
8,72
4 30
8,08
8,72
4 41
,060
,094
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
60
6,25
5 71
1,10
0 1,
317,
355
1,31
7,35
5 1,
317,
355
122,
849
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
113,
847
- 11
3,84
7 11
3,84
7 11
3,84
7 -
Clai
ms
on b
anks
46,7
81,0
03
8,75
9,47
2 55
,540
,475
55
,540
,475
45
,357
,511
25
,916
,226
Clai
ms
on s
ecur
ities
firm
s-
3,92
9 3,
929
3,92
9 3,
929
3,92
9
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
4,15
8,32
5 21
4,51
7,64
0 21
8,67
5,96
5 21
8,67
5,96
5 19
2,94
9,60
1 19
0,95
9,34
0
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio-
73,0
32,7
80
73,0
32,7
80
73,0
32,7
80
68,3
87,8
20
52,8
71,7
54
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y -
16,6
99,3
84
16,6
99,3
84
16,6
99,3
84
16,6
98,1
73
8,12
7,01
6
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e-
41,6
18,4
82
41,6
18,4
82
41,6
18,4
82
41,6
18,4
82
41,6
18,4
82
Past
due
loan
s-
35,4
23,9
80
35,4
23,9
80
6,38
0,43
6 6,
359,
386
7,77
7,13
7
Hig
her-
risk
cate
gorie
s-
273,
191
273,
191
273,
191
273,
191
409,
787
Oth
er a
sset
s49
7,85
8 22
,938
,540
23
,436
,398
23
,436
,398
23
,436
,398
16
,424
,596
Clai
ms
on s
ecur
itise
d as
sets
- -
- -
- -
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
- -
- -
- -
Tota
l11
0,68
4,60
466
3,53
9,90
677
4,22
4,51
074
5,18
0,96
670
4,60
4,41
738
5,29
1,21
0
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (C
ON
TIN
UED
)
31 D
ECEM
BER
2018
On
Bala
nce
Shee
tG
ross
O
utst
andi
ngAE
D 0
00
Off
-Bal
ance
Sh
eet N
et
Expo
sure
af
ter
Cred
it
Conv
ersi
on
Fact
ors
(CCF
)AE
D 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CRM
AED
000
CRM
AED
000
Afte
r CR
MAE
D 0
00
Risk
W
eigh
ted
Asse
tsAE
D 0
00Cl
aim
s on
sov
erei
gns
244,
268,
250
167,
495
244,
435,
745
244,
435,
745
-24
4,43
5,74
58,
246,
168
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
783,
931
64,8
6984
8,80
084
8,80
0-
848,
800
88,2
94
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,6
90-
14,6
9014
,690
-14
,690
-
Clai
ms
on b
anks
41,2
26,0
5511
,782
,209
53,0
08,2
6452
,971
,035
7,46
6,64
045
,504
,395
27,6
01,5
38
Clai
ms
on s
ecur
ities
firm
s-
--
--
--
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
90,5
33,3
0735
,785
,767
126,
319,
074
126,
319,
074
13,5
50,5
9411
2,76
8,48
011
1,80
0,92
1
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio35
,660
,593
677,
002
36,3
37,5
9536
,337
,595
1,65
9,88
234
,677
,713
26,6
20,8
06
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y15
,856
,498
-15
,856
,498
15,8
56,4
98-
15,8
56,4
9810
,999
,715
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e43
,263
,107
1,14
1,37
044
,404
,477
44,4
04,4
77-
44,4
04,4
7744
,404
,477
Past
due
loan
s28
,088
,692
479,
914
28,5
68,6
062,
214,
095
-2,
214,
095
2,78
6,40
1
Hig
her-
risk
cate
gorie
s42
9,97
1-
429,
971
429,
971
-42
9,97
164
4,95
7
Oth
er a
sset
s16
,347
,646
-16
,347
,646
16,3
47,6
46-
16,3
47,6
4610
,666
,870
Clai
ms
on s
ecur
itise
d as
sets
--
--
--
-
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
--
--
--
-
Tota
l51
6,47
2,74
0 5
0,09
8,62
656
6,57
1,36
654
0,17
9,62
6 2
2,67
7,11
651
7,50
2,51
024
3,86
0,14
7
27 28EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
EXPO
SURE
SU
BJEC
T TO
DED
UCT
ION
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D/U
NRA
TED
)
31 D
ECEM
BER
2019
Rate
dA
ED 0
00U
nrat
edA
ED 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CR
MA
ED 0
00A
fter
CRM
AED
000
Risk
W
eigh
ted
Ass
ets
AED
000
Clai
ms
on s
over
eign
s-
--
--
-
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
-
--
--
-
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
--
--
--
Clai
ms
on b
anks
10,0
88,7
67
1,3
51,9
03
11,
440,
670
11,
440,
670
1,2
57,7
06
628
,853
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
411
,654
5
9,23
1,27
2 5
9,64
2,92
6 5
9,64
2,92
6 3
3,91
6,56
2 3
3,91
6,56
2
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio -
7,8
84,5
52
7,8
84,5
52
7,8
84,5
52
3,2
39,5
92
2,4
29,6
94
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y -
1,2
11
1,2
11
1,2
11
- -
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e -
--
- -
-
Past
due
loan
s -
93,
049
93,
049
46,
413
25,
363
25,
363
Hig
her-
risk
cate
gorie
s-
--
--
-
Oth
er a
sset
s-
--
--
-
Clai
ms
on s
ecur
itise
d as
sets
- -
- -
- -
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
- -
- -
- -
Tota
l10
,500
,421
6
8,56
1,98
7 7
9,06
2,40
8 7
9,01
5,77
2 3
8,43
9,22
3 3
7,00
0,47
2
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D/U
NRA
TED
) (co
ntin
ued)
31 D
ECEM
BER
2018
Rate
dAE
D 0
00U
nrat
edAE
D 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CRM
AED
000
Afte
r CR
MAE
D 0
00
Risk
Wei
ghte
d As
sets
AED
000
Clai
ms
on s
over
eign
s8,
811,
937
235,
623,
808
244,
435,
745
244,
435,
745
244,
435,
745
8,24
6,16
8
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
26
6,64
258
2,15
884
8,80
084
8,80
084
8,80
088
,294
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,6
90 -
14,6
9014
,690
14,6
90
-
Clai
ms
on b
anks
36,9
54,8
4816
,053
,416
53,0
08,2
6452
,971
,035
45,5
04,3
9527
,601
,538
Clai
ms
on s
ecur
ities
firm
s-
--
--
-
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
1,73
1,11
912
4,58
7,95
512
6,31
9,07
412
6,31
9,07
411
2,76
8,48
011
1,80
0,92
1
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio -
36,
337,
595
36,
337,
595
36,
337,
595
34,
677,
713
26,
620,
806
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y -
15,
856,
498
15,
856,
498
15,
856,
498
15,8
56,4
98
10,
999,
715
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e-
44,4
04,4
77
44,4
04,4
77
44,4
04,4
77
44,4
04,4
77
44,4
04,4
77
Past
due
loan
s -
28,
568,
606
28,
568,
606
2,2
14,0
95 2
,214
,095
2,7
86,4
01
Hig
her-
risk
cate
gorie
s -
429
,971
4
29,9
71
429
,971
429,
971
644
,957
Oth
er a
sset
s-
16,3
47,6
4616
,347
,646
16,3
47,6
4616
,347
,646
10,6
66,8
70
Clai
ms
on s
ecur
itise
d as
sets
- -
- -
- -
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
- -
- -
- -
Tota
l47
,779
,236
518,
792,
130
566,
571,
366
540,
179,
626
517,
502,
510
243,
860,
147
29 30EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
CRED
IT R
ISK
MIT
IGA
TIO
N A
S PE
R ST
AN
DA
RDIS
ED A
PPRO
ACH
201
920
18
G
ross
cre
dit
expo
sure
(AED
000
)Ri
sk w
eigh
ted
asse
ts(A
ED 0
00)
Gro
ss c
redi
t ex
posu
re(A
ED 0
00)
Risk
wei
ghte
d as
sets
(AED
000
)
Gro
ss e
xpos
ure
prio
r to
cre
dit
risk
mit
igat
ion
774,
224,
510
454,
911,
303
566,
571,
366
292,
929,
003
Expo
sure
cov
ered
by
on-b
alan
ce s
heet
net
ting
(29,
043,
544)
(29,
043,
544)
(26,
391,
740)
(26,
391,
740)
Expo
sure
cov
ered
by
elig
ible
fina
ncia
l col
late
ral
(39,
334,
333)
(3
9,33
4,33
3)(2
1,39
5,63
2)(2
1,39
5,63
2)
Expo
sure
cov
ered
by
Gua
rant
ees
(1,2
42,2
16)
(1,2
42,2
16)
(1,2
81,4
84)
(1,2
81,4
84)
Net
exp
osur
e af
ter
cred
it r
isk
mit
igat
ion
704,
604,
417
385,
291,
210
517,
502,
510
243,
860,
147
EXPO
SURE
SU
BJEC
T TO
DED
UCT
ION
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D/U
NRA
TED
) (co
ntin
ued)
31 D
ECEM
BER
2018
Rate
dA
ED 0
00U
nrat
edA
ED 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CR
MA
ED 0
00A
fter
CRM
AED
000
Risk
W
eigh
ted
Ass
ets
AED
000
Clai
ms
on s
over
eign
s-
--
--
-
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
-
--
--
-
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
--
--
--
Clai
ms
on b
anks
4,38
3,20
63,
408,
948
7,79
2,15
47,
792,
154
325,
514
162,
757
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
- 4
7,54
1,48
2 4
7,54
1,48
2 4
7,54
1,48
2 3
3,99
0,88
8 3
3,99
0,88
8
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio-
3,71
4,65
13,
714,
651
3,71
4,65
12,
054,
769
1,5
41,0
76
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y-
--
--
-
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e-
--
--
-
Past
due
loan
s-
--
--
-
Hig
her-
risk
cate
gorie
s-
--
--
-
Oth
er a
sset
s-
--
--
-
Clai
ms
on s
ecur
itise
d as
sets
--
--
--
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
--
--
--
Tota
l4,
383,
206
54,
665,
081
59,
048,
287
59,
048,
287
36,
371,
171
35,
694,
721
31 32EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
QU
AN
TITA
TIVE
DIS
CLO
SURE
S FO
R EQ
UIT
Y PO
SITI
ON
IN T
HE
BAN
KIN
G B
OO
K (c
onti
nued
)
31 D
ECEM
BER
2019
(d) C
apit
al r
equi
rem
ents
by
Equi
ty g
roup
ings
AED
000
Gro
upin
gA
mou
nt
Inve
stm
ents
in a
ssoc
iate
and
join
t ven
ture
19,4
96
Inve
stm
ent s
ecur
ities
195,
225
Hel
d fo
r tra
ding
-
Tota
l cap
ital
req
uire
men
t21
4,72
1
(e) E
quit
y In
vest
men
ts (Q
uote
d/U
nquo
ted)
- In
clud
ing
priv
ate
equi
ty in
vest
men
ts
AED
000
Part
icul
ars
Bank
ing
Book
(Per
Ba
sel I
I Defi
niti
on)
Trad
ing
Book
(Per
Ba
sel I
I Defi
niti
on)
Quo
ted
998,
594
-
Unq
uote
d34
7,78
4-
Tota
l1,
346,
378
-
RISK
MA
NA
GEM
ENT
OBJ
ECTI
VES
AN
D P
OLI
CIES
MA
RKET
RIS
K
Plea
se r
efer
Not
e no
. 50
in th
e an
nual
fina
ncia
l sta
tem
ents
for
deta
iled
risk
man
agem
ent o
bjec
tives
, yea
r-en
d Va
R nu
mbe
rs, o
vera
ll in
tere
st s
ensi
tivity
in
the
Bank
ing
book
and
pol
icie
s on
Mar
ket r
isk.
QU
AN
TITA
TIVE
DIS
CLO
SURE
S FO
R EQ
UIT
Y PO
SITI
ON
IN T
HE
BAN
KIN
G B
OO
K
31 D
ECEM
BER
2019
(a) Q
uant
itat
ive
Det
ails
of E
quit
y Po
siti
onA
ED 0
00
Type
FS C
ateg
ory
(FVO
CI/
Am
orti
sed
cost
)
Base
l II
Cate
gory
(B
anki
ng
book
)
Curr
ent
Year
Publ
icly
Tr
aded
Priv
atel
y H
eld
Equi
ties
1,34
6,37
81,
346,
378
998,
594
347,
784
Colle
ctiv
e in
vest
men
t sch
emes
--
--
Any
othe
r inv
estm
ent
--
--
Tota
l1,
346,
378
1,34
6,37
899
8,59
434
7,78
4(b
) Rea
lised
, Unr
ealis
ed &
Lat
ent
reva
luat
ion
gain
s/(lo
sses
) dur
ing
the
year
AED
000
Part
icul
ars
FVO
CI
Gai
ns (L
osse
s)Re
alis
ed g
ains
(los
ses)
from
sal
e an
d liq
uida
tions
(65,
295)
Unr
ealis
ed g
ains
(los
ses)
reco
gnis
ed in
the
bala
nce
shee
t but
not
thro
ugh
profi
t and
loss
ac
coun
t13
9,52
6
Late
nt re
valu
atio
n ga
ins
(loss
es) f
or in
vest
men
t rec
orde
d at
cos
t but
not
reco
gnis
ed in
ba
lanc
e sh
eet o
r pro
fit a
nd lo
ss a
ccou
nt-
Tota
l74
,231
(c) I
tem
s in
(b) a
bove
incl
uded
in T
ier
I/Ti
er II
Cap
ital
A
ED 0
00Ti
er C
apit
alA
mou
nt
Amou
nt in
clud
ed in
Tie
r I c
apita
l (re
alis
ed g
ains
)(6
5,29
5)Am
ount
incl
uded
in T
ier I
I cap
ital (
unre
alis
ed g
ains
)-
Tota
l(6
5,29
5)
33 34EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
QU
AN
TITA
TIVE
DIS
CLO
SURE
S FO
R EQ
UIT
Y PO
SITI
ON
IN T
HE
BAN
KIN
G B
OO
K (c
onti
nued
)
31 D
ECEM
BER
2018
(d) C
apit
al r
equi
rem
ents
by
Equi
ty g
roup
ings
AED
000
Gro
upin
gA
mou
nt
Inve
stm
ents
in a
ssoc
iate
and
join
t ven
ture
213,
458
Inve
stm
ent s
ecur
ities
67,2
78
Hel
d fo
r tra
ding
-
Tota
l cap
ital
req
uire
men
t28
0,73
6
(e) E
quit
y in
vest
men
ts (Q
uote
d/U
nquo
ted)
- In
clud
ing
priv
ate
equi
ty in
vest
men
ts
AED
000
Part
icul
ars
Bank
ing
Book
(Per
Ba
sel I
I Defi
niti
on)
Trad
ing
Book
(Per
Base
l II D
efini
tion
)Q
uote
d12
0,48
8-
Unq
uote
d37
7,86
9-
Tota
l49
8,35
7-
QU
AN
TITA
TIVE
DIS
CLO
SURE
S FO
R EQ
UIT
Y PO
SITI
ON
IN T
HE
BAN
KIN
G B
OO
K (c
onti
nued
)
31 D
ECEM
BER
2018
(a) Q
uant
itat
ive
Det
ails
of E
quit
y Po
siti
onA
ED 0
00
Type
FS C
ateg
ory
(FVO
CI/
Am
orti
Sed
cost
)
Base
l II
Cate
gory
(B
anki
ng
book
)
Curr
ent
Year
Publ
icly
Trad
edPr
ivat
ely
Hel
dEq
uitie
s49
8,35
749
8,35
712
0,48
837
7,86
9
Colle
ctiv
e in
vest
men
t sch
emes
--
--
Any
othe
r inv
estm
ent
--
--
Tota
l49
8,35
749
8,35
712
0,48
837
7,86
9
(b) R
ealis
ed, U
nrea
lised
& L
aten
t re
valu
atio
n ga
ins/
(loss
es) d
urin
g th
e ye
arA
ED 0
00
Part
icul
ars
FVO
CI
Gai
ns (L
osse
s)
Real
ised
gai
ns (l
osse
s) fr
om s
ale
and
liqui
datio
ns57
,776
Unr
ealis
ed g
ains
(los
ses)
reco
gnis
ed in
the
bala
nce
shee
t but
not
thro
ugh
profi
t and
loss
ac
coun
t(9
8,70
6)
Late
nt re
valu
atio
n ga
ins
(loss
es) f
or in
vest
men
t rec
orde
d at
cos
t but
not
reco
gnis
ed in
ba
lanc
e sh
eet o
f pro
fit a
nd lo
ss a
ccou
nt-
Tota
l(4
0,93
0)
(c) I
tem
s in
(b) a
bove
incl
uded
in T
ier
I/Ti
er II
Cap
ital
A
ED 0
00
Tier
Cap
ital
Am
ount
Amou
nt in
clud
ed in
Tie
r I c
apita
l (re
alis
ed g
ains
)57
,776
Amou
nt in
clud
ed in
Tie
r II c
apita
l (un
real
ised
gai
ns)
-
Tota
l57
,776
35 36EMIRATES NBD BANK PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2019
RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign Exchange Risk
Foreign exchange risk hedging strategies are used to ensure that positions are always within established limits. The Group has a conservative policy towards foreign exchange risk and has set limits on positions by currency. Foreign exchange risk is measured using position reports showing the net long or short position for currencies, which are monitored on a real-time basis. Foreign exchange risk is actively managed using spot and forward foreign exchange instruments.
The capital requirement for foreign exchange risk as at 31 December 2019 is AED 129.73 million (as at 31 December 2018 is AED 26.82 million).
Operational Risk
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for Operational risk.
Liquidity Risk
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for Liquidity risk.
Reputational Risk
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for Reputation risk.
Regulatory/Compliance Risk
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for Regulatory/compliance risk.
Internal Audit’s role in overall risk management
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for details on Internal Audit’s role in overall risk management.
Risk management framework and processes at Emirates Islamic Bank (EI)
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for details on Risk management framework and processes at EIB.
Risk management framework and processes at DenizBank
Please refer Note no. 50 in the annual financial statements for detailed risk management objectives and policies for details on Risk management framework and processes at DenizBank.