EMIRATES NBD BANK PJSCBASEL II – PILLAR III DISCLOSURESFOR THE YEAR ENDED 31 DECEMBER 2017
EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
BASEL II – PILLAR III DISCLOSURES
Contents Page
Overview 1
Information on subsidiaries and significant investments 4
Consolidated capital structure as per Basel III 6
Consolidated capital structure as per Basel II 8
Gross credit exposure 11
Capital requirement for market risk as per standardised approach 12
Gross credit exposure by currency 13
Gross credit exposure by geography 14
Gross credit exposure by economic activity 15
Gross credit exposure as per standardised approach 17
Gross credit exposure as per standardised approach (Rated / Unrated) 19
Exposure subject to deduction as per standardised approach (Rated / Unrated) 21
Credit risk mitigation as per standardised approach 23
Impaired loans by economic activity 24
Impaired loans by geography 26
Reconciliation of changes in provision for impaired loans 28
Quantitative disclosures for equity position in the banking book 29
Gross credit exposure by maturity 35
1 2EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
OVERVIEW (continued)
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 – Tier I and Tier II
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 II framework of the Basel Committee on Banking Supervision (“Basel Committee”), after applying the amendments advised by the CBUAE, within national discretion. 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 2017
Pillar III complements the minimum capital requirements and the supervisory review process. Its aim is to encourage market discipline by developing a disclosure requirements which allow market participants to assess certain specified information on the scope of application of Basel II, 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 Central Bank of UAE (‘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. The Additional capital buffers (CCB and CCyB- maximum up to 5%) introduced are over and above the minimum CET1 requirement of 7%.
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.
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.
3 4EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
The
com
plet
e lis
ting
of a
ll di
rect
sub
sidi
arie
s, a
ssoc
iate
com
pani
es a
nd jo
int v
entu
res
of E
mira
tes
NBD
as
of 3
1 D
ecem
ber 2
017
is a
s fo
llow
s:
Subs
idia
ries
:G
roup
%
Shar
ehol
ding
Nat
ure
of
Busi
ness
Coun
try
of
Inco
rpor
atio
n
Des
crip
tion
of
Acc
ount
ing
Trea
tmen
t (C
onso
lidat
ion/
In
vest
men
t A
ccou
ntin
g)
Des
crip
tion
of
Reg
ulat
ory
Capi
tal T
reat
men
t (C
onso
lidat
ion/
D
educ
tion
from
ca
pita
l/ne
ithe
r)
Bank
’s t
otal
in
tere
sts
(cur
rent
bo
ok v
alue
) in
insu
ranc
e en
titi
es
(AED
000
)
Buzz
Con
tact
Cen
tre
Solu
tions
LL
C10
0
Call
Cent
re
Man
agem
ent
Serv
ices
Dub
ai, U
.A.E
.Co
nsol
idat
ion
Cons
olid
atio
n-
ENBD
Lon
don
Bran
ch N
omin
ee
Com
pany
100
Asse
t Man
agem
ent
Engl
and
Cons
olid
atio
n Co
nsol
idat
ion
-Em
irate
s N
BD C
apita
l PSC
100
Fund
s M
anag
emen
tD
ubai
, U.A
.E.
Cons
olid
atio
nCo
nsol
idat
ion
-Em
irate
s Fu
nds
Man
ager
s (Je
rsey
) Li
mite
d10
0As
set M
anag
emen
tJe
rsey
Cons
olid
atio
nCo
nsol
idat
ion
-Em
irate
s N
BD P
rope
rtie
s LL
C10
0Re
al E
stat
eD
ubai
, U.A
.E.
Cons
olid
atio
nD
educ
tion
-Em
irate
s N
BD S
ecur
ities
LLC
100
Brok
erag
e Se
rvic
esD
ubai
, U.A
.E.
Cons
olid
atio
nCo
nsol
idat
ion
-Em
irate
s N
BD A
sset
Man
agem
ent
Lim
ited
100
Asse
t Man
agem
ent
Dub
ai, U
.A.E
.Co
nsol
idat
ion
Cons
olid
atio
n-
Emira
tes
Isla
mic
Ban
k PJ
SC99
.9Is
lam
ic B
anki
ngD
ubai
, U.A
.E.
Cons
olid
atio
nCo
nsol
idat
ion
-Em
irate
s M
oney
Con
sum
er
Fina
nce
LLC
100
Cons
umer
Fin
ance
Dub
ai, U
.A.E
.Co
nsol
idat
ion
Cons
olid
atio
n-
Emira
tes
Fund
s LL
C10
0As
set M
anag
emen
tD
ubai
, U.A
.E.
Cons
olid
atio
nCo
nsol
idat
ion
-Em
irate
s N
BD C
apita
l (KS
A) L
LC10
0In
vest
men
t Ser
vice
sKS
A.Co
nsol
idat
ion
Cons
olid
atio
n-
Emira
tes
NBD
Tru
st C
ompa
ny
(Jers
ey) L
imite
d10
0Tr
ust A
dmin
istr
atio
n Se
rvic
esJe
rsey
Cons
olid
atio
nCo
nsol
idat
ion
-D
ubai
Ban
k PJ
SC10
0Is
lam
ic B
anki
ngD
ubai
, U.A
.E.
Cons
olid
atio
nCo
nsol
idat
ion
-
Tanf
eeth
LLC
100
Shar
ed S
ervi
ces
Org
aniz
atio
nD
ubai
, U.A
.E.
Cons
olid
atio
nCo
nsol
idat
ion
-
Emira
tes
NBD
Glo
bal F
undi
ng
Lim
ited
100
Med
ium
-term
Bo
rrow
ing
and
Mon
ey M
arke
t Tr
ansa
ctio
nsCa
yman
Isla
nds
Cons
olid
atio
nCo
nsol
idat
ion
-
KSA
Mor
tgag
e Co
mpa
ny10
0
Nom
inee
Com
pany
fo
r Mor
tgag
e Bu
sine
ssKS
A.Co
nsol
idat
ion
Cons
olid
atio
n-
Emira
tes
NBD
Egy
pt S
.A.E
100
Bank
ing
Egyp
tCo
nsol
idat
ion
Cons
olid
atio
n -OVERVIEW (continued)
Future Developments
The CBUAE issued Basel III Capital and Liquidity regulations. The increased capital and liquidity regulations are being implemented and complied with by the Group.
The CBUAE is in the process of reviewing and incorporating residual Basel III regulations and the Group is tracking these developments and necessary dialogue conducted with the Central Bank of UAE, for timely changes to the Capital Management and Disclosure regimes.
Verification
The Pillar III Disclosures for the year 2017 have been appropriately verified internally and 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 31 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. Details on Pillar II methodologies are contained in the section – “Internal Capital Adequacy Assessment Process” of this report.
Group Structure
The Bank was incorporated in the United Arab Emirates on 16 July 2007, under the Commercial Companies Law (Federal Law Number 8 of 1984 as amended) as a Public Joint Stock Company. The bank is listed on the Dubai Financial Market (Ticker: “EMIRATESNBD”). The Federal Law No. 2 of 2015, concerning Commercial Companies has come into effect from 1 July 2015, replacing the existing Federal Law No. 8 of 1984.
The Group’s principal business activity is corporate banking, consumer banking, treasury and Islamic banking.
5 6EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL III
The Central Bank of UAE (‘CBUAE’) issued Basel III capital regulations, which came into effect from 1 February 2017 (parallel reporting for Q2’17 and Q3’17 and Primary reporting from Q4’17 onwards) introducing minimum capital requirements at three levels, namely Common Equity Tier 1 (‘CET1’), Tier 1 (‘T1’) and Total Capital.
The 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%.
For 2017, CCB is effective in transition arrangement and is required to keep at 1.25% of the Capital base. For 2018, CCB will be required at 1.88% and from 2019; it will be required to keep at 2.5% of the Capital base. CCyB is not in effect and is not required to keep for 2017.
Over and above additional capital buffers, the Group has been classified as Domestic Systematically Important Bank (D-SIB) and is required to keep an additional D-SIB buffer of 0.75% of the Capital base for 2017. This buffer will increase to 1.5% of the Capital base by 2019.
Common Equity Tier 1 (CET1) Capital 2017AED 000
Share capital 5,557,775
Share premium account 12,270,124
Eligible reserves 4,429,333
Retained earnings / (-) loss 27,403,808
Dividend expected / proposed (2,223,110)
Eligible amount of minority interest 8,028
Capital shortfall if any -
CET1 Capital before the regulatory adjustments and threshold deduction 47,445,958
Less: Regulatory deductions (5,995,195)
Less: Threshold deductions -
Total CET1 Capital after the regulatory adjustments and threshold deduction 41,450,763
Total CET1 Capital after transitional arrangement for deductions (CET1) (A)* 42,649,802
Additional Tier 1 (AT1) Capital
Eligible AT1 Capital 9,477,076
Other AT1 Capital e.g. (Share premium, minority interest) -
Total AT1 Capital 9,477,076
Total AT1 Capital after transitional arrangements (AT1) (B)* 8,877,557
Tier 2 (T2) Capital
Tier 2 Instruments e.g. subordinated loan 3,752,068
Other Tier 2 Capital (including General Provisions, etc.) 3,102,694
Total T2 Capital 6,854,762
Total T2 Capital after transitional arrangements (T2) ( C )* 6,255,243
Total Regulatory Capital ( A+B+C) 57,782,602
* As per transitional arrangement 80% deduction is taken in CET 1, 10% in AT1 and 10% in Tier 2 for 2017.
Subs
idia
ries
:G
roup
%
Shar
ehol
ding
Nat
ure
of B
usin
ess
Coun
try
of
Inco
rpor
atio
n
Des
crip
tion
of
Acc
ount
ing
Trea
tmen
t (C
onso
lidat
ion/
In
vest
men
t A
ccou
ntin
g)
Des
crip
tion
of
Reg
ulat
ory
Capi
tal
Trea
tmen
t (C
onso
lidat
ion/
D
educ
tion
from
ca
pita
l/ne
ithe
r)
Bank
’s t
otal
in
tere
sts
(cur
rent
bo
ok v
alue
) in
insu
ranc
e en
titi
es (A
ED
000)
ENBD
Ass
et F
inan
ce C
ompa
ny
No.
1 Li
mite
dSP
E fo
r ass
et s
ecur
itisa
tion
Cons
olid
atio
nCo
nsol
idat
ion
-
Emira
tes
NBD
Tie
r 1 L
imite
dSP
E fo
r ass
et s
ecur
itisa
tion
Cons
olid
atio
nCo
nsol
idat
ion
-
Emira
tes
NBD
201
4 Ti
er 1
Lim
ited
SPE
for a
sset
sec
uriti
satio
nCo
nsol
idat
ion
Cons
olid
atio
n-
Emira
tes
NBD
Glo
bal M
arke
ts
Lim
ited
SPE
for a
sset
sec
uriti
satio
nCo
nsol
idat
ion
Cons
olid
atio
n-
ENBD
Ass
et F
inan
ce C
ompa
ny
No.
2 Li
mite
dSP
E fo
r ass
et s
ecur
itisa
tion
Cons
olid
atio
nCo
nsol
idat
ion
-
Gro
up T
ranc
he o
f Em
blem
Fi
nanc
e Co
mpa
ny N
o. 2
Lim
ited
SPE
for a
sset
sec
uriti
satio
n Co
nsol
idat
ion
Cons
olid
atio
n-
EIB
Suku
k Co
mpa
ny L
imite
dSP
E fo
r ass
et s
ecur
itisa
tion
Cons
olid
atio
nCo
nsol
idat
ion
-
EI F
undi
ng L
imite
d SP
E fo
r ass
et s
ecur
itisa
tion
Cons
olid
atio
n C
onso
lidat
ion
-
Ass
ocia
te:
Nat
iona
l Gen
eral
Insu
ranc
e Co
mpa
ny P
SC36
.7G
ener
al a
nd li
fe in
sura
nce
Dub
ai, U
.A.E
.Eq
uity
Acc
ount
ing
Ded
uctio
n 18
1,51
0
Join
t ve
ntur
e:
Net
wor
k In
tern
atio
nal L
LC.
51Ca
rd p
roce
ssin
g se
rvic
esD
ubai
, U.A
.E.
Equi
ty A
ccou
ntin
g
Nei
ther
- In
clud
ed
in g
ross
cre
dit
expo
sure
as
inve
stm
ent a
t ca
rryi
ng v
alue
-
7 8EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL II The Group’s regulatory capital is calculated as per the guidelines issued by CBUAE and it comprises:
a) Tier 1 Capital which is considered as the core measure of the Group’s financial strength and includes share capital, reserves, retained earnings and minority interests (net of treasury shares and goodwill) and;
b) Tier 2 Capital which consists of qualified subordinated debts and allowed portions of revaluation reserves and general provisions.
The Bank’s share capital as at 31 December 2017 comprised of 5,557,774,724 issued and fully paid shares of value AED 1 each. The detailed breakdown of the capital structure of the bank is as follows:
Particulars 2017AED 000
2016AED 000
Tier 1 Capital1. Paid-up share capital / common stock 17,827,899 17,827,899
2. Reservesa. Statutory reserve 2,778,888 2,778,888b. Special reserve - -c. General reserve 29,054,253 23,705,183
3. Non-controlling interest in the equity of subsidiaries 8,028 7,256
4. Innovative capital instruments - -
5. Other capital instruments 9,477,076 9,477,076
6. Surplus capital from insurance companies - -
Subtotal 59,146,144 53,796,302
Less: Deductions for regulatory calculationLess: Deductions from Tier 1 capital (5,734,378) (5,873,325)Less: Significant investment in insurance entities (378,652) (86,863)
Tier 1 Capital - Subtotal (A) 53,033,114 47,836,114
Tier 2 Capital 6,841,835 6,619,588
Less: Significant investment in insurance entities (378,652) (86,863)
Tier 2 Capital (B) 6,463,183 6,532,725
Less: Other deductions from capitals (C) - -Tier 3 Capital (D) - -
Total eligible capital after deductions (A+B+C+D) 59,496,297 54,368,839
NoteThe 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.
CONSOLIDATED CAPITAL STRUCTURE AS PER BASEL III (continued)
The capital adequacy ratios as per Basel III capital regulation are given below:
Capital Ratio 2017
Minimum capital requirement
2017
Minimum capital requirement by
2019a. Total capital ratio for consolidated Group 21.16% 12.50% 14.50%
b. Tier 1 ratio only for consolidated Group 18.87% 10.50% 12.50%
c. CET1 ratio only for consolidated Group 15.62% 9.00% 11.00%
Note: On 17 January 2018, Central Bank of UAE issued Basel III Capital supply standards and guidance. Based on this guidance, banks are required to deduct proposed dividend for 2017 from retained earnings.
Accordingly, capital adequacy ratio as per Basel III is adjusted in the Pillar III disclosure. Considering impact of 2017 proposed dividend in Q4’17, there is reduction in the capital adequacy ratio (as per Basel III) by 82bps to 21.16% from 21.98% which was published in 2017 audited financial statements.
9 10EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
CAPITAL ADEQUACY (STANDARDISED APPROACH) (continued)
Capital Ratio
2017 2016
Total for top consolidated Group 21.88% 21.22%
Tier 1 ratio only for top consolidated group 19.50% 18.67%
Total for each significant bank subsidiary:
Emirates Islamic Bank 17.36% 16.05%
Note
Risk weighted assets as at 31 December 2017 were AED 271,979 million and as at 31 December 2016 were AED 256,169 million.
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%.• 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.
Note (continued)
Issuance Month / Year Issued Amount Coupon rate
September 2014 USD 500 million (AED 1.83 billion) Fixed interest rate with a reset after six years
May 2013 USD 1 billion (AED 3.67 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.
Capital Adequacy
The Group’s Capital Adequacy ratio as at 31 December 2017 was 21.88% and Tier 1 ratio was 19.50% (in 2016, the Capital Adequacy ratio was 21.22% and Tier 1 ratio 18.67%) against the regulatory requirement of minimum of 12% and 8% respectively. The Group ensures adherence to CBUAE requirements by monitoring its Capital Adequacy against higher internal limits.
Each banking subsidiary is directly regulated by its local banking supervisor which sets and monitors its capital adequacy requirements. CBUAE monitors the Capital Adequacy requirements of Emirates NBD at the Group level and also separately for Emirates Islamic Bank and Dubai Bank, subsidiaries of Emirates NBD.
CAPITAL ADEQUACY (STANDARDISED APPROACH)
RISK WEIGHTED EXPOSURE
2017 2016AED 000 AED 000
Credit Risk 237,764,915 225,413,053
Market Risk 7,832,945 5,048,821
Operational Risk 26,381,543 25,706,714
Total 271,979,403 256,168,588
2017 2016
Capital
Charge AED 000
Capital Charge AED
000
Capital Requirements
Credit Risk 28,531,789 27,049,566
Market Risk 939,953 605,859
Operational Risk 3,165,785 3,084,806
Total Capital Requirements 32,637,527 30,740,231
11 12EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
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 2017 is AED 939 million (2016: AED 606 million) as detailed below:
CAPITAL REQUIREMENT FOR MARKET RISK AS PER STANDARDISED APPROACH
2017AED 000
2016AED 000
Interest rate risk 880,038 572,751
Equity position risk 2,714 11,083
Options risk 7,914 -
Foreign exchange risk 49,287 22,025
Total capital requirement 939,953 605,859
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 2017 is AED 3,166 million (2016: AED 3,085 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.
Cred
it R
isk
The
tota
l cap
ital
cha
rge
for
cred
it r
isk
as a
t 31
Dec
embe
r 20
17 is
AED
28,
532
mill
ion
(201
6: A
ED 2
7,05
0 m
illio
n).
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH
2017
2016
Gro
ss E
xpo-
sure
Risk
Wei
ghte
d A
sset
sG
ross
Exp
o-su
reRi
sk W
eigh
ted
Ass
ets
AED
000
AED
000
AED
000
AED
000
Clai
ms
on s
over
eign
s 2
17,8
72,8
39
6,1
49,0
43
192
,434
,449
5,0
14,1
93
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
1,2
66,0
96
135
,416
87
5,97
3 3
9,59
1
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,
503
- 14
,514
-
Clai
ms
on b
anks
63,
113,
156
28,
637,
975
68,
744,
027
32,
143,
281
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)
116
,715
,892
1
08,0
59,2
42
125
,836
,958
109,
372,
389
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio 3
5,78
3,85
9 2
4,82
2,43
5 3
9,00
4,71
8 2
2,05
7,27
1
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y 1
4,23
5,64
3 1
0,97
4,15
2 1
1,69
8,32
2 7
,596
,243
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e 4
2,36
3,83
6 4
2,36
3,83
6 3
1,82
8,95
9 3
1,82
8,95
9
Past
due
loan
s 3
0,08
6,33
2 6
,486
,042
2
7,21
6,00
4 5
,253
,562
Hig
her-
risk
cate
gorie
s 8
70,6
10
1,3
05,9
15
578
,184
8
67,2
77
Oth
er a
sset
s 1
5,96
8,28
0 8
,830
,861
1
5,79
2,07
1 1
1,24
0,28
7
Clai
ms
on s
ecur
itise
d as
sets
- -
--
Cred
it de
rivat
ives
(Ba
nks
selli
ng p
rote
ctio
n) -
- -
-
Tota
l53
8,29
1,04
623
7,76
4,91
7 51
4,02
4,17
922
5,41
3,05
3
13 14EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
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
2017
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
s 3
18,7
89,9
61
2,06
0,53
8 9
9,70
6,36
5 4
20,5
56,8
64
3,7
91,8
84
2,8
96,9
14
33,
970,
084
40,
658,
882
461
,215
,746
GCC
exc
ludi
ng U
AE 9
,456
,381
4,
230,
763
9,06
6,52
3 2
2,75
3,66
7 6
06,7
02
937
,374
1
,398
,810
2
,942
,886
2
5,69
6,55
3 Ar
ab L
eagu
e (e
xclu
ding
G
CC)
72,
677
3,25
3,22
3 60
5,82
5 3
,931
,725
-
182
,457
4
,070
1
86,5
27
4,1
18,2
52
Asia
1,2
30,7
94
536,
607
9,7
43,5
23
11,
510,
924
- 4
76,2
20
324
,919
8
01,1
39
12,
312,
063
Afric
a 1
0,96
6 -
226,
014
236
,980
-
- -
- 2
36,9
80
Nor
th A
mer
ica
1,20
4,64
3 2,
684,
648
4,33
1,70
7 8,
220,
998
- 82
6,57
6 6,
286
832,
862
9,05
3,86
0 So
uth
Amer
ica
- -
- -
- -
- -
- Ca
ribbe
an
-
-
-
- -
-
-
-
-
Euro
pe 4
,058
,198
1,
639,
607
12,2
56,7
94
17,
954,
599
657
,260
2
,769
,541
9
30,5
66
4,3
57,3
67
22,
311,
966
Aust
ralia
- 2
5,13
8 -
25,
138
- 5
2,36
2 6
,854
5
9,21
6 8
4,35
4 O
ther
s 1
,222
,288
1
4,07
2 3
06,4
75
1,5
42,8
35
- -
1,7
18,4
37
1,7
18,4
37
3,2
61,2
72
Tota
l33
6,04
5,90
814
,444
,596
136,
243,
226
486,
733,
730
5,05
5,84
68,
141,
444
38,3
60,0
2651
,557
,316
538,
291,
046
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.
RISK
MA
NA
GEM
ENT
OBJ
ECTI
VES
AN
D P
OLI
CIES
CRED
IT R
ISK
Plea
se re
fer N
ote
no. 4
6 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
2017
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
50,0
81,1
5214
,444
,532
83,2
82,3
2914
7,80
8,01
365
,085
7,42
5,37
322
,272
,957
29,7
63,4
1517
7,57
1,42
8
AED
285,
964,
756
6452
,960
,897
338,
925,
717
4,99
0,76
171
6,07
116
,087
,069
21,7
93,9
0136
0,71
9,61
8To
tal
336,
045,
908
14,4
44,5
96
136
,243
,226
48
6,73
3,73
0 5
,055
,846
8
,141
,444
3
8,36
0,02
6 5
1,55
7,31
6 5
38,2
91,0
46
31 D
ECEM
BER
2016
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
tse
curi
ties
AED
000
Oth
er a
s-se
tsAE
D 0
00
Tota
l fun
d- edAE
D 0
00
Com
mit
-m
ents
AED
000
OTC
der
iva-
tive
sAE
D 0
00
Oth
er
off-b
alan
ce
shee
t exp
o-su
res
AED
000
Tota
l no
n-fu
nded
AED
000
Tota
lAE
D 0
00
Fore
ign
Curr
ency
50,2
32,0
2612
,038
,099
80,7
50,7
5814
3,02
0,88
31,
029,
596
7,33
6,91
823
,490
,262
31,8
56,7
7617
4,87
7,65
9
AED
270,
190,
502
9,16
848
,713
,244
318,
912,
914
4,79
0,37
764
9,51
314
,793
,716
20,2
33,6
0633
9,14
6,52
0To
tal
320
,422
,528
1
2,04
7,26
7 1
29,4
64,0
02
461
,933
,797
5
,819
,973
7
,986
,431
3
8,28
3,97
8 5
2,09
0,38
2 5
14,0
24,1
79
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.
15 16EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
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
2017
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
Agric
ultu
re, fi
shin
g &
rela
ted
activ
ities
6,3
74
147
,004
-
153
,378
5
2,96
6 -
4,3
12,8
75
4,3
65,8
41
4,5
19,2
19
Crud
e, o
il ga
s, m
inin
g &
qu
arry
ing
589,
334
- 25
,135
61
4,46
9 24
0,83
8 -
192,
301
433,
139
1,04
7,60
8
Man
ufac
turin
g8,
500,
926
- -
8,50
0,92
6 17
8,83
1 39
,382
2,
854,
088
3,07
2,30
1 11
,573
,227
Elec
tric
ity &
wat
er43
5,37
9 -
- 43
5,37
9 -
- 36
4,40
7 36
4,40
7 79
9,78
6
Cons
truc
tion
8,89
8,94
9 -
435,
831
9,33
4,78
0 1,
587,
828
23,
594
12,2
58,3
79
13,8
69,8
01
23,
204,
581
Trad
e22
,883
,649
- -
22,8
83,6
49
343
,200
62
7,00
5 98
0,70
3 1
,950
,908
24
,834
,557
Tr
ansp
ort,
stor
age
&co
mm
unic
atio
n3,
342,
797
93,2
84
238,
010
3,6
74,0
91
38,8
14
60,
529
805
,627
9
04,9
70
4,57
9,06
1
Fina
ncia
l ins
titut
ions
and
in
vest
men
t com
pani
es 2
3,13
0,13
8 5,
347,
849
123,
380,
964
151
,858
,951
1
84,2
34
6,6
00,7
72
5,8
53,7
92
12,
638,
798
164
,497
,749
Real
est
ate
44,6
81,5
03 2
02,6
21
- 44
,884
,124
12
4,04
3 19
2,58
3 1,
581,
138
1,8
97,7
64
46,
781,
888
Serv
ices
11,1
35,4
0249
3,25
9 18
4,46
5 11
,813
,126
11
5,10
3 57
,236
1,
418,
583
1,59
0,92
2 13
,404
,048
Sove
reig
n14
0,54
5,64
64,
717,
840
2,22
0,57
1 14
7,48
4,05
7 45
,878
-
36,9
60
82,8
38
147,
566,
895
Pers
onal
60
,872
,956
- -
60,8
72,9
56
74,0
00
- 2,
097,
200
2,1
71,2
00
63,0
44,1
56
All o
ther
s4,
362,
608
3,44
2,73
9 9,
758,
250
17,5
63,5
97
2,07
0,11
1 54
0,34
3 5,
603,
973
8,21
4,42
725
,778
,024
Ad
d: G
ross
ing
up o
f int
eres
t in
sus
pens
e6,
660,
247
- -
6,6
60,2
47
- -
- -
6,6
60,2
47
Tota
l33
6,04
5,90
8 1
4,44
4,59
6 13
6,24
3,22
6 48
6,73
3,73
0 5
,055
,846
8
,141
,444
3
8,36
0,02
6 5
1,55
7,31
6 53
8,29
1,04
6
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
GEO
GRA
PHY
(con
tinu
ed)
31 D
ECEM
BER
2016
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
s 2
95,9
46,0
82
1,9
76,3
38
77,
855,
978
375
,778
,398
4
,790
,376
3
,160
,474
3
1,79
8,55
1 3
9,74
9,40
1 4
15,5
27,7
99
GCC
exc
ludi
ng U
AE 1
1,80
7,79
0 3
,166
,423
1
4,42
1,94
3 2
9,39
6,15
6 6
72,6
44
1,2
62,3
47
3,3
15,3
34
5,2
50,3
25
34,
646,
481
Arab
Lea
gue
(exc
ludi
ng G
CC)
3,9
83,2
18
3,6
19,8
80
5,6
51,5
48
13,
254,
646
30,
469
146
,515
6
63,7
95
840
,779
1
4,09
5,42
5 As
ia 3
,926
,134
1
62,7
34
13,
403,
245
17,
492,
113
94,
572
255
,600
1
,109
,824
1
,459
,996
1
8,95
2,10
9 Af
rica
159
,497
-
686
,345
8
45,8
42
- -
4,1
44
4,1
44
849
,986
N
orth
Am
eric
a 8
85,4
82
2,2
31,7
58
4,6
98,1
56
7,8
15,3
96
- 7,
526
3,2
02
10,7
28
7,8
26,1
24
Sout
h Am
eric
a-
--
--
--
--
Carib
bean
--
--
--
--
-Eu
rope
3,7
12,1
02
865
,222
1
2,68
3,93
3 1
7,26
1,25
7 2
31,9
12
3,1
44,4
58
1,3
82,2
74
4,7
58,6
44
22,
019,
901
Aust
ralia
- 2
4,91
2 6
2,04
6 8
6,95
8 -
9,5
11
6,8
54
16,
365
103
,323
O
ther
s 2
,223
-
808
3
,031
-
- -
- 3
,031
To
tal
320,
422,
528
12,0
47,2
6712
9,46
4,00
246
1,93
3,79
7 5
,819
,973
7,
986,
431
38,
283,
978
52,0
90,3
8251
4,02
4,17
9
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 PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
The
Gro
ss C
redi
t Ex
posu
res
as p
er S
tand
ardi
zed
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
2017
On
Bala
nce
Shee
tG
ross
G
utst
andi
ngAE
D 0
00
Off
-Bal
ance
Sh
eet
Net
Ex
posu
re
afte
r Cr
edit
Co
nver
sion
Fa
ctor
s (C
CF)
AED
000
Tota
l Gro
ss
Expo
sure
AED
000
Cred
it R
isk
Mit
igat
ion
(CRM
) Ex
posu
re
Befo
re C
RMAE
D 0
00CR
MAE
D 0
00Af
ter
CRM
AED
000
Risk
W
eigh
ted
Asse
tsAE
D 0
00
Clai
ms
on s
over
eign
s21
7,81
9,13
2 53
,707
21
7,87
2,83
9 21
7,87
2,83
9 -
217,
872,
839
6,14
9,04
3 Cl
aim
s on
non
-cen
tral
gov
ernm
ent p
ublic
se
ctor
ent
ities
1,14
6,94
2 11
9,15
4 1,
266,
096
1,26
6,09
6 -
1,26
6,09
6 13
5,41
6
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,5
03
- 14
,503
14
,503
-
14,5
03
-
Clai
ms
on b
anks
51,9
08,5
83
11,2
04,5
73
63,1
13,1
56
63,1
13,1
56
5,36
6,82
7 57
,746
,329
28
,637
,975
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
78,8
41,0
38
37,8
74,8
54
116,
715,
892
116,
715,
892
7,56
7,20
3 10
9,14
8,68
9 10
8,05
9,24
2
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio35
,117
,499
66
6,36
0 35
,783
,859
35
,783
,859
3,
407,
353
32,3
76,5
06
24,8
22,4
35
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y14
,235
,643
-
14,2
35,6
43
14,2
35,6
43
- 14
,235
,643
10
,974
,152
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e41
,085
,793
1,
278,
043
42,3
63,8
36
42,3
63,8
36
- 42
,363
,836
42
,363
,836
Past
due
loan
s29
,725
,707
36
0,62
5 30
,086
,332
5,
744,
083
- 5,
744,
083
6,48
6,04
2
Hig
her-
risk
cate
gorie
s87
0,61
0 -
870,
610
870,
610
- 87
0,61
0 1,
305,
915
Oth
er a
sset
s15
,968
,280
-
15,9
68,2
80
15,9
68,2
80
- 15
,968
,280
8,
830,
861
Clai
ms
on s
ecur
itise
d as
sets
--
--
--
-
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
--
--
--
-
Tota
l48
6,73
3,73
0 51
,557
,316
53
8,29
1,04
6 51
3,94
8,79
7 16
,341
,383
49
7,60
7,41
4 23
7,76
4,91
7
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
2016
Loan
s&
Isla
mic
Fi
nanc
ing
AED
000
Deb
t se
curi
ties
AED
000
Oth
er a
sset
sAE
D 0
00To
tal f
unde
dAE
D 0
00Co
mm
itmen
tsAE
D 00
0
OTC
de
riva
tive
sAE
D 0
00
Oth
er o
ff-
bala
nce
shee
t ex
posu
res
AED
000
Tota
l non
-fu
nded
AED
000
Tota
lAE
D 0
00
Agric
ultu
re, fi
shin
g &
rela
ted
activ
ities
133
,952
-
- 1
33,9
52
- -
26,
250
26,
250
160,
202
Crud
e, o
il ga
s, m
inin
g &
qu
arry
ing
450,
624
1,3
52,5
94
30,1
51
1,83
3,36
9 4
25
4,3
57
693,
399
698,
181
2,5
31,5
50
Man
ufac
turin
g8,
748,
547
- -
8,74
8,54
7 43
,026
2
3,01
5 3,
688,
710
3,75
4,75
1 12
,503
,298
Elec
tric
ity &
wat
er 3
81,5
63
546
,460
6
,248
9
34,2
71
- -
1,1
72,0
56
1,17
2,05
6 2,
106,
327
Cons
truc
tion
9,6
53,9
33
195
,290
2
27,9
55
10,0
77,1
78
1,6
20,6
91
21,
496
7,8
73,9
57
9,51
6,14
4 19
,593
,322
Trad
e 1
7,14
3,64
5 -
- 1
7,14
3,64
5 78
8,20
9 3
09,5
58
7,1
06,4
13
8,2
04,1
80
25,3
47,8
25
Tran
spor
t, st
orag
e &
com
mun
icat
ion
4,7
45,5
31
185
,476
3
06,1
38
5,2
37,1
45
147
,259
1
65,8
65
827,
916
1,1
41,0
40
6,37
8,18
5
Fina
ncia
l ins
titut
ions
and
in
vest
men
t com
pani
es 2
4,59
0,45
7 2
,517
,019
11
4,68
8,75
2 1
41,7
96,2
28
852
,738
6
,525
,070
7
,316
,116
1
4,69
3,92
4 15
6,49
0,15
2
Real
est
ate
42
,548
,945
-
293
,999
4
2,84
2,94
4 8
54,7
00
26,
943
1,
068,
006
1,9
49,6
49
44,7
92,5
93
Serv
ices
6,9
31,5
44
115
,878
4
9,22
0 7
,096
,642
5
89,0
19
54,
134
3,6
50,7
36
4,2
93,8
89
11,
390,
531
Sove
reig
n13
0,97
7,36
1 7,
122,
873
340
,123
1
38,4
40,3
57
- 3
4,25
7 6
,133
4
0,39
0 13
8,48
0,74
7
Pers
onal
65
,199
,616
-
- 65
,199
,616
16
2,92
0 53
,101
3,
411,
928
3,62
7,94
9 68
,827
,565
All o
ther
s3,
237,
886
11,6
77
13,5
21,4
16
16,7
70,9
79
760,
986
768,
635
1,44
2,35
8 2,
971,
979
19,7
42,9
58
Add:
Gro
ssin
g up
of i
nter
est
in s
uspe
nse
5,67
8,92
4 -
- 5,
678,
924
- -
- -
5,67
8,92
4
Tota
l32
0,42
2,52
8 1
2,04
7,26
7 12
9,46
4,00
2 46
1,93
3,79
7 5
,819
,973
7
,986
,431
3
8,28
3,97
8 5
2,09
0,38
2 51
4,02
4,17
9
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.
19 20EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D /
UN
RATE
D)
31 D
ECEM
BER
2017
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
ght-
ed A
sset
sAE
D 0
00
Clai
ms
on s
over
eign
s6,
927,
542
210,
945,
297
217,
872,
839
217,
872,
839
217,
872,
839
6,14
9,04
3
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
63
9,47
962
6,61
71,
266,
096
1,26
6,09
61,
266,
096
135,
416
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,
503
- 14
,503
14,5
03
14,5
03 -
Clai
ms
on b
anks
3,95
5,53
559
,157
,621
63,1
13,1
5663
,113
,156
57,7
46,3
2928
,637
,975
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
2,35
6,51
614
4,35
9,37
611
6,71
5,89
211
6,71
5,89
210
9,14
8,68
9 10
8,05
9,24
2
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio -
35,
783,
859
35,7
83,8
5935
,783
,859
32,3
76,5
0624
,822
,435
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y -
14,
235,
643
14,2
35,6
4314
,235
,643
14,2
35,6
4310
,974
,152
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e -
42,
363,
836
42,3
63,8
3642
,363
,836
42,3
63,8
3642
,363
,836
Past
due
loan
s -
30,0
86,3
3230
,086
,332
5,74
4,08
35,
744,
083
6,48
6,04
2
Hig
her-
risk
cate
gorie
s -
870,
610
870,
610
870,
610
870,
610
1,30
5,91
5
Oth
er a
sset
s-
15,9
68,2
8015
,968
,280
15,9
68,2
8015
,968
,280
8,83
0,86
1
Clai
ms
on s
ecur
itise
d as
sets
- -
- -
- -
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
- -
- -
- -
Tota
l13
,893
,575
524,
397,
471
538,
291,
046
513,
948,
797
497,
607,
414
237,
764,
917
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (c
onti
nued
)
31 D
ECEM
BER
2016
On
Bala
nce
Shee
t Gr
oss
Out
stan
ding
AED
000
Off
-Bal
ance
Sh
eet
Net
Ex
posu
re
afte
r Cr
edit
Co
nver
sion
Fa
ctor
s (C
CF)
AED
000
Tota
l Gro
ss
Expo
sure
AED
000
Cred
it R
isk
Mit
igat
ion
(CRM
) Ex
posu
re
Befo
re C
RM
AED
000
CRM
AE
D 0
00Af
ter
CRM
AE
D 0
00
Risk
W
eigh
ted
Asse
ts
AED
000
Clai
ms
on s
over
eign
s 1
92,3
94,0
71
40,
378
192
,434
,449
1
92,4
34,4
49
- 1
92,4
34,4
49
5,0
14,1
93
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
653
,613
2
22,3
60
875
,973
8
75,9
73
- 8
75,9
73
39,
591
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,
514
- 1
4,51
4 1
4,51
4 -
14,
514
-
Clai
ms
on b
anks
59,
104,
759
9,6
39,2
68
68,
744,
027
68,
744,
027
4,5
61,8
83
64,
182,
144
32,
143,
281
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)
86,
435,
383
39,
401,
575
125
,836
,958
1
25,8
36,9
58
15,
915,
401
109
,921
,557
1
09,3
72,3
89
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio 3
7,97
7,87
4 1
,026
,844
3
9,00
4,71
8 3
9,00
4,71
8 7
,728
,699
3
1,27
6,01
9 2
2,05
7,27
1
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y 1
1,69
8,32
2 -
11,
698,
322
11,
698,
322
- 1
1,69
8,32
2 7
,596
,243
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e 3
0,61
5,54
9 1
,213
,410
3
1,82
8,95
9 3
1,82
8,95
9 -
31,
828,
959
31,
828,
959
Past
due
loan
s 2
6,66
9,45
7 5
46,5
47
27,
216,
004
4,2
09,4
82
- 4
,209
,482
5
,253
,562
Hig
her-
risk
cate
gorie
s 5
78,1
84
- 5
78,1
84
578
,184
-
578
,184
8
67,2
77
Oth
er a
sset
s 1
5,79
2,07
1 -
15,7
92,0
71
15,
792,
071
- 1
5,79
2,07
1 1
1,24
0,28
7
Clai
ms
on s
ecur
itise
d as
sets
--
--
--
-
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
- -
--
--
-
Tota
l 4
61,9
33,7
97
52,
090,
382
514
,024
,179
4
91,0
17,6
57
28,
205,
983
462
,811
,674
2
25,4
13,0
53
21 22EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
EXPO
SURE
SU
BJEC
T TO
DED
UCT
ION
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D /
UN
RATE
D)
31 D
ECEM
BER
2017
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
-5,
724,
378
5,72
4,37
85,
724,
378
--
Clai
ms
on c
orpo
rate
and
Gov
ernm
ent r
elat
ed e
ntiti
es (G
RE)
- 4
1,70
3,68
3 4
1,70
3,68
3 4
1,70
3,68
3 2
8,16
2,79
5 2
8,16
2,79
5
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio-
12,
342,
703
12,
342,
703
12,
342,
703
325
,468
2
60,3
75
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
l -
59,
770,
764
59,
770,
764
59,
770,
764
28,
488,
263
28,
423,
170
GRO
SS C
RED
IT E
XPO
SURE
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D /
UN
RATE
D) (
cont
inue
d)
31 D
ECEM
BER
2016
Rate
dAE
D 0
00U
nrat
edAE
D 0
00
Tota
l Gro
ss
Expo
sure
AE
D 0
00
Expo
sure
Be
fore
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
7,11
9,72
318
5,31
4,72
619
2,43
4,44
919
2,43
4,44
919
2,43
4,44
95,
014,
193
Clai
ms
on n
on-c
entr
al g
over
nmen
t pub
lic s
ecto
r ent
ities
19
7,95
767
8,01
687
5,97
387
5,97
387
5,97
339
,591
Clai
ms
on m
ulti-
late
ral d
evel
opm
ent b
anks
14,5
14-
14,5
1414
,514
14,5
14-
Clai
ms
on b
anks
3,79
8,82
364
,945
,204
68,7
44,0
2768
,744
,027
64,1
82,1
4432
,143
,281
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)
2,76
8,87
612
3,06
8,08
212
5,83
6,95
812
5,83
6,95
810
9,92
1,55
710
9,37
2,38
9
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio-
39,0
04,7
1839
,004
,718
39,0
04,7
1831
,276
,019
22,0
57,2
71
Clai
ms
secu
red
by re
side
ntia
l pro
pert
y-
11,6
98,3
2211
,698
,322
11,6
98,3
2211
,698
,322
7,59
6,24
3
Clai
ms
secu
red
by c
omm
erci
al re
al e
stat
e-
31,8
28,9
5931
,828
,959
31,8
28,9
5931
,828
,959
31,8
28,9
59
Past
due
loan
s-
27,2
16,0
0427
,216
,004
4,20
9,48
24,
209,
482
5,25
3,56
2
Hig
her-
risk
cate
gorie
s-
578,
184
578,
184
578,
184
578,
184
867,
277
Oth
er a
sset
s5,
185
15,7
86,8
8615
,792
,071
15,7
92,0
7115
,792
,071
11,2
40,2
87
Clai
ms
on s
ecur
itise
d as
sets
--
--
--
Cred
it de
rivat
ives
(Ban
ks s
ellin
g pr
otec
tion)
--
--
--
Tota
l13
,905
,078
500,
119,
101
514,
024,
179
491,
017,
657
462,
811,
674
225,
413,
053
23 24EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
CRED
IT R
ISK
MIT
IGA
TIO
N A
S PE
R ST
AN
DA
RDIS
ED A
PPRO
ACH
201
720
16
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
538,
291,
046
278,
448,
547
514,
024,
179
276,
625,
558
Expo
sure
cov
ered
by
on-b
alan
ce s
heet
net
ting
(24,
342,
248)
(24,
342,
248)
(23,
006,
523)
(23,
006,
523)
Expo
sure
cov
ered
by
elig
ible
fina
ncia
l col
late
ral
(15,
052,
765)
(15,
052,
765)
(26,
938,
002)
(26,
938,
002)
Expo
sure
s co
vere
d by
Gua
rant
ees
(1,2
88,6
18)
(1,2
88,6
17)
(1,2
67,9
80)
(1,2
67,9
80)
Net
exp
osur
e af
ter
cred
it r
isk
mit
igat
ion
497,
607,
415
237,
764,
917
462,
811,
674
225,
413,
053
EXPO
SURE
SU
BJEC
T TO
DED
UCT
ION
AS
PER
STA
ND
ARD
ISED
APP
ROA
CH (R
ATE
D /
UN
RATE
D) (
cont
inue
d)
31 D
ECEM
BER
2016
Rate
dA
ED 0
00U
nrat
edA
ED 0
00
Tota
l Gro
ss
Expo
sure
AED
000
Expo
sure
Be
fore
CRM
AED
000
Aft
er C
RMA
ED 0
00
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
,562
,593
4
,562
,593
4
,562
,593
7
10
355
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)
- 4
3,14
3,40
9 4
3,14
3,40
9 4
3,14
3,40
9 2
7,97
6,06
3 2
7,97
6,06
3
Clai
ms
incl
uded
in th
e re
gula
tory
reta
il po
rtfo
lio -
9,2
48,0
07
9,2
48,0
07
9,2
48,0
07
771
,254
6
03,6
35
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
l-
56,
954,
009
56,
954,
009
56,
954,
009
28,
748,
027
28,
580,
053
25 26EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
IMPA
IRED
LO
AN
S BY
ECO
NO
MIC
ACT
IVIT
Y (c
onti
nued
)
31 D
ECEM
BER
2016
Ove
rdue
(Gro
ss o
f Int
eres
t in
Sus
pens
e/ P
rovi
sion
s)Pr
ovis
ions
Adj
ustm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Ass
ets
AED
000
Less
tha
n 90
day
sA
ED 0
00
90 d
ays
and
abov
eA
ED 0
00To
tal
AED
000
Spec
ific
AED
000
Gen
eral
AED
000
Wri
te-o
ffs
AED
000
Wri
te-b
acks
AED
000
Agric
ultu
re, fi
shin
g &
re
late
d ac
tiviti
es-
--
--
--
--
Crud
e, o
il ga
s, m
inin
g &
qu
arry
ing
- 4
9,11
4 4
9,11
4 3
6,07
6 -
- -
13,
038
-
Man
ufac
turin
g -
1,9
80,6
13
1,98
0,61
3 1
,533
,680
-
- 1
02,7
97
446
,933
-
Elec
tric
ity &
wat
er -
- -
- -
- -
- -
Cons
truc
tion
- 2
,570
,151
2
,570
,151
2
,151
,044
-
9,9
08
796
,680
4
19,1
07
-
Trad
e -
3,1
43,4
66
3,1
43,4
66
2,4
19,0
40
- 3
,051
6
3,85
9 7
24,4
26
- Tr
ansp
ort,
stor
age
&
com
mun
icat
ion
- 4
78,5
32
478
,532
3
68,1
64
- -
3,5
96
110
,368
-
Fina
ncia
l ins
titut
ions
- 7
,627
,487
7
,627
,487
4
,453
,116
-
84,
684
668
,942
1
,056
,659
2
,117
,712
Real
est
ate
- 5
,907
,929
5
,907
,929
3
,541
,581
-
- 8
86,4
52
1,7
73,7
61
592
,587
Serv
ices
- 1
,170
,952
1
,170
,952
8
01,9
94
- -
45,
507
131
,558
2
37,4
00
Sove
reig
n -
- -
- -
- -
- -
Pers
onal
- 3
,154
,980
3
,154
,980
1
,652
,267
- 1
,286
,616
2
97,6
12
899
,621
6
03,0
92
All o
ther
s -
586
,234
5
86,2
34
370
,637
-
532
2
05,9
94
103
,453
1
12,1
44
Tota
l-
26,
669,
458
26,
669,
458
17,
327,
599
7,0
19,6
97
1,3
84,7
91
3,0
71,4
39
5,6
78,9
24
3,6
62,9
35
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
2017
Ove
rdue
(Gro
ss o
f Int
eres
t in
Sus
pens
e / P
rovi
sion
s)Pr
ovis
ions
Adj
ustm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Ass
ets
AED
000
Less
tha
n 90
day
sA
ED 0
00
90 d
ays
and
abov
eA
ED 0
00To
tal
AED
000
Spec
ific
AED
000
Gen
eral
AED
000
Wri
te-o
ffs
AED
000
Wri
te-b
acks
AED
000
Agric
ultu
re, fi
shin
g &
re
late
d ac
tiviti
es-
--
--
--
--
Crud
e, o
il ga
s, m
inin
g &
qu
arry
ing
- 43
,095
4
3,09
5 36
,076
-
-
-
-
7,
019
Man
ufac
turin
g -
1,72
5,08
6
1,72
5,08
6 1,
266,
229
-
1,7
71
33,9
25
238,
269
220,
588
Elec
tric
ity &
wat
er -
Cons
truc
tion
- 2,
370,
404
2,
370,
404
2,31
7,71
0
-
96,
372
129,
504
596,
896
(544
,202
)
Trad
e -
3,24
4,13
5
3,24
4,13
5 2,
656,
539
-
3
2,83
8 27
,375
55
8,30
3 29
,293
Tr
ansp
ort,
stor
age
&
com
mun
icat
ion
- 1,
367,
361
1,
367,
361
1,05
7,31
3
-
561
33
,004
32
1,25
6 (1
1,20
8)
Fina
ncia
l ins
titut
ions
- 8,
158,
056
8,
158,
056
3,78
1,55
7
-
3
,672
47
,061
1,
983,
052
2,39
3,44
7
Real
est
ate
- 5,
688,
014
5,
688,
014
2,89
0,78
0
-
1
,951
64
2,88
3 1,
643,
622
1,15
3,61
2
Serv
ices
- 77
9,03
7
77
9,03
7 93
5,52
9
-
273
601
61
,132
(2
17,6
24)
Sove
reig
n -
--
--
--
-
Pers
onal
- 3,
271,
360
3,
271,
360
1,92
6,09
5
-
6
,529
18
8,15
9 88
0,68
9
464,
577
All o
ther
s -
1,18
9,15
81,
189,
158
814,
172
-1,
188,
462
674,
749
377,
028
(204
2)
Tota
l-
27,
835,
706
27,
835,
706
17,
681,
999
7,6
11,0
48
1,3
32,4
29
1,7
77,2
61
6,6
60,2
47
3,4
93,4
60
27 28EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
IMPA
IRED
LO
AN
S BY
GEO
GRA
PHY
(con
tinu
ed)
31 D
ECEM
BER
2016
Ove
rdue
(Gro
ss o
f Int
eres
t in
Sus
pens
e / P
rovi
sion
s)Pr
ovis
ions
Adj
ustm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Ass
ets
AED
000
Less
tha
n 90
day
sA
ED 0
00
90 d
ays
and
abov
eA
ED 0
00To
tal
AED
000
Spec
ific
AED
000
Gen
eral
AED
000
Wri
te-o
ffs
AED
000
Wri
te-b
acks
AED
000
Uni
ted
Arab
Em
irate
s -
24,
180,
281
24,
180,
281
15,
615,
755
- 1
,383
,700
2
,934
,656
5
,271
,554
3
,292
,972
GCC
exc
ludi
ng U
AE
- 2
,055
,611
2
,055
,611
1
,532
,551
-
828
1
20,2
36
392
,827
1
30,2
33
Arab
Lea
gue
(exc
ludi
ng
GCC
) -
366
,708
3
66,7
08
116
,445
-
263
-
362
2
49,9
01
Asia
-
37,
760
37,
760
36,
925
- -
16,
547
11,
310
(10,
475)
Afric
a -
- -
- -
- -
- -
Nor
th A
mer
ica
- -
- -
- -
- -
-
Sout
h Am
eric
a -
- -
- -
- -
- -
Carib
bean
-
- -
- -
- -
- -
Euro
pe -
29,
098
29,
098
25,
923
- -
- 2
,871
3
04
Aust
ralia
- -
- -
- -
- -
-
Oth
ers
- -
- -
- -
- -
-
Tota
l-
26,
669,
458
26,
669,
458
17,
327,
599
7,0
19,6
97
1,3
84,7
91
3,0
71,4
39
5,6
78,9
24
3,6
62,9
35
IMPA
IRED
LO
AN
S BY
GEO
GRA
PHY
31 D
ECEM
BER
2017
Ove
rdue
(Gro
ss o
f Int
eres
t in
Sus
pens
e / P
rovi
sion
s)Pr
ovis
ions
Adj
ustm
ents
Inte
rest
in
Susp
ense
AED
000
Tota
l Im
pair
ed
Ass
ets
AED
000
Less
tha
n 90
day
sA
ED 0
00
90 d
ays
and
abov
eA
ED 0
00To
tal
AED
000
Spec
ific
AED
000
Gen
eral
AED
000
Wri
te-o
ffs
AED
000
Wri
te-b
acks
AED
000
Uni
ted
Arab
Em
irate
s -
25,
755,
327
25,
755,
327
15,
870,
813
- 1
,328
,656
1
,753
,708
6
,201
,175
3
,683
,339
GCC
exc
ludi
ng U
AE
- 2
,016
,301
2
,016
,301
1
,660
,432
-
169
1
0,28
6 4
43,9
48
(88,
079)
Ar
ab L
eagu
e (e
xclu
ding
G
CC)
- 3
9,12
0 3
9,12
0 1
34,8
46
- -
1,4
49
- (9
5,72
6)
Asia
1
9,87
1 1
9,87
1 1
3,15
1 -
3,6
03
11,
786
12,
789
(6,0
69)
Afric
a -
- -
- -
- -
-
Nor
th A
mer
ica
- -
- -
- -
- -
-
Sout
h Am
eric
a -
- -
- -
- -
- -
Carib
bean
-
- -
- -
- -
- -
Euro
pe -
5,0
76
5,0
76
2,7
57
- -
31
2,3
35
(16)
Aust
ralia
- -
- -
- -
- -
-
Oth
ers
- 1
1 1
1 -
- -
- -
11
Tota
l-
27,
835,
706
27,
835,
706
17,
681,
999
7,6
11,0
48
1,3
32,4
29
1,7
77,2
61
6,6
60,2
47
3,4
93,4
60
29 30EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
RISK
MA
NA
GEM
ENT
OBJ
ECTI
VES
AN
D P
OLI
CIES
MA
RKET
RIS
K
Plea
se re
fer N
ote
no. 4
6 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, y
ear-
end
VaR
num
bers
, ove
rall
inte
rest
sen
sitiv
ity 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
2017
(a) Q
uant
itat
ive
Det
ails
of E
quit
y Po
siti
onA
ED 0
00
Type
FS C
ateg
ory
(AFS
/FVP
L)
Base
l II
Cate
gory
(B
anki
ng
book
)
Curr
ent
Year
Publ
icly
Tr
aded
Priv
atel
y H
eld
Equi
ties
780,
862
780,
862
11,3
0776
9,55
5Co
llect
ive
inve
stm
ent s
chem
es-
--
-An
y ot
her i
nves
tmen
t-
--
-To
tal
780,
862
780,
862
11,3
0776
9,55
5(b
) Rea
lised
, unr
ealis
ed &
late
nt r
eval
uati
on g
ains
/ (lo
sses
) dur
ing
the
year
AED
000
Part
icul
ars
AFS
G
ains
(Los
ses)
Real
ised
gai
ns (l
osse
s) fr
om s
ale
and
liqui
datio
ns20
6,43
6U
nrea
lised
gai
ns (l
osse
s) re
cogn
ised
in th
e ba
lanc
e sh
eet b
ut n
ot th
roug
h pr
ofit a
nd lo
ss
acco
unt
158,
477
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
ntTo
tal
364,
913
(c) I
tem
s in
(b) a
bove
incl
uded
in T
ier
I / T
ier
II Ca
pita
l
AED
000
Tier
Cap
ital
Am
ount
Am
ount
incl
uded
in T
ier I
cap
ital (
real
ised
gai
ns)
206,
436
Amou
nt in
clud
ed in
Tie
r II c
apita
l (un
real
ised
gai
ns)
71,3
14To
tal
277,
750
RECO
NCI
LIA
TIO
N O
F CH
AN
GES
IN P
ROVI
SIO
N F
OR
IMPA
IRED
LO
AN
S
2017
AED
000
2016
AED
000
Bala
nce
of p
rovi
sion
for i
mpa
ired
loan
s as
at 1
Janu
ary
24,3
47,2
9623
,239
,441
Add:
Cha
rge
for t
he y
ear
Spec
ific
prov
isio
ns
3,46
4,64
3 4
,620
,191
Gen
eral
pro
visi
ons
591,
992
955
,020
Les
s: W
rite-
off o
f im
paire
d lo
ans
(1,3
32,4
29)
(1,3
84,7
91)
Less
: Rec
over
y of
loan
s pr
evio
usly
writ
ten
off-
Less
: Writ
e ba
ck /
Reco
very
of l
oan
loss
pro
visi
ons
(1,
777,
261)
(3,0
71,4
39)
Less
: Adj
ustm
ents
of l
oan
loss
pro
visi
ons
(1
,194
)(1
1,12
6)
Bala
nce
of p
rovi
sion
for i
mpa
ired
loan
s as
at 3
1 D
ecem
ber
25,2
93,0
4724
,347
,296
31 32EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
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
2016
(a) Q
uant
itat
ive
Det
ails
of E
quit
y Po
siti
onA
ED 0
00
Type
FS C
ateg
ory
(AFS
/FVP
L)
Base
l II
Cate
gory
(B
anki
ng
book
)
Curr
ent
Year
Publ
icly
Trad
edPr
ivat
ely
Hel
dEq
uitie
s1,
033,
981
1,03
3,98
133
8,16
269
5,81
9
Colle
ctiv
e in
vest
men
t sch
emes
--
--
Any
othe
r inv
estm
ent
--
--
Tota
l1,
033,
981
1,03
3,98
133
8,16
269
5,81
9
(b) R
ealis
ed, u
nrea
lised
& la
tent
rev
alua
tion
gai
ns /
(loss
es) d
urin
g th
e ye
arA
ED 0
00
Part
icul
ars
AFS
Gai
ns (L
osse
s)
Real
ised
gai
ns (l
osse
s) fr
om s
ale
and
liqui
datio
ns21
8,71
0U
nrea
lised
gai
ns (l
osse
s) re
cogn
ised
in th
e ba
lanc
e sh
eet b
ut n
ot th
roug
h pr
ofit a
nd lo
ss
acco
unt
(259
,798
)
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
gniz
ed in
ba
lanc
e sh
eet o
f pro
fit a
nd lo
ss a
ccou
nt-
Tota
l(4
1,08
8)
(c) I
tem
s in
(b) a
bove
incl
uded
in T
ier
I / T
ier
II Ca
pita
l
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
)21
8,71
0
Amou
nt in
clud
ed in
Tie
r II c
apita
l (un
real
ised
gai
ns)
(116
,910
)
Tota
l10
1,80
0
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
2017
(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 jo
int v
entu
re17
3,13
8
Inve
stm
ent s
ecur
ities
93,7
03
Hel
d fo
r tra
ding
-
Tota
l cap
ital
req
uire
men
t26
6,84
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
11,3
07-
Unq
uote
d76
9,55
5-
Tota
l78
0,86
2-
33 34EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
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 2017 is AED 49.29 million (as at 31 December 2016 is AED 22.03 million).
Operational Risk
Please refer Note no. 46 in the annual financial statements for detailed risk management objectives and policies for Operational risk.
Liquidity Risk
Please refer Note no. 46 in the annual financial statements for detailed risk management objectives and policies for Liquidity risk.
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
2016
(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
s an
d jo
int v
entu
res
180,
796
Inve
stm
ent s
ecur
ities
124,
078
Hel
d fo
r tra
ding
-
Tota
l cap
ital
req
uire
men
t30
4,87
4
(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
d33
8,16
2-
Unq
uote
d69
5,81
9-
Tota
l1,
033,
981
-
35 36EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
THE
FOLL
OW
ING
TA
BLE
LIST
S TH
E G
ROU
P’S
EXPO
SURE
S BY
RES
IDU
AL
MA
TURI
TY: (
Cont
inue
d)
31 D
ECEM
BER
2016
Loan
s &
Is
lam
ic
Fina
ncin
gD
ebt
secu
riti
esO
ther
asse
tsTo
tal
fund
edCo
mm
it-
men
tsO
TCde
riva
tive
s
Oth
er
off-b
alan
ce
shee
tex
posu
res
Tota
l no
n-fu
nded
Tota
l
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
Less
than
3 m
onth
s 1
48,1
51,8
96
2,0
94,4
36
91,
555,
546
241
,801
,878
2
,963
,927
2
,003
,587
2
2,43
0,58
8 2
7,39
8,10
2 26
9,19
9,98
0
3 m
onth
s to
1 y
ear
23,
108,
595
2,2
63,2
48
28,
514,
590
53,
886,
433
2,8
56,0
46
1,2
61,9
70
10,
980,
859
15,
098,
875
68,
985,
308
1 ye
ar to
5 y
ears
57,
873,
660
4,9
32,8
98
2,3
21,8
24
65,
128,
382
- 3
,630
,650
4
,190
,563
7
,821
,213
7
2,94
9,59
5
Ove
r 5 y
ears
68,
281,
854
2,7
56,6
85
7,0
72,0
42
78,
110,
581
- 1
,090
,224
6
81,9
68
1,7
72,1
92
79,
882,
773
Add:
Gro
ssin
g up
of
inte
rest
in s
uspe
nse
&
prov
isio
ns 2
3,00
6,52
3 -
- 2
3,00
6,52
3 -
- -
- 2
3,00
6,52
3
Tota
l 3
20,4
22,5
28
12,
047,
267
129
,464
,002
4
61,9
33,7
97
5,8
19,9
73
7,9
86,4
31
38,
283,
978
52,
090,
382
514
,024
,179
THE
FOLL
OW
ING
TA
BLE
LIST
S TH
E G
ROU
P’S
EXPO
SURE
S BY
RES
IDU
AL
MA
TURI
TY:
31 D
ECEM
BER
2017
Loan
s &
Is
lam
ic
Fina
ncin
gD
ebt
secu
riti
esO
ther
as
sets
Tota
lfu
nded
Com
mit
-m
ents
OTC
deri
vati
ves
Oth
er
off-b
alan
ce
shee
tex
posu
res
Tota
l no
n-fu
nded
Tota
l
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
AED
000
Less
than
3 m
onth
s 15
7,66
9,02
32,
520,
259
94,0
58,5
1325
4,24
7,79
5 2
,335
,457
4
,555
,145
18
,708
,524
25,
599,
127
279
,846
,922
3 m
onth
s to
1 y
ear
27,8
41,1
583,
098,
735
31,2
63,7
9962
,203
,692
2,7
20,3
88
1,1
44,2
39
12,1
80,3
6716
,044
,994
78,
248,
686
1 ye
ar to
5 y
ears
59,9
71,9
984,
607,
229
3,88
7,16
468
,466
,391
- 1
,373
,910
6,
901,
733
8,27
5,64
3 7
6,74
2,03
4
Ove
r 5 y
ears
66,2
21,4
834,
218,
373
7,03
3,75
077
,473
,606
- 1
,068
,150
56
9,40
21,
637,
552
79,
111,
158
Add:
Gro
ssin
g up
of
inte
rest
in s
uspe
nse
&
prov
isio
ns 2
4,34
2,24
6 -
- 24
,342
,246
- -
- 24
,342
,246
Tota
l33
6,04
5,90
814
,444
,596
136,
243,
226
486,
733,
730
5,0
55,8
46
8,14
1,44
438
,360
,026
51,5
57,3
1653
8,29
1,04
6
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.
37 38EMIRATES NBD PJSC - BASEL II – PILLAR III DISCLOSURES - FOR THE YEAR ENDED 31 DECEMBER 2017
RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Reputational Risk
Please refer Note no. 46 in the annual financial statements for detailed risk management objectives and policies for reputation risk.
Regulatory / Compliance Risk
Please refer Note no. 46 in the annual financial statements for detailed risk management objectives and policies for regulatory / compliance risk.
Internal Capital Adequacy Assessment Process
Please refer Note no. 46 in the annual financial statements for detailed risk management objectives and policies for Internal Capital Adequacy Assessment Process.
Internal Audit’s role in overall risk management
Please refer Note no. 46 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. 46 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 Emirates NBD Egypt
Please refer Note no. 46 in the annual financial statements for detailed risk management objectives and policies for details on risk management framework and processes at Emirates NBD Egypt.
Top Related