EMIRATES NBD BANK PJSC BASEL II – PILLAR III ......5 EMIRATES NBD PJSC - BASEL II – PILLAR III...

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.


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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.


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.

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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.


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

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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


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.

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Clai

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Clai

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Clai

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Clai

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ACT

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)

31 D

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11,6

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Clai

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63

9,47

962

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135,

416

Clai

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14,

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3,95

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2,35

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6,71

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9,14

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Clai

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35,7

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side

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14,

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42,

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Past

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)

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31 D

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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


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-


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

-


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.


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.

EMIRATES NBD BANK PJSC BASEL II – PILLAR III ......5 EMIRATES NBD PJSC - BASEL II – PILLAR III...

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Transcript of EMIRATES NBD BANK PJSC BASEL II – PILLAR III ......5 EMIRATES NBD PJSC - BASEL II – PILLAR III...