Thursday, 5 March 2009

ENBD to convert Dh12.6bn ministry deposits to equity

Emirates NBD, the largest bank in the UAE in terms of assets, equity and profit, has initiated moves to expand its equity base by about 50 per cent, thus raising it from the present Dh25.761 billion to Dh38.361bn.

The bank has already taken a decision to seek shareholders' permission to convert the Dh12.6bn deposits it received from the Ministry of Finance as part of the Dh50bn liquidity injection programme by the ministry recently, to Tier 2 capital of the bank.

All local banks have received three to five years' deposits from this pool on a pro rata basis with respect to the size of their asset book. It is quite evident that Emirates NBD, that controls the largest asset base with a size of Dh282.413bn, has bagged the biggest chunk of this deposit pool, at about 25 per cent, which works out to Dh12.6bn.

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