Ajman Bank’s nine-month net income rises 39%

The rise in net income was supported by a strong growth in assets

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Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, chaired the bank’s board meeting on Thursday. The meeting, which was held at the Ajman Ruler’s Court, was attended by the members of the board and Mustafa Mohammed Saeed Al Khalfawi, the CEO of the bank. — Supplied photo

Published: Thu 9 Nov 2023, 5:21 PM

Ajman Bank on Thursday reported a nine-month net income of Dh615 million, an increase of 39 per cent over the same period last year.

The rise in net income was supported by a strong growth in assets, reaching Dh25.2 billion, an increase of 23 per cent compared to the same period of the previous year, in addition to the bank’s efforts in significantly improving liquidity levels and capital adequacy.

This performance is set against a backdrop of a situation which necessitated substantial provisioning. Consequently, the bank reported a net loss of Dh87.3 million compared to a net profit of Dh112.6 million during the same period in 2022. These provisions, while impacting short-term profitability, have strategically positioned Ajman Bank for sustained growth and long-term success.

Al Khalfawi, commented: “Ajman bank stands on robust fundamentals and steady lines of income generation. Our steadfast commitment to continuous cost rationalisation and strategic investment in digital transformation is setting the pace for our ambitious vision for customer service excellence and operational resilience. To make our products and services more accessible we are expanding our consumer and wholesale banking sectors and broadening our reach with more physical and digital branches. Looking ahead, we foresee a strong trajectory of profitability, fostering a steady dividend distribution to our shareholders in the coming years. The losses we incurred this year stem from a one-off transaction which we have learned valuable lessons from, further sharpening our strategic acumen.”

Al Khalfawi further emphasised: “The banking environment in the UAE continues to flourish thanks to the solid foundations it is built upon and is strengthened by the economic growth it enjoys and its flexibility in facing global challenges.”

The CEO of the bank pointed out that one of the most prominent strengths that Ajman Bank possesses is the status and strength of its shareholders, where the Government of Ajman owns the largest share of its stock, making it play a fundamental role in shaping the banking scene in the United Arab Emirates and it is always ready to fully benefit from the opportunities provided by the local market. Furthermore, in light of the accelerated changes in regulations and regulatory legislation, we also focus on maintaining the highest standards of compliance to support the overall national direction.

Furthermore, Ajman Bank’s liquidity remains resilient, with an advances to stable resources ratio of 78.86 per cent and an eligible liquid asset ratio of 19.22 per cent, both well above the regulatory requirement, underscoring the bank’s capacity to withstand financial fluctuations and its commitment to financial prudence.