Ajman Bank on Monday announced that it recorded its highest-ever profit before tax of Dh313 million for the first nine months of 2024, a rise of 458 per cent compared to net loss of Dh87 million for the same period in 2023.
The turnaround came on the back of a nine per cent increase in total operating income to Dh1.2 billion (vs Dh1.1 billion in the corresponding period of 2023), and net operating income of Dh616 million. For the first nine months of 2024, the return on shareholder equity (annualised) and return on asset (annualised) were at 12.8 per cent (up by 1,669 bps) and 1.6 per cent (up by 205 bps) respectively.
The results are supported by a healthy balance sheet with total assets of Dh24.4 billion, customer deposits of Dh20.3 billion and Dh3.0 billion of equity. “Capital position and asset quality continue to show strong improvement from the previous year as well as on a quarter-by-quarter basis,” the bank said in a statement.
Capital adequacy ratio increased to 19.5 per cent (up by 389 bps) and Tier 1 capital ratio increased to 18.4 per cent (up by 389 bps), and which remain well above regulatory requirements. Advance to stable resources ratio of 75.6 per cent, and eligible liquid asset ratio of 24.2 per cent, underline its solid liquidity and along with the capital position provide a strong foundation for continued growth. Ajman Bank’s non-performing financing ratio improved to 10.6 per cent in Q3 2024 (from 13.8 per cent 2023 year-end), supported by remediation of over 28 per cent of non-performing exposure.
Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, Chairman of Ajman Bank, said: “Ajman Bank’s remarkable Q3 performance is testament to the success of our strategic initiatives and the resilience of the UAE’s economic landscape. Our continued growth reflects our commitment to fostering economic development in Ajman and across the UAE, while maintaining our dedication to serving stakeholders with integrity and excellence.”
Mustafa Al Khalfawi, CEO of Ajman Bank, stated: “Our performance in Q3 2024 reflects Ajman Bank’s disciplined approach to growth, operational efficiency, and value creation. The consistent rise in operating income, profitability, and asset quality as well as reducing operating expenses by 6 per cent is a direct result of our focus on Speed, Service, and Specialization, along with our unwavering commitment to innovation and customer-centric solutions, and focusing on remediating the distressed assets, resulting in strong recoveries. This success would not have been possible without the dedication and hard work of our entire team, whose efforts continue to drive our achievements. As we move forward, we remain committed to building long-term value for our shareholders, while reinforcing our position as a key player in the UAE’s Islamic banking sector. Our strategic initiatives will continue to prioritize sustainable growth, driven by advanced financial services that meet the evolving needs of our customers.”
Source: www.khaleejtimes.com