Ajman Bank reports 75% increase in 2011 net profit

Ajman Bank reported a positive net profit of Dhs7m for 2011, a year-on-year increase of 75% compared to the Dhs4m profit reported in 2010.

The Bank also witnessed strong growth in income from its core activities in 2011, with total income reaching Dhs246.2m compared to Dhs194.4m as at the end of 2010, an increase of 27%. The growth in total income was fuelled by an increase of approximately 73% in income from Islamic financing and a doubling of income from investment securities. The bank's net income for 2011 was Dhs179.9m compared with Dhs157m in 2010, an increase of 14.5%.

As of December 31, 2011, customer deposits stood at Dhs2.6bn compared to Dhs2bn at the end of the same period in 2010, representing an increase of 30%. Depositors' share of profit was Dhs66.2m, an increase of 77% compared with Dhs37.3m in 2010.

Ajman Bank's total assets as of December 31, 2011, stood at Dhs4bn, an increase of 24% compared to Dhs3.2bn at the end of the same period in 2010.

"Ajman Bank's sustained profitability after just three years of operations is testament to strength of the Bank's business model and efficient operations," said His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank. "The Bank's performance in 2011 is notable for witnessing customer deposits increase by almost a third. With our solid funding base and profitability, Ajman Bank is superbly placed to support the long-term economic development of the Emirate of Ajman and the wider UAE."

Mohamed Amiri, Acting CEO, Ajman Bank, commented on the results saying: "Through a commitment to product innovation and service excellence, Ajman Bank's growth continues unabated. Despite challenging market conditions, we have been able to increase income and improve our margins while at the same time maintaining a clear focus on the quality of our underlying assets. We look forward to maintaining our positive momentum throughout 2012 and beyond."

Ajman Bank continued with its conservative approach to provisioning in 2011, with Dhs15.9m set aside for impairments in financing and investment, of which 43% was due to general provisions mandated by the Central Bank of the UAE.