Ajman Bank maintains strong growth momentum; net profit for first nine months soars by 623%

Ajman Bank reported a Net Profit of Dhs25.2m for the first nine months of this year, representing a robust increase of 623% from the same period in 2011. Profit for the third quarter of 2012 was of Dhs13.5m up by 350% from Dhs3m for the third quarter of last year. The third quarter profit also rose by 87% compared to the profit of Dhs7.2m recorded during the second quarter of 2012.

His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, commented on the results, saying, "Ajman Bank's solid financial performance during the first half of 2012 and throughout the third quarter is a reflection of the UAE's growing economy and of our consistent and balanced business strategy. The Bank has seen a significant increase in its market share. With tremendous growth opportunities yet to be fully tapped, Ajman Bank is poised for major growth in the coming years and therefore it is essential to ensure that strong foundations are in place to support this growth, overcome global market challenges, and achieve sustainable profitability."

Mohamed Amiri, Acting Chief Executive Officer, Ajman Bank, said, "These results represent a very positive outlook for the year. Our record of consistent delivery is testament to the resilience of the Bank's business model. We are proud to see that our customers are increasingly satisfied with our services."

He also added, "Having launched initiatives to improve earnings, we continue to adopt the latest technologies and are actively investing to improve our customer value proposition to keep Ajman Bank at the forefront of the Islamic retail banking industry, with a dynamic customer-centric approach meant to answer our growing customer base requirements, while providing pioneering products, ongoing rewards, and a gratifying banking experience."

As a result of various strategic initiatives undertaken during the first 9 months of 2012, Ajman Bank reported strong revenue growth with the Bank's Net Operating Income for the nine-month period amounting to Dhs169m, an increase of 33% compared to Dhs126m achieved at the end of the corresponding period of 2011. One of the most notable areas of income growth during Q3 2012 was the increased income from Islamic financing, which stood at Dhs157m with a 9% growth compared to Dhs143m at the end of the third quarter of 2011. Income from investment securities rose by 31% and income from fees and commission grew by 79% compared to September 2011.

Total balance sheet size grew to Dhs5.2bn at the end of September 2012, recording over 30% increase from the total asset size of Dhs3.9bn at the end of December 2011.

The Bank's achieved profitability was partly due to a significant growth in Assets, which has mainly been achieved due to increased corporate and syndicated facilities. Investment in Islamic financing recorded substantial growth by 40.4% to Dhs4.13bn compared to Dhs2.94bn at the end of December 2011. Investment securities comprising a major portfolio of sukuk investments stood at Dhs388m recording a marginal increase from Dhs386m as at December 2011.

Ajman Bank was again successful in raising medium-term funding, recording an increase of 41% with Customer Deposits reaching Dhs3.7bn by end of September 2012 against Dhs2.62bn in December 2011.

In early June this year, Ajman Bank was awarded the title of 'Fastest Growing Bank' in the UAE on the much coveted Banker Middle East Industry Awards 2012. The award was based on the quantitative analysis of 14 key measures such as assets, liabilities, total income, net attributable profit and return on assets, collating data on real size, real growth, and percentage growth to identify the region's leading financial institutions.

Ajman Bank started its operations in 2009. It now operates with 12 branches spread across the Emirates. In a challenging financial environment, Ajman Bank maintained earnings momentum recording a breakthrough performance for the second quarter of the current year with a 250% increase in net profit recorded by the end of June 2012, compared to the same period in 2011.