Ajman Bank posts record growth of 382% in 2012 net profit

Ajman Bank reported a Net Profit of Dhs33.5m for 2012, representing a robust increase of 382% from the net profit of Dhs6.9m achieved in the year ended 31 Dec 2011. The income was mainly generated through corporate banking, SME's, and treasury operations.

His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, commented on the results, saying: "Despite global economic challenges, the UAE economy has continued to grow with a stable outlook. Ajman Bank has again been successful in establishing its market position, delivering record growth for the year and looking to capture new opportunities for diversifying revenue streams. The Bank remains well capitalized to target growth sectors in the year ahead and is well positioned to achieve sustainability and deliver ongoing value to its shareholders."

Mohamed Amiri, Acting Chief Executive Officer, Ajman Bank, said: "Our outstanding financial performance throughout the year reflects strong earnings in financing, operating income, and profitability and is testament of the Bank's robust position to maintain and grow market share."

He also added: "Building on our achievements in 2012, we will continue to launch new initiatives to improve earnings and develop core income across different business sectors in 2013, while adopting the latest technologies and actively investing to improve our customer value proposition to keep Ajman Bank at the forefront of the Islamic banking industry."

The Bank recorded a significant growth in business Assets. Total balance sheet size grew to Dhs5.48bn at the end of 2012, recording a 37% increase from Dhs3.99bn at the end of December 2011. Islamic banking products increased by 54% to Dhs4.53bn compared to Dhs2.94bn in 2011. The bank's investment in Shariah compatible securities including Sukuks rose by 11.7% to Dhs431m from Dhs385m in 2011.

Ajman Bank was again successful in raising medium-term funding, highlighting the mounting confidence that the Bank has instilled and reinforced among its growing customer base. Customer Deposits recorded an increase of 65% reaching Dhs4.3bn by the end of 2012 against Dhs2.6bn in December 2011.

The Bank reported strong revenue growth with its Gross Income for the year amounting to Dhs291m - an increase of 18% compared to Dhs246.2m achieved at the end of 2011. Asset growth was mirrored by the relative income growth from the associated class of assets and was mainly due to an increase of 10.1% in income from Islamic banking products, 38.2% in investment income, and of 69% from fees and commissions. Depositors' share of profit was of Dhs63.7m against Dhs66.2m in 2011, a year to year cost of funds reduction of 3.8%.

In 2012, Ajman Bank upgraded its internet banking platform and acquired new systems in the area of risk management with an objective to strengthen the bank's infrastructure and capacity to handle increasing volumes of business and sustain customer confidence.

Ajman Bank started its operations in 2009. It now operates with 11 branches spread across the Emirates. In a challenging financial environment, Ajman Bank maintained earnings momentum recording a breakthrough performance for the third quarter of 2012, with a 623% increase in net profit recorded by the end of September 2012, compared to the same period in 2011.