Ajman Bank's HY net profit soars by 250%

Ajman Bank reported a Net Profit of Dhs11.7m for the first six months of this year, representing a robust increase of 250% from the same period in 2011. Profit for the second quarter of 2012 was of Dhs7.2m up from 0.5 million for the second quarter of last year. The second quarter profit also rose by 60% compared to the profit of Dhs4.5m recorded during the first 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 continues to gain momentum, establishing a solid market position among leading banks in the UAE, and setting a new benchmark to consistently gaining and growing market share despite existing challenges. With currently more favorable market conditions, we remain confident that the Bank is strongly positioned for continued sustainable growth."

Mohamed Amiri, Acting Chief Executive Officer, Ajman Bank, said: "Ajman Bank's half year results demonstrate the Bank's strength and resilience. The strong growth in profit is a result of our strategic focus on core businesses and a prudent approach to financing, along with an emphasis on diversifying our revenue streams. The outlook for our balance sheet of 2012 looks very positive." He also added: "Looking ahead, we will continue to look for new business opportunities to meet the expectations of our customers and create value for our shareholders."

Ajman Bank reported strong revenue growth with the Bank's Net Operating Income for the six-month period amounting to Dhs108m, an increase of 38% compared to Dhs78m achieved at the end of the corresponding period of 2011.

The Bank's achieved profitability was partly due to a significant growth in Assets, which stood at Dhs4.4bn by end of June 2012, an increase of 10% compared to Dhs4bn at the end of December 2011. Investment in Islamic financing increased by 6% to Dhs3.1bn compared with Dhs2.9bn at the end of December 2011.

Ajman Bank was again successful in raising medium-term funding, recording an increase of 27%, with Customer Deposits reaching Dhs3.3bn by end June 2012 against Dhs2.6bn in December 2011. Depositors Share of Profit for the first six months of 2012 amounted to Dhs25m, compared to Dhs38m for the corresponding period of 2011, cushioning the pressure on margins from competitive financing profit rates.

Mohamed Amiri commented on the results further, saying: "Our profitable outlook has always been coupled with an effective risk management policy, which has been a vital component of our Bank's overall strategy and has allowed us to both maintain consistency in our business model and support sustainable growth."

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 first quarter of the current year with a 154% increase in net profit recorded by the end of March 2012, compared to the same period in 2011.