Ajman Bank has reported an all-time high quarterly profit in Q1 2024 of AED107.4 million ($29.24 million), a 139% surge on Q1 2023. 

 

This is on the back of a 7.0% increase in total operating income to AED400.3 million as compared to AED374.0 million in corresponding period of 2023, and net operating income of AED194.8 million. 

 

Return on shareholder Equity (annualised) and Return on Asset (annualised) have doubled in Q1 2024 as compared to corresponding period of 2023 – respectively to 15.5% (up by 7.9%) and 1.9% (up by 1.0%).

 

Transformation agenda

Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, Chairman of Ajman Bank, said: “Our strong financial performance in the first quarter of 2024 is a testament to the success of our transformation agenda committing to our shareholders, investors and clients enhancing our operational excellence. We have made significant progress, which underscores our strong market position. I extend my deepest gratitude to our team, whose dedication and hard work have been integral to our success.”

 

Mustafa Al Khalfawi, CEO of Ajman Bank, stated: “We have made significant progress, which underscores our strong market position and the substantial gains in shareholder equity and asset returns. Our first-quarter results are a clear reflection of our transformative journey, which has strategically propelled our expansion and diversified our business profile. 

 

“We’ve focused on enhancing the continued value to our shareholders and supporting the economic landscape of the UAE. In addition to stringent cost containment and operational efficiencies within a resilient framework, emphasising digital innovation and customer service excellence. Our rigorous approach to risk management and our commitment to addressing regulatory challenges have been crucial. Moreover, we are enhancing our leadership team with strategic talent to ensure that Ajman Bank is well-equipped to navigate future challenges and opportunities in the market.

 

Healthy balance sheet

The strong results are supported by a healthy balance sheet with total assets of AED23.1 billion and AED2.8 billion of equity. Ajman Bank’s Capital adequacy ratio of 16.6% (up by 1.4%) and a Tier 1 Capital adequacy of 15.5% (up by 1.4%) remain well above regulatory requirements. Customer deposits of AED19.3 billion, an advance to stable resources ratio of 76.3%, and an eligible liquid asset ratio of 21.0%, underline its solid liquidity and along with the capital position provide a strong foundation for continued growth.

 

The strong financial performance was thanks to the continued focus on expanding the customer base, enhancing the credit quality, risk management and focus on recoveries. The bank opened 2,195 new accounts, 26% of them opened through digital channels. The bank also launched ‘Ajman Connect’ the new digital application with continued focus on digitising and streamlining its end-to-end processes.--TradeArabia News Service