Ajman Bank posts record annual profits of Dhs440 million, up 213%

Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Executive Council, and Chairman of the Board of Directors of Ajman Bank, presided over the Ajman Bank Board of Directors meeting.

The meeting was attended by Sheikh Rashid Bin Humaid Al Nuaimi, Chairman of the Municipality and Planning Department in Ajman and Vice Chairman of the Board of Directors of Ajman Bank.

During the meeting held at the bank’s headquarters, the board discussed several financial and administrative matters, reviewed the business, and issued decisions accordingly.

Ajman Bank delivers highest annual “Profit before Tax” of Dhs440 million in its history with a growth of 213 per cent compared to net loss of Dhs390 million in 2023.

This record-breaking performance is delivered through; total operating income of Dhs1.5 billion and net operating income of Dhs736 million.

In 2024, Ajman Bank reported the Return on shareholder Equity at 12.9 per cent (up by 2745 bps) and Return on Asset at 1.8 per cent (up by 332 bps). As part of its commitment to sustainable dividend distributions, the Bank’s board of directors proposed to distribute 7.25 per cent, subject to shareholder approval at the upcoming General Assembly meetings.

The strong results are supported by a healthy and optimised balance sheet with Total Assets of Dhs23 billion, Customer deposits of Dhs19 billion and Dhs3.1 billion of Equity. Capital position and Asset quality continue to show extremely strong progress from the previous year proven by major improvement of key ratios: NPL ratio improved from 13.8 per cent to 9.9 per cent largely due to successful resolution of 31 per cent of the nonperforming exposure which also positively helped the bank recover 19.6 per cent of specific provisions, ECL coverage ratio doubled from 1.0 per cent to 2.1 per cent as the bank increased its reserves to strengthen its position well above the industry average, overall provision coverage also improved drastically by 22 per cent.

The bank continued to diversify its portfolio bringing the risk based real estate concentration down by 7.3 per cent, while increasing exposure to high quality assets in various sectors.

Sheikh Ammar said, “These record-breaking financial results are a testament to the strength of Ajman Bank’s strategic vision and its commitment to delivering sustainable value for its shareholders.”

“Ajman Bank continues to play a pivotal role in supporting the growth of the UAE’s economy, and its remarkable turnaround underscores our resilience and ability to adapt in an ever-changing financial landscape.”

“I would like to express my deepest gratitude to the Board of Directors, senior management, and all our employees for their dedication and exceptional performance which have been instrumental in driving our success.”

Mustafa Al Khalfawi, CEO of Ajman Bank, stated, “Our robust performance in 2024 to enhance our value and positive returns of our shareholders, expand our customer base and invest in our talents where it reflects the success of our transformation strategy, driven by speed, service, and specialisation, along with our unwavering commitment to innovation and customer-centric solutions, which helped us maximising our efficiency and decreasing general and administrative expenses by 5 per cent.

By focusing on remediating distressed assets, we have achieved strong recoveries, further strengthening our financial position.

This success would not have been possible without the dedication and hard work of our entire team, whose efforts continue to drive our achievements.

As we move forward, we remain committed to building long-term value for our shareholders, while reinforcing our position as a key player in the UAE’s Islamic banking sector. Our strategic initiatives will continue to prioritise sustainable growth, driven by advanced financial services that meet the evolving needs of our customers and facing the banking challenges regionally and globally.”

Following on from its strong performance Ajman Bank’s Capital adequacy ratio increased to 19.1 per cent (up by 348 bps) and Tier 1 Capital Ratio increased to 18.0 per cent (up by 348 bps), and which remain well above regulatory requirements.

Advance to stable resources ratio of 76.3 per cent, and eligible liquid asset ratio of 17.1 per cent, underline its solid liquidity and along with the capital position provide a strong foundation for continued growth.

Ajman Bank managed to decrease its general and administrative expenses by 5 per cent compared to last year despite its transformation activities and focus on technology investments initiated in 2024.