Ajman Bank's Profits Soar to Record AED 440 Million, a 213% Increase

His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of the Executive Council led the latest Ajman Bank Board of Directors meeting. The session 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.

Key Discussions and Decisions

Held at the bank’s headquarters, the meeting focused on critical financial and administrative matters. Board members reviewed business performance and made key decisions to drive future growth.

Record-Breaking Financial Performance

Ajman Bank achieved its highest-ever annual Profit Before Tax of AED 440 million, marking an impressive 213% growth compared to a net loss of AED 390 million in 2023. This achievement was fuelled by a total operating income of AED 1.5 billion and a net operating income of AED 736 million. The bank also reported a significant improvement in key profitability indicators, with a Return on Shareholder Equity of 12.9% (up by 2,745 basis points) and a Return on Assets of 1.8% (up by 332 basis points). As part of its commitment to sustainable growth, the board proposed a 7.25% dividend distribution, subject to shareholder approval at the upcoming General Assembly meeting.

Strengthened Financial Position and Asset Quality

Ajman Bank’s strong performance was supported by a well-optimized balance sheet, with total assets reaching AED 23 billion, customer deposits standing at AED 19 billion, and total equity amounting to AED 3.1 billion. The bank made significant strides in improving asset quality, as evidenced by a reduction in the Non-Performing Loan (NPL) ratio from 13.8% to 9.9%. This was largely due to the successful resolution of 31% of non-performing exposures, which also enabled the recovery of 19.6% of specific provisions. The Expected Credit Loss (ECL) coverage ratio doubled from 1.0% to 2.1%, demonstrating the bank’s proactive approach to risk management. Additionally, overall provision coverage improved by 22%, reinforcing the bank’s financial resilience.

Portfolio Diversification and Capital Strength

Ajman Bank continued to diversify its asset portfolio, reducing risk-based real estate exposure by 7.3% while increasing investments in high-quality assets across various sectors. The bank’s capital adequacy ratio rose to 19.1% (up by 348 basis points), with the Tier 1 Capital Ratio reaching 18.0%, both exceeding regulatory requirements. Its liquidity position remained robust, with an Advance to Stable Resources Ratio of 76.3% and an Eligible Liquid Asset Ratio of 17.1%, providing a solid foundation for sustained growth.

His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, Chairman of Ajman Bank, 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.”

Mr. 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 specialization, along with our unwavering commitment to innovation and customer-centric solutions, which helped us maximizing our efficiency and decreasing general and administrative expenses by 5%. 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 prioritize sustainable growth, driven by advanced financial services that meet the evolving needs of our customers and facing the banking challenges regionally and globally.”

Operational Efficiency and Strategic Investments

Despite ongoing transformation initiatives and increased technology investments in 2024, Ajman Bank successfully reduced general and administrative expenses by 5% compared to the previous year. This reflects the bank’s commitment to operational efficiency while maintaining a focus on digital innovation.

Future Outlook and Growth Prospects

With a strong financial position, a well-executed transformation strategy, and a resilient UAE economy, Ajman Bank is well-positioned to sustain its growth momentum. The bank remains committed to delivering consistent profitability and long-term value for its shareholders in FY 2024 and beyond.