Ajman Bank announced today net profit of Dhs4.5m for the first quarter of this year, representing a remarkable increase of 154 per cent from the same period in 2011.
Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, said: "The outstanding results Ajman Bank has achieved during challenging times for the global economy demonstrate our clear vision and strategy and the efficiency of our business model. Risk management is embedded at the centre of our business strategy and it has enabled the Bank to position itself appropriately for any upcoming challenges. As the economic recovery in the UAE banking market gathers momentum in 2012 and beyond, we continue to maintain a favorable and solid position against growth expectations in the years to come."
Mohamed Amiri, Acting Chief Executive Officer, Ajman Bank, said: "Ajman Bank's first quarter results are a testimony of the consistent positive performance that we have been able to achieve. With a deep understanding of the domestic market financial needs, we are very well placed to support both our individuals and commercial customers." He also added: "Our objective is to build, maintain, and grow a stable Islamic banking franchise with a strategic focus on core businesses and a prudent approach to financing, to generate acceptable returns to our shareholders over the longer term".
The Bank's achieved profitability was partly due to a significant growth in assets, which stood at Dhs4.5bn by end of March 2012, an increase of 12 per cent compared to Dhs4bn at the end of December 2011.
The Bank was successful in raising medium-term funding, recording an increase of 12.6 per cent, with customer deposits reaching Dhs3bn by end March 2012 against Dhs2.6bn in December 2011.
Depositors share of profit amounted to Dhs11.4m by end of March 2012, compared to Dhs20.3m in the corresponding quarter of 2011.
Ajman Bank reported strong revenue growth with total income amounting to Dhs63.5m at the end of March 2012, representing an increase of 28 per cent compared to Dhs49.6m achieved at the end of the same period last year. Income growth was fuelled by 19.4 per cent increase in income generated by Islamic financing, 66.3 per cent increase of income from investment securities, and 75.6 per cent increase in fees, commissions, and other income.
As of 31 March 2012, Ajman Bank's net income grew by 78 per cent to reach Dhs52.1m compared to Dhs29.3m for the corresponding three-month period in 2011.
Mohamed Amiri said: "The increase in total income and net income is a reflection of the Bank's success managing the financing yields and margins. In spite of the pressure on margins on a macro level, the Bank was able to improve its margins, while maintaining its focus on Asset quality."
Provisions for impairment in financing and investment were higher by 119.2 per cent compared to the first quarter of 2011.
Charges were of Dhs6.5m, out of which 50.8 per cent or Dhs3.3m were taken on account of the general provisions mandated by the Central Bank of the UAE.