Ajman Bank profit up 13%

Ajman Bank earned a profit of Dh13.3 million for the six months to June 2013 which is 13 per cent higher than the profit for the corresponding period ended on June 2012.

The bank’s revenues increased 21 per cent. Revenue improvement came from an all-round growth from the various revenue streams - about 30 per cent increase in income from fees and commissions; 19 per cent from income from Islamic financing and 24 per cent in investment income. A total operating income of Dh160.8 million as against Dh133.4 million for the period ended 30 June, 2012.

The bank's assets grew by approximately 12 per cent at the end of June 2013 compared with Dec. 2012. Total balance sheet footing which at the end of last year was Dh5.48 bn reached Dh 6.12 bn. The growth components relate to a 7 per cent growth in investments securities, about 2 per cent growth in Islamic financing and investments and substantial increase in wakala placements with banks. The total portfolio growth was 10 per cent over the period to Dh5.59 bn from Dh5.06 billion at the end of December 2012.

Customer deposits too registered about 4 per cent growth reaching 4.49bn. Deposits at year end 2012 stood at Dh4.33bn.

Mohamed Zaqout, Chief Executive Officer, Ajman Bank, said: "We have very clear priorities to drive growth and we are executing all of them. The second quarter figures reflect strong and consistent performance across varied sectors despite challenging market conditions. We maintained steady growth in many critical areas including assets, investment securities, Islamic financing and investments as well as wakala placements with banks that resulted in healthy portfolio growth for Ajman Bank.

"This was possible due to many key actions taken over the recent months such as strengthening the quality and diversity of earnings and improving our operating systems, cost structure and operating margins. A lot of work still lies ahead but we are making steady progress."

Depositors’ share of profit increased 63 per cent to Dh40.8m compared with Dh25m at June 30th of last year.

Total staff and administrative expenses were well managed within a nominal increase of 3.9 per cent as compared to the six month period ended June 30th 2012.

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