Ajman Bank posts Dh13.7m profit

Ajman Bank declared today a profit of Dh13.7 million for the third quarter ended 30th September 2013. Overall the balance sheet grew by 23 per cent compared with December 2012 with total assets at Dh6.7 bn.

Asset growth primarily came from an increase of 26 per cent in the total Islamic financing and investment portfolio - the portfolio comprising of Dh5.1b Islamic financing and Dh676m of wakala placements with banks and financial institutions. Islamic financing by itself grew by 13 per cent from Dh4.5bn to Dh5.1bn. Investment securities comprising mainly of Sukuk investments grew by 8 per cent compared with the year-end level of 2012.

On the liabilities side customer deposits reached Dh4.9bn compared with Dh4.3bn at December 2012 a growth of 14 per cent and a robust increase of about Dh590m in placement by other banks.

Seifeldin Abdul Kareem, Acting CEO of Ajman Bank, said: "This quarter we generated strong momentum with impressive growth in assets that was primarily driven by Islamic financing and investment. These earnings highlight the strength of Ajman Bank and our varied portfolios. Looking ahead we see positive trends emerging from our strategic actions. Our key priorities remain unchanged as we continue to make excellent progress in integrating our businesses while expanding our reach in the market for sustainable growth".

The asset growth had its corresponding increase in income from Islamic financing which was Dh186 m as against Dh157m for the corresponding nine months of 2012, a growth of 19 per cent. Whereas investment income saw a decrease of 13 per cent, fee and commission income registered a 20 per cent growth as compared to the corresponding nine months of previous year. Depositors share of profit rose 45 per cent to Dh61m compared with Dh42m at September 30, 2012.

Net operating income at Dh180m was 7 per cent higher than that at September 30, 2012.

Expense before depreciation for the nine months compared to Sept 2012 grew by 8 per cent; 13 per cent increase in staff costs offset by a 5 per cent decrease in general and administrative expenses. However, the provision charge for impairment was significantly higher compared with last year. As a result net profit of Dh13.7 was lower than that of the corresponding period last year (Dh25.2m).