The losses of Ajman Bank, the newest Islamic bank in the country, increased nearly 20 per cent in the first quarter of 2010 to Dh13.92 million against Dh11.62m losses for the corresponding period last year.
According to the bank's financials, the bank has distributed Dh3.824m to its depositors as their share of profit. Though the bank made a net income before expenditure of Dh20.94m for the first quarter ending March 31, 2010, staff costs alone were more than that at Dh22.74m, which was about Dh7m more than the figures in the same period last year.
While salaries and allowances were Dh17.89m compared with Dh13.04m for the same period last year, the bank has provided an amount of Dh2.22m as bonus for staff. The financing to related parties during the period stands at Dh169.45m.
Though Ajman Bank got a licence to operate its head office on June 14, 2008, from the UAE Central Bank, it could start its branch operations only on December 22, 2008 after getting the branch licence on December 1.
The bank has stated that it has started incurring pre-operating expenses from January 7, 2007. Out of the Dh1.868 billion investments the bank has made in Islamic finance instruments, more than Dh950m has been kept with banks as Wakala deposits.
Total assets of the bank as at March 31, 2010, stood at Dh2.169bn whereas the total shareholders equity is to the tune of Dh989.14m, marginally down from Dh1.003bn at the end of 2009.