Ajman Bank Achieves Its Highest Annual Profits In History At Dh440 Million, With A Growth Of 213%

The strong results were supported by a healthy and optimised balance sheet with total assets of Dh23 billion, customer deposits of Dh19 billion and Dh3.1 billion of equity. Capital position and asset quality continue to show strong progress from the previous year, with major improvement of key ratios. The non-performing loan (NPL) ratio improved from 13.8 per cent to 9.9 per cent largely due to successful resolution of 31 per cent of the nonperforming exposure, which also positively helped the bank recover 19.6 per cent of specific provisions, expected credit loss (ECL) coverage ratio doubled from 1.0 per cent to 2.1 per cent as the bank increased its reserves to strengthen its position well above the industry average. Overall provision coverage also improved by 22 per cent. The bank continued to diversify its portfolio bringing the risk based real estate concentration down by 7.3 per cent, while increasing exposure to high quality assets in various sectors.

Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and 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.”

Mustafa Al Khalfawi, CEO of Ajman Bank, said:“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 specialisation, along with our unwavering commitment to innovation and customer-centric solutions, which helped us maximising our efficiency and decreasing general and administrative expenses by 5 per cent. 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 prioritise sustainable growth, driven by advanced financial services that meet the evolving needs of our customers and facing the banking challenges regionally and globally.”

Ajman Bank's Capital adequacy ratio increased to 19.1 per cent (up by 348 bps) and Tier 1 Capital Ratio increased to 18.0 per cent (up by 348 bps), and which remain well above regulatory requirements. Advance to stable resources ratio of 76.3 per cent, and eligible liquid asset ratio of 17.1 per cent, underline its solid liquidity and along with the capital position provide a strong foundation for continued growth. Ajman Bank managed to reduce its general and administrative expenses by 5 per cent compared to last year despite its transformation activities and focus on technology investments initiated in 2024.

Strong and further improving financial standing, continued impetus in its transformation strategy and a robust UAE economy should ensure that the bank is well-positioned to sustain its growth trajectory and deliver consistent profitability for FY 2024 and beyond.