Ajman Bank posts record profit in H1
- Last updated: July 18, 2024 | 19:36
Sheikh Ammar Bin Humaid Al Noaimi, Crown Prince of Ajman and Chairman of Ajman Bank Board of Directors, chaired the meeting held on Thursday at the bank’s headquarters, with the attendance of board members and Mustafa Al Khalfawi the CEO of the bank.
Sheikh Ammar reviewed the bank’s results for the first half of 2024, which showed that it achieved an all-time high half-yearly net profit of Dhs216 million up by 111%, supported by strong profit of Dhs108 million in Q2 2024. This is on the back of a 12% increase in total operating income to Dhs813 million as compared to Dhs729 million in corresponding first half of 2023, and net operating income of Dhs428 million - an increase of 2%. Return on shareholder Equity (annualised) and Return on Asset (annualized) have doubled in H1 2024 as compared to corresponding period of 2023 to 15.0% (up by 695 bps) and 1.8% (up by 88 bps) respectively.
The strong results are supported by a healthy balance sheet with Total Assets of Dhs24.2 billion, Customer deposits of Dhs20.2 billion and Dhs9 billion of equity.
Sheikh Ammar Bin Humaid Al Nuaimi said, “Ajman Bank’s excellent H1 2024 financial performance showcases the success of our strategic initiatives and the strength of the UAE’s economic landscape. We are immensely proud of our team and extend my gratitude to the Board of Directors, senior management, and all employees for their continued support, hard work and dedication.”
Mustafa Al Khalfawi, CEO of Ajman Bank, stated, “Our outstanding H1 2024 financial results with substantial income growth across all core businesses underscore Ajman Bank’s unique market position and reputation as a trusted partner. These accomplishments are a collective victory for our team and our customers, driving us to innovate and excel further. Speed, Service, and Specialisation are the cornerstones of our operations. We are poised to capitalize on exciting opportunities ahead of us and we remain committed to delivering exceptional value and fostering innovation to drive sustainable growth.”
Ajman Bank’s Capital adequacy ratio increased to 17.6% (up by 251 bps) and Tier 1 Capital Ratio increased to 16.4% (up by 252 bps), which remain well above regulatory requirements. Advance to stable resources ratio of 78.4%, and eligible liquid asset ratio of 19.8%, underline its solid liquidity and along with the capital position provide a strong foundation for continued growth. Ajman Bank’s non-performing financing ratio reduced significantly to 10.9% in Q2 2024 (from 14.7% in Q1 2024), clear evidence of the improving credit portfolio of the bank.
This strong financial performance was delivered thanks to continued focus on expanding the customer base, operating income, enhancing the credit quality, and continued focus on risk management. 33% of the new accounts opened through digital channels which emphasis on our focus on the digital transformation. Additionally, the BBB+ Rating with a Stable Outlook from Fitch reflects our financial strength and stability.
The bank is confident that the solid foundation on the back of it’s strong H1 2024 results, the ongoing transformation and the strength of the UAE economy will help it maintain a strong momentum for growth and continued profitability through 2024 and beyond.