Ajman Bank has reported its highest-ever annual profit, achieving Dhs 440 million in Profit Before Tax in 2024, marking an impressive growth of 213% compared to the net loss of Dhs 390 million in 2023.
This strong performance was driven by total operating income of Dhs 1.5 billion and net operating income of Dhs 736 million.
In addition, the Bank’s Return on Shareholder Equity reached 12.9%, reflecting an increase of 2745 basis points, while its Return on Assets improved to 1.8%, up 332 basis points. As a result of these outstanding results, the Board of Directors has proposed a dividend distribution of 7.25%, subject to shareholder approval at the upcoming General Assembly.
The Bank’s solid performance is further supported by its strong financial position, with total assets of Dhs 23 billion, customer deposits of Dhs 19 billion, and equity of Dhs 3.1 billion. Key ratios also showed considerable improvement, with the Non-Performing Loan (NPL) ratio improving from 13.8% to 9.9%, largely due to the successful resolution of 31% of non-performing exposures. This recovery also helped the Bank recover 19.6% of its specific provisions.
Additionally, the Provision Coverage Ratio doubled from 1.0% to 2.1%, demonstrating the Bank’s proactive approach to increasing its reserves and positioning itself well above the industry average. The Bank also made significant strides in diversifying its portfolio, reducing its real estate exposure by 7.3% and increasing investments in high-quality assets across various sectors.
His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, praised the Bank’s record-breaking financial results as a reflection of its strong strategic vision and commitment to delivering sustainable value to its shareholders. He also acknowledged the resilience of the Bank in adapting to the evolving financial landscape and expressed his gratitude to the Board of Directors, senior management, and all employees for their dedication and exceptional performance.
Mr. Mustafa Al Khalfawi, CEO of Ajman Bank, emphasized that the Bank’s robust performance in 2024 was a direct result of its transformation strategy, which focuses on speed, service, and specialization. He highlighted the Bank’s continued commitment to innovation and customer-centric solutions, which have maximized efficiency and led to a 5% reduction in general and administrative expenses.
Al Khalfawi also pointed to the Bank’s focus on addressing distressed assets, which contributed to its strong recoveries and strengthened financial position. Moving forward, he reaffirmed the Bank’s dedication to building long-term value for shareholders and reinforcing its position as a key player in the UAE’s Islamic banking sector, with continued emphasis on sustainable growth and meeting the evolving needs of customers.
In terms of capital and liquidity, Ajman Bank’s Capital Adequacy Ratio increased to 19.1%, and its Tier 1 Capital Ratio rose to 18.0%, both of which are well above regulatory requirements. The Bank also maintains a strong liquidity position, with an Advance to Stable Resources Ratio of 76.3% and an Eligible Liquid Asset Ratio of 17.1%. Despite its ongoing transformation initiatives and technology investments, the Bank successfully reduced its administrative expenses by 5%.
Looking ahead, Ajman Bank’s continued strong financial performance, its robust transformation strategy, and the positive momentum of the UAE economy position the Bank well for sustained growth and consistent profitability. The Bank remains committed to long-term value creation and is well-equipped to face regional and global banking challenges.
tanvir@dubainewsweek.com
