Ajman Bank Achieves Record Annual Profits Of AED 440 Million With 213% Growth In 2024
Ajman Bank recently held a board meeting led by H.H. Sheikh Ammar bin Humaid Al Nuaimi, the Crown Prince of Ajman. The meeting, attended by Sheikh Rashid bin Humaid Al Nuaimi, focused on financial and administrative matters. Ajman Bank achieved a record "Profit before Tax" of AED440 million, marking a 213% increase from a net loss of AED390 million in 2023.
The bank's impressive performance was driven by a total operating income of AED1.5 billion and net operating income of AED736 million. In 2024, the Return on Shareholder Equity rose to 12.9%, and the Return on Assets increased to 1.8%. The board proposed a 7.25% dividend distribution, pending shareholder approval at the upcoming General Assembly meetings.
Sheikh Ammar expressed his gratitude for the bank's achievements, stating, "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." He acknowledged the dedication of the Board of Directors, senior management, and employees in driving success.
Ajman Bank's balance sheet remains robust with total assets at AED23 billion and customer deposits reaching AED19 billion. The equity stands at AED3.1 billion. Key ratios showed significant improvement: the NPL ratio decreased from 13.8% to 9.9%, aided by resolving 31% of nonperforming exposures. This also helped recover 19.6% of specific provisions.
The ECL coverage ratio doubled from 1.0% to 2.1%, as reserves were increased above industry averages. Overall provision coverage improved by 22%. The bank diversified its portfolio by reducing real estate concentration by 7.3% while increasing exposure to high-quality assets across various sectors.
CEO Insights and Future Plans
Mustafa Al Khalfawi, CEO of Ajman Bank, highlighted their transformation strategy's success in enhancing shareholder value and expanding their customer base. He stated, "Our robust performance in 2024 to enhance our value and positive returns of our shareholders... reflects the success of our transformation strategy." The focus on innovation and customer-centric solutions has maximised efficiency while reducing expenses by 5%.
Ajman Bank's capital adequacy ratio rose to 19.1%, with Tier 1 Capital Ratio at 18%. These figures remain well above regulatory requirements, ensuring solid liquidity with an advance-to-stable resources ratio of 76.3% and an eligible liquid asset ratio of 17.1%. Despite ongoing transformation activities, general expenses decreased by 5%.
The bank is poised for sustained growth due to its strong financial standing and strategic initiatives prioritising sustainable growth through advanced financial services tailored to evolving customer needs amidst regional and global banking challenges.
Ajman Bank's continued focus on transformation strategies aligns with a robust UAE economy, positioning it well for consistent profitability in FY 2024 and beyond.
With inputs from WAM
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