Ajman Bank Posts Record Growth of 382% in 2012 Net Profit

Ajman, UAE; February 15, 2013: Ajman Bank, the award-winning financial services institution and winner of the ‘Fastest Growing Bank in the UAE’, announced today its financial results for the year ended 31 December 2012, demonstrating record growth and continued positive momentum.

Ajman Bank reported a Net Profit of 33.5 million for 2012, representing a robust increase of 382% from the net profit of 6.9 million achieved in the year ended 31 Dec 2011. The income was mainly generated through corporate banking, SME’s, and treasury operations.

His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, commented on the results, saying: “Despite global economic challenges, the UAE economy has continued to grow with a stable outlook. Ajman Bank has again been successful in establishing its market position, delivering record growth for the year and looking to capture new opportunities for diversifying revenue streams. The Bank remains well capitalized to target growth sectors in the year ahead and is well positioned to achieve sustainability and deliver ongoing value to its shareholders."

Mohamed Amiri, Acting Chief Executive Officer, Ajman Bank, said: “Our outstanding financial performance throughout the year reflects strong earnings in financing, operating income, and profitability and is testament of the Bank’s robust position to maintain and grow market share.” He also added: “Building on our achievements in 2012, we will continue to launch new initiatives to improve earnings and develop core income across different business sectors in 2013, while adopting the latest technologies and actively investing to improve our customer value proposition to keep Ajman Bank at the forefront of the Islamic banking industry.”

The Bank recorded a significant growth in business Assets.  Total balance sheet size grew to 5.48 billion at the end of 2012, recording a 37% increase from 3.99 billion at the end of December 2011. Islamic banking products increased by 54% to 4.53 billion compared to 2.94 billion in 2011. The bank’s investment in Shariah compatible securities including Sukuks rose by 11.7% to 431 million from 385 million in 2011.

Ajman Bank was again successful in raising medium-term funding, highlighting the mounting confidence that the Bank has instilled and reinforced among its growing customer base. Customer Deposits recorded an increase of 65% reaching 4.3 billion by the end of 2012 against 2.6 billion in December 2011.

The Bank reported strong revenue growth with its Gross Income for the year amounting to 291 million – an increase of 18% compared to 246.2 million achieved at the end of 2011. Asset growth was mirrored by the relative income growth from the associated class of assets and was mainly due to an increase of 10.1% in income from Islamic banking products, 38.2% in investment income, and of 69% from fees and commissions. Depositors’ share of profit was of 63.7 million against 66.2 million in 2011, a year to year cost of funds reduction of 3.8%.

In 2012, Ajman Bank upgraded its internet banking platform and acquired new systems in the area of risk management with an objective to strengthen the bank’s infrastructure and capacity to handle increasing volumes of business and sustain customer confidence.

Ajman Bank started its operations in 2009. It now operates with 11 branches spread across the Emirates. In a challenging financial environment, Ajman Bank maintained earnings momentum recording a breakthrough performance for the third quarter of 2012, with a 623% increase in net profit recorded by the end of September 2012, compared to the same period in 2011.

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About Ajman Bank:  
Ajman Bank is a young, agile Islamic commercial bank built on the values of integrity, trust and transparency. The bank provides a wide range of value-driven banking services in the UAE for individual, business and government clients, all in compliance with Shariah principles. Ajman Bank seeks out the market’s best products, people and technology in order to deliver what customers want, how they want it, delivering real value and recreating that human touch lost in modern banking.

Headquartered in Ajman and strongly supported by its government, Ajman Bank is the keystone of the emirate’s economic development strategy and is in a position to benefit from its growth and potential like no other. Ajman Bank is committed to becoming a sustainable organisation in its truest sense, balancing care for the community and employees with the business of delivering value to its shareholders and customers.

For further information, please contact:
Fida El Samad
VP - Head of Corporate Communications
Tel: 050 4594132
E-mail: f.elsamad@ajmanbank.ae