Ajman Bank Declares 2nd Quarter 2013 Results, Reports Strong Performance
Ajman Bank Declares 2nd Quarter 2013 Results, Reports Strong Performance
The bank's assets grew by appox. 12% at the end of June 2013 compared with Dec. 2012. Total balance sheet footing which at the end of last year was AED 5.48 bn reached AED 6.12 bn. The growth components relate to a 7% growth in investments securities, about 2% growth in Islamic financing and investments and substantial increase in wakala placements with banks. The total portfolio growth was 10% over the period to AED 5.59 bn from AED 5.06 at the end of December 2012.
Customer deposits too registered about 4% growth reaching 4.49bn. Deposits at year end 2012 stood at AED 4.33 bn.
Commenting on the financial results, Mr Mohamed Zaqout, Chief Executive Officer, Ajman Bank, said, "We have very clear priorities to drive growth and we are executing on all of them. The second quarter figures reflect strong and consistent performance across varied sectors despite challenging market conditions. We maintained steady growth in many critical areas including assets, investment securities, Islamic financing and investments as well as wakala placements with banks that resulted in healthy portfolio growth for Ajman Bank. This was possible due to many key actions taken over the recent months such as strengthening the quality and diversity of earnings and improving our operating systems, cost structure and operating margins. A lot of work still lies ahead but we are making steady progress."
Ajman Bank earned a profit of AED 13.3m for the six months to June 2013 that is 13% higher than the profit for the corresponding period ended June 2012. Top line growth in revenue was around 21% higher compared with June 2012. Revenue improvement coming from an all round growth from the various revenue streams- about 30% increase in income from fees and commissions; 19% from income from Islamic financing and 24% in investment income. A total operating income of 160.8 m as against 133.4m for the period ended 30 June, 2012.
Depositors’ share of profit increased 63% to AED 40.8m compared with AED 25 m at June 30th of last year.
Total staff and administrative expenses were well managed within a nominal increase of 3.9% as compared to the six month period ended June 30th 2012.
Charge for specific finance related impairments and general provisions amounted to AED 21.2 m, an increase of 47% compared with June 2012 to offer a higher portfolio coverage. 61% of the charge was on account of specific provisions while 39% related to the general provisions mandated by the Central bank of UAE.
The bank was successful in keeping its cost of funds within manageable levels to mitigate the pressure on margins. Together with the continued portfolio growth, expense control, optimal funding mix to achieve low cost of funds and building enough risk cushions Ajman Bank continues on its path of balanced growth to enhance stakeholder value.
Mr Zaqout stressed, "Generating consistent and quality earnings is a key priority for us as we continue to serve our clients and communities. We have, therefore, put in place the very best systems, practices, controls and technology managed by an exceptional team to meet the highest standards. We are confident that these investments will pay off over time and will enable us to capitalize on the right opportunities to deliver superior results."
Ajman Bank began its operations in 2008 and is the first Shariah compliant Islamic bank incorporated and headquartered in the Emirate of Ajman. It now operates 11 branches spread across the UAE. The bank provides consumers, corporations, governments and institutions with a broad range of financial products and services, including an array of tailor-made products incorporating Islamic financing techniques.
In a challenging financial environment, Ajman Bank maintained earnings momentum recording a breakthrough performance with record growth rate of 382% in 2012 year end compared to 2011 year end.
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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 more information about Ajman Bank please visit http://www.ajmanbank.ae
For media contact:
Hina Bakht
Vice President
MPJ (Marketing Pro-Junction)
Mob: +971 50 6975146
Email: h.bakht@mpj-pr.com
Vice President
MPJ (Marketing Pro-Junction)
Mob: +971 50 6975146
Email: h.bakht@mpj-pr.com
http://www.mpj-pr.com
