Ajman Bank has achieved a significant milestone by reporting its highest annual profit before tax of AED 440 million, marking a remarkable growth of 213% compared to a net loss of AED 390 million in 2023. This impressive performance was shared during a board meeting presided over by H.H. Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, and Chairman of the Board of Directors of Ajman Bank. The meeting, which took place at the bank’s headquarters, involved discussions on various financial and administrative matters.

According to WAM, the bank’s record-breaking results were driven by total operating income of AED 1.5 billion and net operating income of AED 736 million. In addition to this, Ajman Bank reported a return on shareholder equity of 12.9%—an increase of 2745 basis points—and a return on assets of 1.8%, up by 332 basis points. As part of its commitment to sustainable dividend distributions, the board proposed a 7.25% distribution, pending approval from shareholders in the upcoming General Assembly meetings.

Ajman Bank’s strong financial performance is supported by a healthy balance sheet, boasting total assets of AED 23 billion and customer deposits of AED 19 billion, alongside AED 3.1 billion in equity. The bank also demonstrated significant improvement in asset quality, with the non-performing loan (NPL) ratio declining from 13.8% to 9.9%. This improvement can be attributed to the successful resolution of 31% of nonperforming exposures, resulting in a recovery of 19.6% of specific provisions. The expected credit loss (ECL) coverage ratio also doubled from 1.0% to 2.1%, with overall provision coverage improving by 22%.

Sheikh Ammar expressed that these financial results reflect Ajman Bank’s strategic vision and its dedication to delivering sustainable value for shareholders. He emphasized the bank’s role in supporting the UAE’s economy and acknowledged the contributions of the board, senior management, and employees in achieving these results.

Mustafa Al Khalfawi, CEO of Ajman Bank, highlighted the bank’s commitment to enhancing shareholder value and expanding its customer base. He attributed the bank’s success to its transformation strategy, which focuses on speed, service, and specialization. The bank has worked on remediating distressed assets, which has led to strong recoveries and a bolstered financial position. Al Khalfawi assured that the bank would continue to prioritize sustainable growth and adapt to evolving customer needs while navigating regional and global banking challenges.

Following this strong performance, Ajman Bank’s capital adequacy ratio rose to 19.1%, up by 348 basis points, while the Tier 1 capital ratio also increased to 18.0%, remaining well above regulatory requirements. The ratios of advances to stable resources at 76.3% and eligible liquid assets at 17.1% further underscore the bank’s solid liquidity. Despite its focus on transformation and technology investments initiated in 2024, Ajman Bank managed to reduce general and administrative expenses by 5% compared to the previous year, ensuring a robust foundation for future growth.

Overall, the combination of improving financial standing, ongoing transformation efforts, and a strong UAE economy positions Ajman Bank well for sustained growth and profitability in FY 2024 and beyond.