Ajman Bank has achieved its highest annual profit before tax in its history, reaching AED 440 million for 2024. This marks a significant growth of 213% compared to the net loss of AED 390 million in 2023. The bank’s total operating income was AED 1.5 billion, with a net operating income of AED 736 million. The return on shareholder equity increased to 12.9%, and the return on assets rose to 1.8%. The board of directors proposed a cash dividend of 7.25%, subject to shareholder approval.
The strong financial performance was supported by a healthy balance sheet, with total assets of AED 23 billion, customer deposits of AED 19 billion, and equity of AED 3.1 billion. The bank’s capital position and asset quality showed significant improvement, with the non-performing loan (NPL) ratio decreasing from 13.8% to 9.9%. This reduction was largely due to the successful resolution of nonperforming exposures, which helped recover 19.6% of specific provisions. The expected credit loss (ECL) coverage ratio doubled from 1.0% to 2.1%, and overall provision coverage improved by 22%. The bank diversified its portfolio by reducing real estate concentration by 7.3% and increasing exposure to high-quality assets.
Sheikh Ammar bin Humaid Al Nuaimi, Chairman of Ajman Bank, highlighted the bank’s strategic vision and commitment to delivering sustainable value for shareholders. He noted that Ajman Bank plays a pivotal role in supporting the UAE’s economic growth and that its turnaround reflects resilience and adaptability in the financial landscape. Mustafa Al Khalfawi, CEO of Ajman Bank, emphasized the success of their transformation strategy, driven by speed, service, and specialization. The bank’s focus on innovation and customer-centric solutions helped maximize efficiency and reduce general and administrative expenses by 5%.
Ajman Bank’s capital adequacy ratio increased to 19.1%, and the Tier 1 Capital Ratio rose to 18.0%, both well above regulatory requirements. The bank’s solid liquidity position and strong capital foundation provide a robust base for continued growth. With a robust UAE economy and ongoing transformation efforts, Ajman Bank is poised to sustain its growth trajectory and deliver consistent profitability.
The bank’s achievements in 2024 underscore its commitment to sustainable growth and its position as a key player in the UAE’s Islamic banking sector. By focusing on advanced financial services that meet evolving customer needs, Ajman Bank continues to drive long-term value for shareholders while addressing regional and global banking challenges.
Ajman Bank’s financial success is a testament to its strategic initiatives and the strength of the UAE’s economic landscape. The bank’s ability to adapt and innovate has been instrumental in its success, positioning it well for future growth and profitability.
