The bank reported strong growth in operating income over the period, with net income for the three months ending June 30, 2011, reaching Dhs48.5m compared with Dhs28.7m for same period of 2010, an increase of 69 percent.
Comparing quarter-on-quarter, Ajman Bank’s income increased by 24% in the second quarter of 2011 compared to Dhs41.2m in the first quarter of 2011. Income from Islamic financing for the quarter was Dhs51.1m compared with Dhs24.9m for the same period of 2010, an increase of 105%.
Income from Islamic financing for the six months ended June 30, 2011 was Dhs92.4m compared to Dhs45m in the same period of 2010, an increase of 105%. Income from investments and, fees & commissions grew by 97% and 10% respectively.
Share of profit of customer deposits rose in the first half of 2011 to Dhs38.2m compared to Dhs10.9m in the first half of 2010, an increase of 250%. Enhanced income ameliorates the net loss from Dhs15.9m for the half year ended June 30, 2010 to Dhs7.8m for the half year ended June 30, 2011, a decrease of 51%.
As of June 30, 2011, customer deposits stood at Dhs2.87bn compared to Dhs2.02bn in the same period of 2010, an increase of 42%.
Ajman Bank’s total assets at the end of the second quarter of 2011 stood at Dhs4.4bn, an increase of 38% compared to Dhs3.2bn as of December 31, 2010.
As of June 30, 2011, Ajman Bank’s Islamic financing instruments portfolio stood at Dhs3.7bn compared to Dhs2.7bn as of December 31, 2010, an increase of 34%.
The bank has been successful in improving its margins on financing and investments and at the same time keeping its cost of funds in check. Margins on financing improved at least 50 basis points compared to the same period in 2010. Gross return on assets as of June 30, 2011 improved to 2.6% compared to 2.3% in the same period of 2010.
For the first time since its inception in 2008, the bank achieved a quarterly net profit from its core banking activities. The net profit for second quarter 2011 is Dhs0.5m, demonstrating the bank’s transformation towards profitability in its core business.
His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, said: “Since launching operations in 2008, Ajman Bank has established a strong presence in the UAE banking sector. The second quarter of 2011 has seen further growth in a number of core business areas, including operating income and customer deposits. Through strong leadership and a sound business strategy, the outlook for the bank remains extremely positive.”
The second quarter of 2011 also saw the launch of Mahra, Ajman Bank’s new Ladies Banking division designed to meet the professional requirements and lifestyle needs of women across the UAE.
Mubashar H. Khokhar, Chief Executive Officer, Ajman Bank, said: “Ajman Bank continued to strengthen its core operations in the second quarter of 2011. A focus on the commercial and small business sectors, along with the introduction of innovative, new retail products, leaves the bank well positioned for continued growth.”
Monday, August 8- 2011 @ 13:53 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.