Ajman Bank Achieves Historic Profit with 213% Growth in 2024
Ajman Bank announced a record-breaking profit of Dh440 million for 2024, marking a 213% growth compared to a Dh390 million loss in 2023. This exceptional turnaround highlights the bank’s strategic success and resilience in the evolving financial landscape.
Key Financial Highlights for Ajman Bank
The bank’s total operating income reached Dh1.5 billion, with net operating income at Dh736 million. Return on shareholder equity improved to 12.9%, up by 2745 basis points from the previous year. Additionally, return on assets increased to 1.8%, a 332-basis point rise.
Solid Balance Sheet and Growing Assets
Ajman Bank’s total assets reached Dh23 billion, supported by customer deposits of Dh19 billion. The bank’s equity stood at Dh3.1 billion, reflecting a robust and optimized balance sheet. The improvement in the bank’s capital position and asset quality contributed significantly to its performance.
Improved Non-Performing Loan (NPL) Ratio
The bank successfully reduced its NPL ratio from 13.8% to 9.9%, reflecting progress in resolving distressed assets. The resolution of 31% of non-performing exposures also helped recover 19.6% of specific provisions. The expected credit loss (ECL) coverage ratio doubled, increasing from 1.0% to 2.1%, surpassing the industry average.
Dividends and Future Outlook
Ajman Bank’s board of directors proposed distributing a 7.25% dividend, pending shareholder approval. The bank’s capital adequacy ratio rose to 19.1%, while the Tier 1 Capital Ratio increased to 18.0%. These figures show the bank’s solid liquidity and capital position.
Strategic Transformation and Innovation
CEO Mustafa Al Khalfawi highlighted the bank’s transformation strategy, focused on speed, service, and specialization. Ajman Bank also reduced its general and administrative expenses by 5% while investing in technology. The focus on improving distressed assets further strengthened the bank’s financial position.
Vision for Sustainable Growth
Ajman Bank’s strong performance in 2024 reflects the success of its transformation and strategic vision. With continued focus on sustainable growth, innovation, and customer-centric solutions, Ajman Bank is well-positioned to sustain its growth trajectory. The bank remains committed to building long-term value for its shareholders and contributing to the UAE economy’s growth.
Conclusion
Ajman Bank’s record-breaking profit for 2024 demonstrates its resilience, innovation, and commitment to sustainable growth.