Ajman Bank Sees Impressive 31% Profit Growth, Raking in AED 380 Million in 9 Months

Ajman Bank posted strong financial results for the first nine months of 2024, with pre-tax profits jumping 32% to 414 million dirhams. The UAE regional bank's performance reflects growing momentum in the country's banking sector and successful execution of its digital transformation strategy.

Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank's Board of Directors, chaired the board meeting that reviewed these results. After-tax profits reached 380 million dirhams, marking a 31% year-on-year increase. Total operating income hit 1.2 billion dirhams, while net operating income reached 660 million dirhams.

The bank's balance sheet showed impressive growth across key metrics. Total assets climbed 23% since the end of 2023 to reach 28.0 billion dirhams. This growth was driven by a 20% increase in total financing, which reached 18.5 billion dirhams. Customer deposits grew 14% to 20.6 billion dirhams, while total shareholders' equity rose 8% to 3.4 billion dirhams.

What makes these numbers particularly noteworthy is how the bank maintained strong capital ratios despite rapid growth. The capital adequacy ratio stood at 16.9%, with Tier 1 capital at 15.8%. This suggests disciplined risk management even as the bank expanded its lending portfolio significantly.

The bank's operational efficiency improved markedly, with the cost-to-income ratio falling to 44.8% - a decrease of 541 basis points compared to end-2023. This improvement stems from continued investments in technology and digital transformation initiatives, which are becoming crucial for UAE banks competing in an increasingly digital marketplace.

Asset quality showed clear improvement. Non-performing financing ratios dropped to 7.7%, down 219 basis points from the previous year. Real estate exposure also declined by 801 basis points, indicating more diversified lending practices and effective credit risk management.

Return on equity jumped to 15.6% (up 276 basis points), while return on assets reached 2.0% (up 30 basis points). These metrics put Ajman Bank in competitive territory with larger UAE banks and suggest the institution is generating solid returns for shareholders.

"The strong results reflect Ajman Bank's robust operational performance and continued efficient execution of its strategy," said Mustafa Al Khalfawi, CEO of Ajman Bank. The bank continues focusing on enhancing operational efficiency, improving balance sheet management, and expanding its digital ecosystem.

Looking ahead, Ajman Bank has committed to providing 4 billion dirhams in sustainable financing by 2030 and achieving carbon neutrality by 2050. These commitments align with Ajman Vision 2030 and the UAE's broader economic transformation goals, positioning the bank to benefit from the country's push toward sustainable finance and green investments.