Ammar Al Nuaimi Chairs Ajman Bank's Board Meeting, Driving Strategic Initiatives

Ajman Bank Reports 14% Profit Surge as UAE's Mid-Tier Lenders Outpace Regional Giants

Ajman Bank has delivered a standout performance in the first half of 2025, posting pre-tax profits of AED 266 million—a 14% jump that signals the growing strength of the UAE's smaller banking players. The results underscore how focused regional lenders are capitalizing on the Emirates' economic diversification drive, while successfully competing against larger institutions through digital innovation and strategic financing growth.

Financial Performance Highlights Strong Operational Execution

The bank's robust numbers tell a story of disciplined growth and operational efficiency. Total operating income climbed to AED 751 million, while net operating income reached AED 399 million. Perhaps more importantly for long-term sustainability, total assets expanded 17% since the end of 2024 to AED 26.6 billion, driven by a 16% surge in the financing portfolio to AED 17.8 billion.

Customer deposits grew 11% to AED 20 billion since the start of the year, reflecting continued momentum across both retail and corporate banking segments—a critical metric that demonstrates the bank's ability to attract and retain capital in an increasingly competitive market.

Capital Ratios Remain Resilient Despite Rapid Growth

What sets Ajman Bank apart from many regional peers experiencing similar growth is its ability to maintain strong capital and liquidity indicators. The capital ratio held steady at 17.3%, with Tier 1 capital remaining robust at 16.1% despite 17% growth in total financing—a balance that many banks struggle to achieve during expansion phases.

Return on equity jumped to 15.6% (up 29 basis points), while return on assets reached 1.9% (up 9 basis points), suggesting the bank is not just growing but growing profitably.

Asset Quality Improvements Signal Proactive Risk Management

Perhaps the most encouraging development is the marked improvement in asset quality. Non-performing loans (NPL) dropped to 8.6%—down 126 basis points compared to December 31, 2024. This improvement, combined with a 15% reduction in total Stage 2 and Stage 3 exposure during the first half of 2025, suggests the bank's proactive credit portfolio management is paying dividends.

The bank also achieved greater diversification, with real estate financing falling to 32.9% of the portfolio (down 705 basis points)—a strategic move that reduces concentration risk in a sector that has historically been volatile in the Gulf region.

Digital Infrastructure Investment Positions Bank for Future Growth

Ajman Bank's continued investment in digital infrastructure reflects broader trends across the UAE's banking sector. The bank has focused on SME onboarding platforms, point-of-sale capabilities, and real-time processing systems—areas where smaller banks can often move faster than their larger, more bureaucratic competitors.

These initiatives have contributed to increased productivity, accelerated digital operations, and enabled full automation of services across key sectors, giving Ajman Bank a competitive edge in customer experience and operational efficiency.

International Capital Markets Debut Signals Ambitious Expansion

In May, Ajman Bank successfully issued its first five-year sukuk worth $500 million as part of a $1.5 billion trust certificate program. Listed on Nasdaq Dubai, the issuance achieved over 5.4 times oversubscription with participation from more than 100 global investors, demonstrating strong international appetite for UAE mid-tier bank paper.

This debut represents a strategic milestone in the bank's journey toward diversifying funding sources and accessing international capital markets—a move that positions it alongside larger regional players who have traditionally dominated Islamic finance markets.

Sustainability Commitments Align with UAE's Green Vision

The bank maintains its commitment to providing sustainable financing worth AED 4 billion by 2030 and achieving carbon neutrality by 2050, aligning with Ajman Vision 2030 and the UAE's broader sustainable growth framework. This positioning is increasingly important as ESG considerations drive both regulatory requirements and investor preferences across the Gulf region.

For investors and market watchers, Ajman Bank's performance suggests that the UAE's banking consolidation story may be more nuanced than previously thought—with well-managed mid-tier players carving out sustainable competitive positions rather than simply becoming acquisition targets for larger institutions.