Ajman Bank Declares Third Quarter 2013 Results Reports Profit of AED 13.7 Million

Ajman Bank, the award-winning Islamic financial services institution, declared today a profit of AED 13.7 million for the period ended 30th September 2013. Overall the balance sheet grew by 23% compared with December 2012 with total assets at AED6.7 bn.

Asset growth primarily came from an increase of 26% in the total Islamic financing and investment portfolio - the portfolio comprising of AED 5.1b Islamic financing and AED 676m of wakala placements with banks and financial institutions. Islamic financing by itself grew by 13% from AED 4.5b to AED 5.1b. Investment securities comprising mainly of Sakuk investments grew by 8% compared with the year-end level of 2012.
On the liabilities side customer deposits reached AED 4.9b compared with AED 4.3 b at December 2012 a growth of 14% and a robust increase of about AED 590m in placement by other banks.

Mr Seifeldin Abdul Kareem, Acting CEO of Ajman Bank, commented, "This quarter we generated strong momentum with impressive growth in assets that was primarily driven by Islamic financing and investment. These earnings highlight the strength of Ajman Bank and our varied portfolios. Looking ahead we see positive trends emerging from our strategic actions. Our key priorities remain unchanged as we continue to make excellent progress in integrating our businesses while expanding our reach in the market for sustainable growth".

The asset growth had its corresponding increase in income from Islamic financing which was AED 186 m as against AED 157m for the corresponding nine months of 2012, a growth of 19%. Whereas investment income saw a decrease of 13%, fee and commission income registered a 20% growth as compared to the corresponding nine months of previous year. Depositors share of profit rose 45% to AED 61m compared with AED 42m at September 30, 2012.

Net operating income at AED 180m was 7% higher than that at September 30, 2012.
Expense before depreciation for the nine months compared to Sept 2012 grew by 8%; 13% increase in staff costs offset by a 5% decrease in general and administrative expenses. However, the provision charge for impairment was significantly higher compared with last year. As a result net profit of AED 13.7 was lower than that of the corresponding period last year (AED 25.2m).

Ajman Bank began its operations in 2008 and is the first Shariah compliant Islamic bank incorporated and headquartered in the Emirate of Ajman. It now operates 11 branches spread across the UAE. The bank provides consumers, corporations, governments and institutions with a broad range of financial products and services, including an array of tailor-made products incorporating Islamic financing techniques.

In a challenging financial environment, Ajman Bank maintained earnings momentum recording a breakthrough performance with record growth rate of 382% in 2012 year end compared to 2011 year end.