REPORT BASED ON PRESS RELEASE: BY AJMANBANK ON NOV 09, 2023
Ajman Bank’s Board Meeting: Reviewing Financial Performance and Strategic Initiatives
Today, His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, led the bank’s board meeting at the Ajman Ruler’s Court. The gathering saw the attendance of board members and Mr. Mustafa Mohammed Saeed Al Khalfawi, the CEO of the bank.
High on the agenda was a comprehensive review of Ajman Bank’s performance for the third quarter of 2023. The bank showcased a robust financial performance, with net operating income reaching 615 million dirhams, marking a significant 39% increase compared to the same period last year. This growth was supported by a substantial rise in assets, reaching 25.2 billion dirhams, reflecting a 23% increase year-on-year. Additionally, the bank demonstrated commendable efforts in enhancing liquidity levels and capital adequacy.
However, amidst this positive performance, the bank reported a net loss of AED 87.3 million compared to a net profit of AED 112.6 million during the same period in 2022. This loss can be attributed to significant provisioning undertaken by the bank. While impacting short-term profitability, these provisions strategically position Ajman Bank for sustained growth and long-term success.
Mr. Al Khalfawi, the CEO of the bank, expressed confidence in Ajman Bank’s solid fundamentals and steady income generation streams. He highlighted the bank’s commitment to continuous cost rationalization and strategic investment in digital transformation to enhance customer service excellence and operational resilience. To make products and services more accessible, the bank is expanding its consumer and wholesale banking sectors and broadening its reach with more physical and digital branches.
Looking ahead, Mr. Al Khalfawi foresees a strong trajectory of profitability, with a focus on steady dividend distribution to shareholders in the coming years. He emphasized that the losses incurred this year stem from a one-off transaction, from which valuable lessons have been learned, further sharpening the bank’s strategic acumen.
Discussing Ajman Bank’s strengths, Mr. Al Khalfawi underscored the importance of its shareholders, particularly the Government of Ajman, which owns the largest share of its stock. This ownership structure positions Ajman Bank as a fundamental player in shaping the banking landscape in the UAE, always ready to leverage opportunities provided by the local market.
Furthermore, Mr. Al Khalfawi emphasized the bank’s commitment to compliance with regulations and regulatory legislation, particularly amidst accelerated changes in the regulatory environment.
Ajman Bank’s liquidity remains resilient, with an advances to stable resources ratio of 78.86% and an eligible liquid asset ratio of 19.22%, both surpassing regulatory requirements. This underscores the bank’s capacity to withstand financial fluctuations and its commitment to financial prudence.
