Ajman Bank Achieves Staggering Dh1.56 Billion Operating Income, Surging 66% in 2023
In a remarkable announcement on Wednesday, Shariah-compliant Ajman Bank revealed a monumental achievement in its financial performance, reporting a total operating income of Dh1.56 billion for the fiscal year 2023. This figure marks a staggering 66% surge from Dh942 million recorded in 2022, signaling a remarkable trajectory of growth and prosperity.
Fueling this exceptional performance was the robust net operating income, which stood at Dh857 million, a testament to the bank’s strategic focus and operational efficiency. This impressive feat was further bolstered by a significant expansion in assets, with total assets reaching Dh24.9 billion, reflecting a notable increase of 18.12% compared to the preceding year.
Key to Ajman Bank’s success was the steadfast growth in Islamic financing assets, which experienced a substantial uptick of 8.29%, culminating in a total of Dh13.8 billion by the end of 2023. Simultaneously, customer deposits witnessed a robust surge, ascending by 20.8% to reach Dh19.7 billion, underscoring the bank’s unwavering commitment to meeting the evolving needs of its clientele.
Chairing the bank’s board meeting, Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, presided over discussions that celebrated these remarkable achievements and outlined future strategic endeavors.
In a proactive move to fortify asset quality, Ajman Bank initiated a one-off provision, strategically allocated in the fourth quarter of 2023. While this decision resulted in a one-off net loss of Dh390 million for the fiscal year, compared to a net profit of Dh162 million in 2022, it underscores the bank’s prudent risk management approach and unwavering commitment to maintaining a resilient balance sheet.
Emphasizing the forward-looking perspective, Mustafa Mohammed Saeed Al Khalfawi, CEO of Ajman Bank, highlighted the strategic significance of the provisions, envisioning them as pivotal in addressing asset quality concerns and fostering a healthier portfolio conducive to sustained and long-term growth beyond 2024.
Despite the one-off provision, Ajman Bank maintained commendable financial resilience, boasting a healthy capital adequacy ratio of 15.62% and a Tier 1 capital adequacy of 14.48%, both significantly exceeding regulatory requirements. This robust capital position underscores the bank’s steadfast commitment to financial stability and regulatory compliance, positioning it as a reliable cornerstone of the banking sector.
Reflecting on the past fiscal year’s challenges and triumphs, Al Khalfawi remarked, “The last fiscal year presented us with an opportunity to strengthen our foundation and realign our strategies in the face of unforeseen challenges.” He reiterated the bank’s unwavering dedication to prudent risk management practices and affirmed its commitment to navigating future uncertainties with resilience and foresight.
In essence, Ajman Bank’s remarkable performance in 2023 epitomizes its unwavering resilience, strategic foresight, and commitment to excellence in the face of evolving market dynamics. As it charts a course towards sustained growth and prosperity, the bank stands poised to continue its legacy of delivering value to stakeholders and contributing to the advancement of the banking industry landscape.
Looking ahead, Ajman Bank remains steadfast in its pursuit of excellence, poised to capitalize on emerging opportunities and navigate dynamic market conditions with agility and resilience. With a strategic focus on innovation and customer-centricity, the bank is committed to enhancing its offerings, delivering unparalleled value to its diverse clientele, and fostering long-term relationships built on trust and integrity.
Embracing a forward-thinking approach, Ajman Bank is primed to leverage its robust foundation and strategic initiatives to propel growth and reinforce its position as a leading financial institution in the region. Through prudent risk management practices, proactive measures, and a relentless pursuit of operational excellence, the bank aims to optimize shareholder value while driving sustainable socio-economic development.
Furthermore, Ajman Bank remains deeply rooted in its commitment to social responsibility, actively engaging in initiatives that contribute to the well-being of communities and promote inclusive growth. By championing causes that empower individuals, foster education, and support economic empowerment, the bank seeks to make a meaningful difference in the lives of people across the UAE and beyond.
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