Dubai: Ajman Bank on Thursday reported a net profit of Dh7 million for 2011, up 75 per cent from the Dh4 million profit reported in 2010.
The bank achieved strong growth in income from its core activities, with total income increasing 27 per cent to Dh246.2 million from Dh194.4 million.
The growth in total income was fuelled by an increase of approximately 73 per cent in income from Islamic financing and a doubling of income from investment securities. The bank's net income for 2011 was Dh179.9 million, up 14.5 per cent from Dh157 million the previous year.
As of December 31, 2011, customer deposits were up 30 per cent to Dh2.6 billion from Dh2 billion in 2010. Depositors' share of profit was Dh66.2 million, an increase of 77 per cent from the previous Dh37.3 million.
Total assets increase
Ajman Bank's total assets increased 24 per cent to Dh4 billion as of December 31, 2011 cent from Dh3.2 billion.
"Ajman Bank's sustained profitability after just three years of operations is testament to the strength of the bank's business model and efficient operations," said Shaikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank.
"The bank's performance in 2011 is notable for witnessing customer deposits increasing by almost a third.
"With our solid funding base and profitability, Ajman Bank is superbly placed to support the long-term economic development of the emirate of Ajman and the wider UAE."
The bank said it continued with its conservative approach to provisioning in 2011, with Dh15.9 million set aside for impairments in financing and investment, of which 43 per cent was due to general provisions mandated by the Central Bank.
"Despite challenging market conditions, we have been able to increase income and improve our margins while maintaining a clear focus on the quality of our underlying assets" said Mohammad Amiri, acting CEO.
- 27%: rise in total incomefor 2011
- 30%: rise in customer deposits during the period
