Ajman Bank reported a net loss of Dh87.3 million for the third quarter of 2023 compared with a net profit of Dh112.6 million in the same period in 2022.
The lender attributed the trend to “substantial provisioning”. The provisions, while impacting short-term profitability, have "strategically positioned Ajman Bank for sustained growth and long-term success", it said on Thursday.
Net operating income rose 39 per cent year-on-year to Dh615 million. That was supported by a 23 per cent year-on-year growth in assets to Dh25.2 billion.
Efforts to improve liquidity levels and capital adequacy, too, shored up net operating income, it said.
“Looking ahead, we foresee a strong trajectory of profitability, fostering a steady dividend distribution to our shareholders in the coming years. The losses we incurred this year stem from a one-off transaction which we have learnt valuable lessons from, further sharpening our strategic acumen,” Mustafa Mohammed Saeed Al Khalfawi, CEO of Ajman Bank, said in a statement.
The bank’s advances-to-stable resources ratio stood at 78.86 per cent, while its eligible liquid asset ratio was 19.22 per cent, both above the regulatory requirement.
The bank’s earnings were reviewed at a board meeting chaired by His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, at the Ajman Ruler’s Court on Thursday.