Ajman: H.H. Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Executive Council, and Chairman of the Board of Directors of Ajman Bank, presided over a critical Board of Directors meeting at Ajman Bank's headquarters. This meeting was attended by Sheikh Rashid bin Humaid Al Nuaimi, Chairman of the Municipality and Planning Department in Ajman and Vice Chairman of the Board of Directors of Ajman Bank. The board addressed several financial and administrative matters, reviewed the bank's business operations, and made significant decisions.
According to Emirates News Agency, Ajman Bank has reported a record annual "Profit before Tax" of AED440 million, marking a 213% growth compared to a net loss of AED390 million in the previous year. This achievement was driven by a total operating income of AED1.5 billion and a net operating income of AED736 million. In 2024, the bank reported a Return on Shareholder Equity of 12.9% and a Return on Asset of 1.8%. The board of directors proposed a 7.25% dividend distribution, pending shareholder approval at the upcoming General Assembly meetings.
Ajman Bank's robust financial results are supported by a strong balance sheet, with Total Assets of AED23 billion, Customer Deposits of AED19 billion, and AED3.1 billion in Equity. The bank demonstrated significant improvement in key ratios, with the NPL ratio dropping from 13.8% to 9.9%. This was largely due to the successful resolution of 31% of nonperforming exposure, aiding in the recovery of 19.6% of specific provisions. The ECL coverage ratio increased from 1.0% to 2.1%, indicating the bank's strengthened reserves.
Sheikh Ammar praised the bank's performance, attributing the results to Ajman Bank's strategic vision and commitment to shareholder value. He highlighted the bank's role in supporting the UAE's economic growth and commended the board, senior management, and employees for their dedication. CEO Mustafa Al Khalfawi echoed these sentiments, emphasizing the bank's strategy of speed, service, and specialisation, along with a focus on innovation and customer-centric solutions.
The bank's capital adequacy ratio increased to 19.1%, and the Tier 1 Capital Ratio rose to 18.0%, both well above regulatory requirements. Ajman Bank maintained solid liquidity with an Advance to Stable Resources Ratio of 76.3% and an Eligible Liquid Asset Ratio of 17.1%. Despite ongoing transformation activities and technology investments, the bank managed to reduce general and administrative expenses by 5%.
Ajman Bank's strong financial position and strategic initiatives align it well for sustained growth and consistent profitability for FY 2024 and beyond, amidst a robust UAE economy.