Ajman - Arabstoday
Ajman Bank, an award-winning financial services institution committed to transforming the experience of Islamic banking, on Monday announced its financial results for the second quarter of 2011, demonstrating sustained growth in its core activities. The bank reported strong growth in operating income over the period, with net income for the three months ending June 30, 2011, reaching Dhs48.5 million compared with Dhs28.7 million for same period of 2010, an increase of 69 percent. Comparing quarter-on-quarter, Ajman Bank’s income increased by 24 per cent in the second quarter of 2011 compared to Dhs41.2 million in the first quarter of 2011. Income from Islamic financing for the quarter was Dhs51.1 million compared with Dhs24.9 million for the same period of 2010, an increase of 105 per cent. Income from Islamic financing for the six months ended June 30, 2011 was Dhs92.4 million compared to Dhs45 million in the same period of 2010, an increase of 105 per cent. Income from investments and, fees & commissions grew by 97 per cent and 10 per cent respectively. Share of profit of customer deposits rose in the first half of 2011 to AED 38.2 million compared to Dhs10.9 million in the first half of 2010, an increase of 250 per cent. Enhanced income ameliorates the net loss from Dhs15.9 million for the half year ended June 30, 2010 to Dhs7.8 million for the half year ended June 30, 2011, a decrease of 51 per cent. As of June 30, 2011, customer deposits stood at Dhs2.87 billion compared to Dhs2.02 billion in the same period of 2010, an increase of 42 per cent. Ajman Bank’s total assets at the end of the second quarter of 2011 stood at Dhs4.4 billion, an increase of 38 per cent compared to Dhs3.2 billion as of December 31, 2010. As of June 30, 2011, Ajman Bank’s Islamic financing instruments portfolio stood at Dhs3.7 billion compared to Dhs2.7 billion as of December 31, 2010, an increase of 34 per cent. The bank has been successful in improving its margins on financing and investments and at the same time keeping its cost of funds in check. Margins on financing improved at least 50 basis points compared to the same period in 2010. Gross return on assets as of June 30, 2011 improved to 2.6 per cent compared to 2.3 per cent in the same period of 2010. For the first time since its inception in 2008, the bank achieved a quarterly net profit from its core banking activities. The net profit for second quarter 2011 is Dhs0.5 million, demonstrating the bank’s transformation towards profitability in its core business. Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, said: “Since launching operations in 2008, Ajman Bank has established a strong presence in the UAE banking sector.” From / Gulf Today