Ajman Bank announced its financial results for Q1 2010 for the DFM today showing robust asset growth from the previous quarter as well as significant fee and income growth when compared to the same period in 2009. The balance sheet has grown substantially compared to the previous year reflecting the growth and progress Ajman Bank has made despite prevailing economic conditions which presented a challenge to both the newly established bank and the wider market.

 

Ajman Bank strategy for 2010 will see it acquire growth in terms of assets, sustainable revenues, and reinforce customer loyalty by continuous improvement in products and services and an expanding reach by building on its physical presence in the UAE.

 

The financial results for the first quarter 2010, which were approved by the Board of Directors on May 9th, 2010 reflect the growth achieved and the initial success of the strategic push. The total assets of the bank grew by 12% to 2.170 billion AED compared with total assets of 1.928 billion AED declared for Q4 2009. This double digit growth resulted from an increase of 8.3% in Islamic financing instruments (1.868 billion AED for Q1 2010 compared to 1.724 billion AED in Q4 2009) and 121% growth in investments (96.2 million AED in Q1 2010 and 43.5 million in Q4 2009). The asset growth rates bode well for 2010 planned growth in the asset size.

 

Revenues earned in the first quarter of 2010 have also been in line with the asset growth. Total income earned in Q1 2010 is 24.765 million AED, 47.2% higher than the income of first operating quarter, Q1 2009. Income from Islamic financial instruments has grown 45% from first quarter of 2009 (20.1 million AED in Q1 2010 versus 13.8 million in Q1 2009). Growth in fees and other income is also encouraging with an increase of 183% compared to the first quarter of 2009. The bottom-line achieved is comparable to that of Q1 2009 notwithstanding the increase in expenses that resulted from an larger workforce and expanded distribution network, which now includes five branches, a presence in each of the major emirates and a growing ATM network.

 

Mubashar H. Khokhar, CEO of Ajman Bank commented on the results saying, “At this early stage in our development year on year and quarter on quarter comparisons may offer useful insights but will not tell the whole story. This year we are focused strongly on growth, not only in customer base and deposits, but also in developing our physical presence throughout the Emirates. From pre-operations, through our first operational quarter until today, we are continuing to make the necessary investments in our network, our people and our service quality that will ensure we have a strong, sustainable future in the UAE and the wider region. Our financial result show promise and that we are still on track to achieving our ambition to become the UAE’s favourite bank.”