Ajman Bank reports strong first quarter 2011 income of AED 49.5 million

Ajman Bank, an award-winning financial services institution committed to transforming the experience of Islamic banking, announced today its financial results for the three months ending March 31, 2011, demonstrating continued growth in its core activities.

The bank reported strong growth in operating income for the quarter, with income in the first quarter of 2011 reaching AED 49.5 million compared to AED 24.7 million in the corresponding period of 2010, an increase of 100 per cent.

As of March 31, 2011, customer deposits stood at AED 2.83 billion compared to AED 2.02 billion at the end of 2010, representing an increase of 40 per cent.

Ajman Bank’s total assets at the end of the first quarter of 2010 stood at AED 4.2 billion, an increase of 30 per cent compared to AED 3.23 billion at the end of fourth quarter of 2010.

Ajman Bank’s Islamic financing instruments portfolio grew by 29 per cent in the first quarter of 2011. New investment in Islamic financing instruments increased from AED 2.78 billion as of December 31, 2010, to AED 3.59 billion as of March 31, 2011.

The bank reported a loss for the quarter of AED 8.4 million, which was in line with expectations and 39 per cent lower than the loss of AED 13.9 million in the same period of 2010. Expenses during the quarter increased by 8 per cent, driven by the bank’s investment in its expanded branch network and additional services.

“In just two years, Ajman Bank has established a strong presence in the UAE banking sector. The bank’s performance in the first quarter of 2011, which is in line with expectations, is notable for a significant increase in operating income. Through its prudent investment in world-class infrastructure and alternative distribution channels, the outlook for the bank remains positive,” said His Highness Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank.

“Much of the growth in the bank’s assets is the result of the emphasis we have placed on commercial and small business financing. Along with our focus on customer service excellence, we are confident that we have a sound strategy for continued growth,” said Mubashar H. Khokhar, Chief Executive Officer, Ajman Bank.

Ranked third in customer service among all Islamic banks in the country by Ethos Consultancy, Ajman Bank was recently named the UAE’s “Best Domestic Bank” at the 2010 Islamic Business & Finance Awards. The bank currently operates eight full-service branches in the UAE.