(MENAFN- Khaleej Times) Ajman Bank on Monday declared its financial results for the first half of 2013, showing that net profit increased by 13 per cent to Dh13.3 million.
The bank's assets grew by approximately 12 per cent at the end of June 2013 compared with December 2012. Customer deposits registered about a four per cent growth reaching Dh4.49 billion. Deposits at year-end 2012 stood at Dh4.33 billion.
Ajman Bank chief executive officer Mohamed Zaqout said: "We maintained steady growth in many critical areas including assets, investment securities, Islamic financing and investments as well as wakala placements with banks that resulted in healthy portfolio growth for Ajman Bank."
The lender's total balance sheet footing, which at the end of last year was Dh5.48 billion, reached Dh6.12 billion. The growth components relate to a seven per cent growth in investments securities, about two per cent growth in Islamic financing and investments, and a substantial increase in wakala placements with banks. The total portfolio growth was 10 per cent over the period to Dh5.59 billion from Dh5.06 billion at the end of December 2012.
The bank's top-line growth in revenue was around 21 per cent higher compared with June 2012. Revenue improvement coming from an all-round growth from various revenue streams - about 30 per cent increase in income from fees and commissions; 19 per cent from income from Islamic financing and 24 per cent in investment income. A total operating income of Dh160.8 million was posted against Dh133.4 million for the period ended June 30, 2012. Depositors' share of profit increased 63 per cent to Dh40.8 million, compared with Dh25 million at June 30 last year.
"This was possible due to many key actions taken over the recent months such as strengthening the quality and diversity of earnings and improving our operating systems, cost structure and operating margins. A lot of work still lies ahead but we are making steady progress," Zaqout said.
Total staff and administrative expenses were well managed within a nominal increase of 3.9 per cent as compared to the six-month period ended June 30, 2012.
The charge for specific finance-related impairments and general provisions amounted to Dh21.2 million, an increase of 47 per cent compared with June 2012 to offer a higher portfolio coverage.
Sixty-one per cent of the charge was on account of specific provisions while 39 per cent related to the general provisions mandated by the UAE Central Bank.
"Generating consistent and quality earnings is a key priority for us as we continue to serve our clients and communities. We have, therefore, put in place the very best systems, practices, controls and technology managed by an exceptional team to meet the highest standards. We are confident that these investments will pay off over time and will enable us to capitalise on the right opportunities to deliver superior results," Zaqout said.
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