(MENAFN - Khaleej Times) Ajman Bank, one of the youngest lenders in the UAE, on Wednesday posted net profit of Dh25.2 million for the first nine months of this year, representing an increase of 623 per cent from the same period in 2011.
Profit for the third quarter was Dh13.5 million up by 350 per cent from Dh3 million for the third quarter of last year. The third quarter profit also rose by 87 per cent compared to the profit of Dh7.2 million recorded during the second quarter of 2012, the bank said.
Shaikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, said the bank's solid financial performance during the first half of 2012 and throughout the third quarter is a reflection of the UAE's growing economy and the bank's consistent and balanced business strategy.
The bank has seen a significant increase in its market share. "With tremendous growth opportunities yet to be fully tapped, Ajman Bank is poised for major growth in the coming years and therefore it is essential to ensure that strong foundations are in place to support this growth, overcome global market challenges, and achieve sustainable profitability."
Mohamed Amiri, acting chief executive officer, Ajman Bank, said the results represent a very positive outlook for the year. "Our record of consistent delivery is testament to the resilience of the bank's business model. We are proud to see that our customers are increasingly satisfied with our services."
"Having launched initiatives to improve earnings, we continue to adopt the latest technologies and are actively investing to improve our customer value proposition to keep Ajman Bank at the forefront of the Islamic retail banking industry, with a dynamic customer-centric approach meant to answer our growing customer base requirements, while providing pioneering products, ongoing rewards, and a gratifying banking experience."
The bank reported strong revenue growth with the net operating income for the nine-month period amounting to Dh169 million, an increase of 33 per cent compared to Dh126 million achieved at the end of the corresponding period of 2011. The bank said one of the most notable areas of income growth during in the third quarter was the increased income from Islamic financing, which stood at Dh157 million with a nine per cent growth compared to Dh143 million at the end of the third quarter of 2011.
Income from investment securities rose by 31 per cent and income from fees and commission grew by 79 per cent compared to September 2011.
Total balance sheet size grew to Dh5.2 billion at the end of September 2012, recording over 30 per cent increase from the total asset size of Dh3.9 billion at the end of December 2011.
Investment in Islamic financing recorded substantial growth by 40.4 per cent to Dh4.13 billion compared to Dh 2.94 billion at the end of December 2011.
Investment securities comprising a major portfolio of sukuk investments stood at Dh388 million recording a marginal increase from Dh386 million as at December 2011.
The bank said it was again successful in raising medium-term funding, recording an increase of 41 per cent with customer deposits reaching Dh3.7 billion by end of September 2012 against Dh2.62 billion in December 2011. Ajman Bank, which started operations in 2009, now operates with 12 branches spread across the UAE.