Ajman Bank Achieves Record-Breaking Profits in 2024, Marking a Historic Turnaround
In a landmark achievement, Ajman Bank has announced its highest annual profits in history, recording a staggering AED 440 million in profit before tax for the year 2024.This represents a remarkable 213% growth compared to the net loss of AED 390 million in 2023, signaling a dramatic turnaround for the institution.
The declaration was made during a Board of Directors meeting chaired by His Highness Sheikh Ammar bin Humaid Al nuaimi, Crown prince of Ajman, Chairman of the Executive Council, and Chairman of the Board of Directors of Ajman Bank. The meeting, held at the bank’s headquarters, also saw the presence of Sheikh Rashid bin Humaid Al Nuaimi, Chairman of the Ajman Municipality and Planning Department and Vice Chairman of the Bank’s Board of Directors.
A Year of Remarkable Performance
The bank’s unprecedented success is attributed to a significant increase in total operating income,which reached AED 1.5 billion, resulting in a net operating income of AED 736 million. Additionally, the return on shareholders’ equity surged to 12.9%, marking an increase of 2,745 basis points, while the return on assets rose to 1.8%, up by 332 basis points.
These results were bolstered by a strengthened balance sheet, with total assets climbing to AED 23 billion, customer deposits reaching AED 19 billion, and total shareholders’ equity standing at AED 3.1 billion.
Leadership’s Vision and Gratitude
His Highness sheikh Ammar bin Humaid al Nuaimi emphasized the bank’s strategic vision, stating, “Ajman Bank’s unprecedented financial results represent evidence of the strength of its strategic vision and its commitment to providing shareholders with sustainable value.” He added, “Ajman Bank continues to play a pivotal role in supporting the growth of the UAE’s economy, and its exceptional success confirms our versatility and ability to adapt to the ever-changing state of the financial sector.”
The Crown Prince also expressed his gratitude to the Board of Directors, senior executive management, and all employees for their dedication and exceptional performance, which he credited as pivotal to the bank’s success.
transformational Strategy and Future Outlook
Mustafa Al-Khalafawy, CEO of Ajman Bank, highlighted the bank’s transformational strategy as a key driver of its success. “Our outstanding performance in 2024 reflects the success of the bank’s transformational strategy to raise value and positive returns for our shareholders,expand our customer base,and invest in our competencies,” he said. Al-Khalafawy also noted the bank’s focus on innovation, sustainable solutions, and addressing troubled assets as critical factors in achieving this milestone.
The Board of Directors has proposed distributing cash dividends of 7.25%, subject to shareholders’ approval at the next General Assembly meeting.
Key Financial Highlights of Ajman Bank (2024)
| metric | 2024 | 2023 | Change |
|—————————|——————–|——————–|——————–|
| profit Before Tax | AED 440 million | AED -390 million | +213% |
| Total Operating Income | AED 1.5 billion | – | - |
| Net Operating income | AED 736 million | – | – |
| Return on Equity | 12.9% | - | +2,745 basis points|
| Return on Assets | 1.8% | – | +332 basis points |
| Total Assets | AED 23 billion | – | – |
| Customer Deposits | AED 19 billion | – | – |
| Shareholders’ Equity | AED 3.1 billion | – | – |
ajman Bank’s historic performance in 2024 underscores its resilience,strategic foresight,and commitment to driving sustainable growth. As the bank continues to innovate and adapt, it remains a cornerstone of the UAE’s financial sector, poised for even greater achievements in the years to come.
Headline: unprecedented Gains: A Dialog with banking specialist Dr. Sarah al Murad on Ajman Bank’s Historic Turnaround
Introduction:
as economies in the Middle East continue to gain traction, one financial institution has just made waves with an astounding annual profit increase.In a market-shaking move, Ajman Bank has posted AED 440 million in profit before tax in 2024, marking a staggering 213% betterment over last year’s net loss. To shed light on this remarkable achievement, we sat down with Dr. Sarah Al Murad, a renowned banking specialist and economist with extensive experience in the UAE’s financial sector.
Ajman Bank’s Record-Breaking Performance
Senior Editor (SE): Dr. Al Murad, Ajman Bank’s 2024 financials are nothing short of exceptional. What factors do you believe contributed to this remarkable turnaround?
Dr. Sarah Al Murad (SAM): The bank’s impressive performance can be attributed to several factors. Firstly, the leadership’s strategic vision and commitment to driving enduring value have played a pivotal role. Additionally, the focus on innovation, sustainable solutions, and addressing troubled assets has been evident in their approach. the bank’s prosperous transformational strategy has also led to a notable expansion of its customer base, further contributing to these remarkable results.
SE: Ajman Bank’s total operating income surged to AED 1.5 billion, and net operating income reached AED 736 million.How crucial are these improvements to the bank’s overall success?
SAM: These improvements are indeed critical to Ajman Bank’s overall success. The significant increase in total operating income and subsequent net operating income reflect the bank’s robust business model, enhanced revenue streams, and improved cost management. This ultimately translates to greater profitability and solidifies the bank’s financial standing.
Growth and Asset Management
SE: The bank’s total assets climbed to AED 23 billion, and customer deposits reached AED 19 billion. How do you assess these increases in terms of banking sector growth and competitiveness?
SAM: The ample growth in total assets and customer deposits indicates that Ajman Bank has strengthened its position in the competitive banking sector. These increases demonstrate enhanced customer confidence,effective liquidity management,and successful aggregation of funds. As a result, the bank is better equipped to extend credit, support economic growth, and generate more income streams.
SE: We’ve seen a significant rise in return on equity (12.9%) and return on assets (1.8%). How crucial are these metrics to a bank’s overall performance and shareholder value?
SAM: Return on equity (ROE) and return on assets (ROA) are indeed vital metrics for measuring a bank’s performance and creating shareholder value. A higher ROE indicates that the bank generates more profit relative to shareholders’ investments, while a higher ROA suggests improved asset utilization and efficiency in generating profits.These metrics collectively showcasing Ajman Bank’s ability to maximize profits from its equity and assets, ultimately benefiting both the bank and its shareholders.
Leadership and Future Outlook
SE: His Highness Sheikh Ammar bin Humaid Al Nuaimi has emphasized the bank’s strategic vision and commitment to providing shareholders with sustainable value. How essential is strong leadership in driving such exceptional results?
SAM: Strong leadership plays an indispensable role in driving exceptional results, particularly in the financial sector. Sheikh Ammar bin Humaid Al Nuaimi’s leadership, coupled with the dedication and exceptional performance of the Board of Directors and senior executive management, has been instrumental in Ajman Bank’s remarkable turnaround. This alignment of vision and commitment from the top has undoubtedly fueled the bank’s success.
SE: The bank’s CEO, Mustafa Al-Khalafawy, highlighted the importance of innovation, sustainable solutions, and addressing troubled assets as critical factors in achieving this milestone. How does Ajman Bank distinguish itself through these focus areas?
SAM: Ajman Bank sets itself apart by embracing innovation as a strategic driver for growth and sustainability. Their commitment to developing sustainable solutions reflects a forward-thinking approach to responsible banking, prioritizing long-term growth over short-term gains.Additionally, their focus on addressing troubled assets demonstrates proactivity in managing risks and maintaining the bank’s financial health, ultimately instilling confidence among stakeholders.
Prospects and Dividends
SE: The Board of Directors has proposed distributing cash dividends of 7.25%, subject to shareholders’ approval. How do you foresee investors reacting to this proposal, given the bank’s exceptional performance?
SAM: With the bank posting exceptional profits and demonstrating significant growth, investors are likely to view the proposed dividend as a testament to Ajman Bank’s strong financial performance and commitment to rewarding shareholders. Given the impressive results, I anticipate a positive reception to the dividend proposal, further bolstering investor confidence in the bank.
SE: Dr. Al Murad,what trends or challenges do you see on the horizon for Ajman Bank,and how well-positioned is it to navigate them?
SAM: looking ahead,I expect the banking sector to face challenges such as regulatory pressures,geopolitical risks,and evolving customer expectations. However, Ajman Bank’s remarkable turnaround and ability to adapt to changing market conditions position it well to tackle these challenges. By continuing to innovate,focus on sustainability,and maintain its pledge to providing shareholder value,Ajman Bank is poised for even greater achievements in the years to come.