Ajman Bank, an Islamic bank based in Ajman, yesterday reported a net profit of Dh556,000 compared to a net loss of Dh2 million in the second quarter of 2010.
For the first time since its inception in 2008, the bank achieved a quarterly net profit from its core banking activities.
The bank reported a net loss of Dh7.8 million in the first six months of 2011 compared to Dh15.96 million reported in the same period last year.
"Since launching operations in 2008, Ajman Bank has established a strong presence in the UAE banking sector. The second quarter of 2011 has seen further growth in a number of core business areas, including operating income and customer deposits," said Shaikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank
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In the second quarter the bank's net operating income increased 69 per cent from Dh28.7 million in the first quarter of 2010 to Dh48.5 million in the second quarter of this year.
Income from Islamic financing for the quarter was Dh51.1 million compared with Dh24.9 million for the same period of 2010. Income from Islamic financing for the six months ended June 30, 2011 was Dh92.4 million compared to Dh 45 million in the same period of 2010. Income from investments, fees and commissions grew by 97 per cent in the second quarter of this year.
Ajman Bank's total assets at the end of the second quarter of 2011 stood at Dh4.4 billion, an increase of 38 per cent compared to 3.2 billion as of December 31, 2010.
"Ajman Bank continued to strengthen its core operations in the second quarter of 2011. A focus on the commercial and small business sectors, along with the introduction of innovative, new retail products, leaves the bank well positioned for continued growth," said Mubashar H. Khokhar, Chief Executive Officer, Ajman Bank,
As of June 30, 2011, Ajman Bank's Islamic financing instruments portfolio stood at Dh 3.7 billion compared to Dh.2.7 billion as of December 31, 2010, an increase of 34 per cent.
The bank has been successful in improving its margins on financing and investments and at the same time keeping its cost of funds in check.
Margins on financing improved at least 50 basis points compared to the same period in 2010. Gross return on assets as of June 30, 2011 improved to 2.6 per cent compared to 2.3 per cent in the same period of 2010.
The second quarter of 2011 also saw the launch of Mahra, Ajman Bank's new Ladies Banking division designed to meet the professional requirements and lifestyle needs of women across the UAE.