Ajman Bank, an award-winning financial services institution, reported strong growth in operating income over the second quarter (Q2) of 2011.

The bank's net income for the three months ending June 30, 2011, reached Dh48.5 million ($13.2 million) compared with Dh28.7 million for same period of 2010, an increase of 69 per cent.

Comparing quarter-on-quarter, Ajman Bank’s income increased by 24 per cent in the second quarter of 2011 compared to Dh41.2 million in the first quarter of 2011. Income from Islamic financing for the quarter was Dh51.1 million compared with Dh24.9 million for the same period of 2010, an increase of 105 per cent, said a statement.

Income from Islamic financing for the six months ended June 30, 2011 was Dh92.4 million compared to Dh45 million in the same period of 2010, an increase of 105 per cent. Income from investments and, fees and commissions grew by 97 per cent and 10 per cent respectively.

Share of profit of customer deposits rose in the first half of 2011 to Dh38.2 million compared to Dh10.9 million in the first half of 2010, an increase of 250 per cent. Enhanced income ameliorates the net loss from Dh15.9 million for the half year ended June 30, 2010 to Dh7.8 million for the half year ended June 30, 2011, a decrease of 51 per cent.

As of June 30, 2011, customer deposits stood at Dh2.87 billion compared to Dh2.02 billion in the same period of 2010, an increase of 42 per cent.

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.

As of June 30, 2011, Ajman Bank’s Islamic financing instruments portfolio stood at Dh3.7 billion compared to Dh2.7 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.

For the first time since its inception in 2008, the bank achieved a quarterly net profit from its core banking activities. The net profit for second quarter 2011 is Dh0.5 million, demonstrating the bank’s transformation towards profitability in its core business.

Sheikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman and chairman of Ajman Bank, said: “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. Through strong leadership and a sound business strategy, the outlook for the bank remains extremely positive.”

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.

Mubashar H Khokhar, chief executive officer, Ajman Bank, said: “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.”  - TradeArabia News Service