Ajman Bank Posts 24% Profit Growth in Q1 2025
Ajman Bank's Q1 2025 results showcase robust financial growth, marking a 24% increase in profit before tax.
Summary
Ajman Bank reports a 24% growth in Q1 2025 profit before tax, driven by strategic initiatives and a resilient economy.
Ajman Bank PJSC has reported a significant financial milestone, achieving a profit before tax of AED 145 million in the first quarter of 2025. This marks a 24% increase compared to the previous year, underscoring the effectiveness of the bank's strategic initiatives and the resilience of the national economy. The announcement was made during a board meeting chaired by His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of the Board of Ajman Bank.
The meeting, held at Ajman Ruler’s Court, was also attended by Sheikh Rashid bin Humaid Al Nuaimi, Vice Chairman of the Bank’s Board. The board discussed various financial and administrative matters, reviewed routine business activities, and issued decisions accordingly.
Ajman Bank's net operating income for Q1 2025 rose by 2% to AED 199 million, reflecting the continued strength in its core business performance. This growth is attributed to strong recoveries, cost rationalization, and increased efficiencies through digitization and automation of IT infrastructures. Furthermore, the bank's total assets grew by 7% to AED 25 billion, customer deposits increased by 8% to AED 21 billion, and total shareholder equity stood at AED 3.1 billion.
The bank's capital position and asset quality have shown solid improvement, with a Capital Adequacy Ratio (CAR) of 18.2% and Tier 1 Capital at 17.0%. The Return on Shareholder Equity (ROE) improved to 17.4%, and the Return on Assets (ROA) stood at 2.3%. Additionally, the Non-Performing Loan (NPL) Ratio improved to 9.7%, down from 9.9% at the end of 2024.
His Highness Sheikh Ammar bin Humaid Al Nuaimi commented on the bank's progress, stating that it reflects the strength of their vision for Ajman’s financial sector. The bank's strategic focus on digital transformation and cost efficiency has been pivotal in achieving these results.
Given the strong financial performance, robust asset growth, and strategic initiatives in place, investors might consider a buy recommendation for Ajman Bank. The bank's commitment to innovation and efficiency positions it well for future growth, making it an attractive option for investors looking to capitalize on the growth of the UAE's banking sector.
Source
Summary
Ajman Bank reported a profit before tax of AED 145 million for the first quarter of 2025, marking a 24% growth. The bank's net operating income increased by 2% to AED 199 million, supported by strong recoveries, cost rationalization, and enhanced efficiencies through digitization and automation. The bank's total assets rose to AED 25 billion, customer deposits increased to AED 21 billion, and total shareholder equity reached AED 3.1 billion. The capital adequacy ratio was 18.2%, with Tier 1 capital at 17.0%. Return on shareholder equity was 17.4%, and return on assets was 2.3%. The non-performing loan ratio improved to 9.7%. The board meeting, chaired by His Highness Sheikh Ammar bin Humaid Al Nuaimi, discussed various financial and administrative matters. Sheikh Ammar attributed the bank's strong performance to strategic initiatives and the resilience of the national economy.
