Islamic Finance

UAE’s Ajman Bank posts lower first-half profit and a drop in assets


UAE’s Ajman Bank posted 42.969 million dirhams ($11.7 million) in profit for the six months ending June 30, a drop of 51.12% compared to the same period last year.

The Shariah-compliant bank paid up 94.360 million dirhams in impairment charges, an increase of 25.55% year-on-year, according to its bourse filing on Tuesday (July 28).

It said that any changes made to expected credit losses, or ECLs, to estimate the overall impact of COVID-19 is subject to “very high levels of uncertainty as limited forward-looking information is currently available on which to base those changes”.

For the six months, the bank reported a total deferred amount of customer financing of 398.958 million dirhams due to the impact of COVID-19. 73.02% are in its corporate banking portfolio.

Its Islamic financing exposure to COVID-19 was put at 3.857 billion dirhams, 63.79% of which are in consumer banking.

Overall, a 10.47% fall in net operating income, to 278.865 million dirhams, also contributed to its lower profit.

Financing and investing assets, the biggest component of the bank’s income, slid 8.24% to 448.007 million dirhams from 488.245 million dirhams for the same first six months in 2019.

BALANCE SHEET

Ajman Bank’s balance sheet also took a hit.

Assets nudged down by 0.3% to 23.554 billion dirhams from 23.626 billion dirhams at the end of 2019.

The bank’s financing and investment portfolio grew by 3.81% to 17.763 billion dirhams but investments securities decreased 6.01% to 1.898 billion dirhams.

Investment properties took a big hit, down by 53.32% to 365.646 million dirhams.

On the liabilities side, customers’ deposits were almost flat at 14.775 billion dirhams from 14.923 billion dirhams at the end of 2019.

The bank is 26.23% owned by the government of Ajman and 10.48% by Shaikh Humaid Rashed Humaid Alnuaimi, the ruler of the emirate.

 

HOW DID OTHER UAE ISLAMIC BANKS PERFORM FOR H1 2020?

Dubai Islamic Bank posts 2.12 bln dirhams in H1 profit amid 'difficult' Q2

Emirates Islamic posts 143 mln dirhams loss for second quarter

Sharjah Islamic Bank H1 profit slumps on higher provisions

 

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