UAE’s Shariah-compliant Ajman Bank saw its profit for 2019 tumble by 50% due to higher expenses.
The bank’s profit for the full-year 2019 was 84.4 million dirhams ($22.98 million), down 50.36% from 170.03 million dirhams in 2018, it reported in a bourse filing on Wednesday (Feb 12).
Ajman Bank’s 16.3% increase in net operating income could not offset its 46.39% rise in expenses that reached 551.63 million dirhams compared to 376.84 million dirhams in 2018.
Half of the bank’s expenses went to impairment charges. This is considerably higher than in 2018 when 29.88% of its expenses were paid out as impairment charges.
Assets nudged up slightly by 4.33% to 23.63 billion dirhams.
Total financing and investing grew by 4.94% to reach 17.11 billion dirhams.
Liabilities saw a similar volume of growth of 4.53% to 21.11 billion dirhams. This growth was propped by liabilities due to banks and other financial institutions, that rose by 116.46% to 5.733 billion dirhams. Customer deposits actually fell by 13.26% to 14.92 billion dirhams.
Ajman Bank is 26.23% owned by the government of Ajman.
($1 = 3.6725 dirhams)
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