Islamic Finance

UAE’s Shariah-compliant Ajman Bank third-quarter profit drops 45.5% as impairment charges soar


Ajman Bank posted a 45.47% plunge in third-quarter profit as impairment charges and expenses soared.

The bank reported 22.26 million dirhams ($6.06 million) in net profit for the three months ending September 30 compared to 40.82 million dirhams in the same period last year.

Net income from financing and investment rose 28.11% to 251.92 million dirhams, the bank reported in a bourse filing on Sunday (October 27).

54% of this income, or 136.39 million dirhams, came from ijarah-based products, followed by 45.22%, or 113.92 million dirhams based on murabahah.

Income growth was dragged down by a 737.21% surge in impairment charges for financial assets, to reach 75.78 million dirhams.

Expenses also rose, by 83.96% to 31.2 million dirhams.

The bank’s assets rose by 7.2% to 24.28 billion dirhams from 22.64 billion dirhams at the end of 2018.

Customer deposits dropped by 13.75% to 1484 billion dirhams.

($1 = 3.6725 Emirati dirhams)

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