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The UAE-based lender Ajman Bank saw a 66% surge in operating income for the full year 2023, although it posted a net loss due to one-off provisions.
Total operating income reached 1.56 billion dirhams ($424.5 million) during the year, up from AED 942 million in 2022, the bank reported on Wednesday. Net operating income also jumped to AED 857 million, supported by strong growth in assets, which reached AED 24.9 billion.
However, the one-off provisions booked in the fourth quarter of 2023, aimed at improving the bank’s asset quality, resulted in a one-off net loss of AED 390 million ($106 million) for the full year 2023. In 2022, the bank made a net profit of AED 162 million.
“These provisions are expected to be one-off, have addressed the required asset quality issues and made our portfolio healthier,” the bank clarified.
“The decision to build on provisions, resulting in a one-off loss, reflects our prudent approach to risk management and our dedication to maintaining a robust balance sheet,” added Mustafa Mohammed Saeed Al Khalfawi, CEO of the bank.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
