Ajman Bank expects retail banking to contribute 25-30 per cent to its revenue in 2009 and may buy income generating real estate assets on a selective basis, according to the bank's chief executive officer.
"2009 will be a difficult year for all banks, financial institutions and mainly for those people who are involved in the real estate sector. But our focus is on strengthening the retail business, which we believe will contribute somewhere between 25 and 30 per cent to our revenues this year," Ajman Bank's CEO Yousif Khalaf told Emirates Business yesterday after signing an escrow account agreement with Ajman Real Estate Regulatory Agency (ARRA).
"We started offering auto and personal finance, and have even entered the credit card business. We are offering the same products offered by other banks, but at a very competitive rate. Besides, we are careful that they are supported by good security."
Ajman Bank is also working to attract more deposits to support its growth, with deposits crossing Dh250 million. He said the bank is extremely liquid and has deposits with other Islamic banks.
Ajman Bank has a negligible financing to debt ratio, according to Khalaf.
Asked if the bank will seek access to the UAE Central Bank's loan facility, Khalaf said: "We have not been party to that because the mechanism that they have introduced is based on the percentage of loans to deposits and we are not benefiting from this."
Ajman bank recorded a profit of Dh3m in the first year of operations in 2008. Its assets totalled over Dh1bn at the end of the year and had liabilities worth Dh16.36m. The bank listed on the Dubai bourse in June 2008.
Ajman News, March 2009 from Emirates 24X7
