In a year marked by macroeconomic headwinds and intensifying competition in the financial services sector, Ajman Bank has posted a record Dh440 million in profit before tax for 2024—a dramatic reversal from the previous year’s net loss. According to CEO Mustafa Al Khalfawi, the performance is no accident. “The record profit before tax of Dh440 million in 2024 reflects the success of Ajman Bank’s balance sheet management, successful risk management and transformation initiatives in line with Ajman Bank’s growth strategy,” he said. “This performance was driven by strategic initiatives in our core segments—wholesale inclusive of commercial, government, financial institutions and consumer banking—as well as improved asset quality and strong cost control.”
The bank’s focus on operational efficiency, digital expansion and diversified income streams formed the cornerstone of its turnaround. Underpinning these was a disciplined execution strategy backed by strong internal controls. “The transformation was underpinned by robust risk governance, agile decision-making and an organisation-wide commitment to speed, service and specialisation,” Al Khalfawi added.
This approach aligns with the bank’s broader five-year strategy, which places sustainable growth, risk resilience and customer-centric innovation at the centre of its operating model. The gains come at a time when banks across the UAE have been under pressure to digitise, cut costs and address a rapidly evolving regulatory environment. According to the UAE Banks Federation, the industry as a whole posted steady growth in 2024, but few matched the scale of Ajman Bank’s turnaround.
Growth segments
Looking ahead, Ajman Bank plans to maintain growth by expanding into high-potential segments. “We will continue to focus on strengthening our core business while scaling high-potential growth areas such as commercial banking, SME financing, wealth management and green financing,” he said. Solutions in cash management, trade finance and FX and derivatives are areas of active investment.
These growth plans align with broader market dynamics. The UAE’s Ministry of Economy has forecast increased lending to SMEs and green projects in the next two years, creating an environment conducive to Ajman Bank’s planned initiatives. The country’s push towards sustainability and financial inclusion also plays to the bank’s strengths in Islamic banking.
“Our investment in technology and data analytics will support real-time decision-making, enhance customer targeting and drive operational agility,” Al Khalfawi added. The bank is also pursuing partnerships with fintech and payment providers to expand its ecosystem and build new value propositions.
Balancing payout and investment
Ajman Bank has proposed a 7.25% cash dividend, prompting questions about capital discipline. Al Khalfawi noted that the payout aligns with the bank’s dual mandate: rewarding shareholders while funding future initiatives.
“Our capital planning and capital management frameworks strike a careful balance between shareholder returns and reinvestment in strategic initiatives, including focusing on government related entities, continuation of strong collateralisation, digital transformation, product development and human capital,” he said.
This balance is particularly critical in a rising interest rate environment, where capital preservation and selective investment become key differentiators. Ajman Bank’s decision to continue investing in growth segments without sacrificing shareholder return signals its strengthened financial foundation.
Digital innovation
In a crowded digital banking market, Ajman Bank is focussing on differentiated offerings grounded in Islamic finance principles. Among its most impactful digital initiatives are instant bank account openings and fully digital credit card issuance.
“These innovations have particularly resonated with digitally native users and the SME segment, resulting in increased engagement, faster onboarding, and stronger brand affinity,” Al Khalfawi said. “These are part of our broader ambition to become a fully digitally-enabled Islamic bank that prioritises convenience without compromising our values.”
The bank’s efforts are consistent with broader trends in the UAE banking sector, where mobile-first strategies are becoming the norm. According to a recent KPMG survey, more than 60% of retail customers in the UAE now prefer digital channels for their daily banking needs.
Competitive edge in Islamic finance
With Islamic finance gaining traction across the Gulf, Ajman Bank’s strategy is rooted in its ability to blend ethical banking principles with modern tools. “Ajman Bank distinguishes itself through its unwavering commitment to Islamic banking principles and its ability to blend these values with modern, customer-centric solutions,” he said.
Strategic collaborations have been central to this strategy. “Our partnerships with key players like Mastercard, Visa and Magnati enable us to offer integrated digital solutions while maintaining a strong focus on governance and transparency,” he added.
Our partnerships with key players like Mastercard, Visa and Magnati enable us to offer integrated digital solutions while maintaining a strong focus on governance and transparency
Al Khalfawi
This differentiation is increasingly relevant as regional regulators encourage more Sharia-compliant financial inclusion. With over $3 trillion in global Islamic finance assets, according to the Islamic Financial Services Board (IFSB), the segment offers long-term growth potential, particularly in digitally underserved markets.
Fintech as an accelerator
Rather than seeing fintech as a challenge, Ajman Bank views it as an opportunity. Al Khalfawi said the bank is integrating technologies such as AI, blockchain and predictive analytics to improve risk controls, decision-making and customer experience.
“We are also building strategic alliances with fintechs to co-create solutions while maintaining oversight and adherence to Sharia principles,” he said. “Our goal is to harness the benefits of fintech while safeguarding customer trust and institutional integrity.”
Internally, the bank has reinforced its compliance protocols and cybersecurity infrastructure to support its ambitions. “We have strengthened our internal risk frameworks to ensure responsible innovation,” he said.
Ajman Bank’s cautious yet forward-leaning approach mirrors a broader GCC trend, where banks are partnering with fintech startups to plug capability gaps while avoiding regulatory and operational risk. According to a recent PwC study, more than 70% of Middle East banks are actively exploring such partnerships.
Managing macroeconomic and sectoral risk
Al Khalfawi acknowledged the shifting risk landscape shaped by interest rate volatility, geopolitical uncertainty and credit sector pressures. “To mitigate these risks, Ajman Bank has adopted a proactive risk management approach grounded in diversification, stress testing and strong governance,” he said.
The bank has implemented segment-specific credit strategies with conservative provisioning and early-warning systems. “Our investment in advanced risk assessment tools including Early Warning System, combined with continuous scenario planning, enables us to remain responsive to macroeconomic shifts while protecting our financial position,” he added.
Ajman Bank is also advancing its sustainability and climate risk capabilities as part of its longer-term risk governance. This is in line with the Central Bank of the UAE’s roadmap for sustainable finance, which emphasises climate risk disclosure and capital allocation.
The Road to 2030
Looking further ahead, Al Khalfawi outlined a strategy that positions Ajman Bank as a key player in the UAE’s evolving financial ecosystem. “Over the next five years, our strategy is anchored on sustainable growth, digital leadership and excellence in Islamic banking products,” he said.
The growth agenda is anchored in four Ps: prospects, products, processes and people. “We will continue to expand our presence in high-potential segments including Commercial Banking, government related entities, financial institutions and wealth management, through Islamic and sustainable financing and maximising cross sell opportunities,” he said.
Ajman Bank also intends to broaden its role in national development goals through green finance and financial inclusion. “We envision Ajman Bank playing an increasingly prominent role in the UAE’s financial ecosystem by promoting financial inclusion, supporting green finance and contributing to Emirate-level and national development goals,” he said.
We envision Ajman Bank playing an increasingly prominent role in the UAE’s financial ecosystem by promoting financial inclusion, supporting green finance and contributing to Emirate-level and national development goals
The bank’s ambitions resonate with Vision 2030, the UAE’s overarching plan to diversify its economy, enhance competitiveness and develop a knowledge-based financial system. Ajman Bank is positioning itself as an enabler of these goals through its emphasis on digitisation, ethical banking,and inclusive finance.
Ajman Bank’s 2024 results emphasise a disciplined yet adaptive strategy that prioritises sustainable profitability, risk resilience and digital transformation. With robust governance, an expanding digital ecosystem, and a clear focus on Islamic finance, the bank is positioning itself to navigate economic shifts while contributing to the broader Vision 2030 agenda.
Al Khalfawi succinctly summarised the bank’s aspirations: “Our vision is to be one of the favourite financial services brands in the UAE and the entire region.”
