Al Ansari Financial Services Announces Q1 2024 Net Profit Amidst Expansion And Digital Growth

Al Ansari Financial Services PJSC (DFM: ALANSARI), a leading entity in the financial sector, has unveiled its financial outcomes for the first quarter of 2024. The disclosed figures highlight a mix of challenges and growth areas within the company's operations amidst fluctuating market conditions. A notable 4.3% decrease in operating income has been attributed to pressures from parallel markets and prevailing uncertainties in the macroeconomic landscape of the region. Despite these hurdles, the company reported a 26% year-on-year decline in net profit after tax, amounting to AED 98.7 million, primarily due to branch network expansion and the new imposition of Corporate Tax.

On a brighter note, total transactions across Al Ansari Financial Services showed a 5.1% increase year-on-year. However, bank note volumes experienced a 9% decrease. Conversely, the Wage Protection System (WPS) volumes surged by 24%, and digital channels saw a significant 25% increase in transactions year-on-year, making up 21% of total outward remittances. The physical presence of Al Ansari Exchange expanded to 259 branches by the end of Q1 2024.

The ongoing integration of Al Ansari Exchange in Kuwait with Oman Exchange is expected to be completed by Q3 2024, with anticipated synergies by Q4 2024. Additionally, the launch of the Al Ansari Digital Wallet is slated for before the year's end, marking another milestone in the company's digital transformation journey.

Rashed A. Al Ansari, Group CEO, expressed optimism despite market challenges, emphasizing the company's commitment to innovation and customer satisfaction. He highlighted the stabilisation of parallel market conditions and the implementation of increased remittance fees as positive indicators for future growth. Mohammad Bitar, Deputy Group CEO, echoed this sentiment, noting a resilient performance in Q1 and pointing out the strategic branch expansion and digital channel growth as key drivers of operational efficiency.

With an EBITDA margin maintaining near 45%, even amidst rising costs, Al Ansari Financial Services is poised for healthy growth in remittance operating income. This optimism is further supported by a positive macroeconomic outlook in the UAE, bolstered by government-led pro-growth initiatives. Both executives reaffirmed their commitment to strategic growth and confidence in delivering enhanced shareholder value.

The financial results for Q1 2024 reflect Al Ansari Financial Services' ability to navigate through market challenges with strategic foresight and operational efficiency. As the company continues to expand its branch network and enhance its digital offerings, it remains focused on meeting its customers' evolving needs while positioning itself for significant future growth.

With inputs from WAM