Al Ansari Financial Services PJSC (DFM: ALANSARI), (the Group), today reported its financial results for the first quarter of 2024 (Q1’24).
According to the First Quarter 2024 Financial Results, operating income declined by 4.3%, attributed to pressure from the parallel market within major remittance corridors and prevailing macroeconomic uncertainty in the region. Net profit after tax decreased by 26% YoY to AED 98.7 million, mainly due to branch network expansion and the introduction of Corporate Tax. Total transactions increased by 5.1% YoY, while bank notes volume dropped by 9%. Wage Protection System (WPS) volumes grew by 24%. Digital channels reported a 25% YoY increase in transactions, constituting 21% of outward remittances. \
Al Ansari Exchange's physical branches reached 259 by Q1 2024. Integration of Al Ansari Exchange in Kuwait with Oman Exchange is ongoing, expected to be consolidated into Al Ansari Financial Services by Q3 2024 with synergies realized in Q4 2024. The launch of Al Ansari Digital Wallet is planned before year-end.
Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services, expressed confidence in the company's ability to adapt and thrive amidst challenging market conditions. Despite the hurdles, he emphasized the organization's dedication to exceeding customer expectations through innovative solutions and a focus on growth. Al Ansari highlighted the positive impact of a diversified portfolio and ongoing efforts to navigate the market environment. He noted several promising developments, including stabilization of parallel market conditions and increased remittance fees, positioning the company for future growth. Al Ansari reassured stakeholders of the company's commitment to transparency and pledged to provide regular updates as they navigate this period of growth.
Mohammad Bitar, Deputy Group CEO of Al Ansari Financial Services, praised Q1 2024 performance despite a 4.3% decline in operating income. Transaction volume surged by 5.1% YoY, with digital channels up 25%. Operating income improved by 2.2% from the previous quarter. Branches expanded to 259 locations. EBITDA margin remained steady at 45%. Bitar anticipates remittance income growth, fueled by fee increases and easing parallel market challenges. He's optimistic about UAE's macroeconomic outlook, driven by government initiatives, reaffirming the company's commitment to strategic growth and shareholder value.
News Source: Emirates News Agency
