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Al Ansari group posts Dh495 million profit in 2023

The company announces full-year minimum dividend of Dh600 million (8.0 fils per share), half of which had already been paid out

Al Ansari Financial Services reported on Thursday a net profit of Dh495 million for 2023 and announced a full-year minimum dividend of Dh600 million, half of which had already been paid out.

In a statement, the company said: “In accordance with the 2023 dividend policy of the group, a minimum dividend of Dh600 million (8.0 fils per share) will be distributed, resulting in an annual dividend yield of 7.74 per cent based on the share price of Dh1.03.”

In November 2023, the Dubai-based group disbursed a cash dividend of Dh300 million (4.0 fils per share) for the first half of the year. The remaining portion of the 2023 dividend, amounting to Dh300 million (4.0 fils per share), is scheduled for payment in April 2024.

A 15.7 per cent year-over-year decline in net profit to Dh495 million from Dh595 million was due to a temporary drop in the remittance segment and increased expenses. The recently announced approval to increase remittance fees will help offset these costs and strengthen financial performance in the future, the leading financial services group, which operates Al Ansari Exchange, said.

Operating income for the group, which is listed on the DFM, showed a marginal decline for the full-year 2023 of 1.9 per cent year on year, attributed to a decline in the remittance business that was offset by a 9.0 per cent increase in demand across all other products and services. “Headwinds in major remittance markets (such as India, Egypt, Pakistan) caused an 8.0 per cent drop in remittance operating income. However, strong diversification drove an overall 9.0 per cent increase in non-remittance operating income, largely mitigating the decline. Notably, transactions across all services grew,” the statement said.

Mohammad A. Al Ansari, chairman of Al Ansari Financial Services, said the group has successfully weathered the storm in the face of a challenging economic environment and emerged from FY 2023 stronger and more resilient than ever. “As we look to the future, Al Ansari Financial remains steadfast in its commitment to upholding the highest standards of excellence and contributing positively to financial inclusivity. Our focus on innovation and customer satisfaction will continue to be the driving force behind our success.”

Rashed A. Al Ansari, group CEO of Al Ansari Financial Services, said: “Today, I am delighted to share a pivotal development as part of our comprehensive 6-pillar growth strategy. The Foreign Exchange and Remittance Group (FERG) has obtained approval for exchange houses under the jurisdiction of UAE authorities to implement an optional strategic fee adjustment, allowing for a minimum increase of 15 per cent. This strategic move aligns seamlessly with our commitment to sustainable expansion and is anticipated to exert a substantial positive influence on our financial performance, directly impacting our bottom line and bolstering overall profitability.”

Al Ansari Exchange’s total number of physical branches reached 256 by end of 2023 while its integration with Oman Exchange in Kuwait is still ongoing, to be consolidated into Al Ansari Financial Services by Q1 2024, with synergies to be realised Q2 2024. issacjohn@khaleejtimes.com