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UAE: Al Ansari Group posts Dh263 million in H1 net profit

The group also confirms the distribution of the promised minimum of Dh600 million in cash dividends to shareholders

Al Ansari Financial Services, a leading integrated financial services group in the UAE and the parent of Al Ansari Exchange, reported a net profit of Dh263 million for the first half of 2023.

In a statement, the DFM-listed company said operating income for the group increased by 5.0 per cent year on year (YoY) to Dh578 million in H1 2023, on robust demand across all products with significant contribution from offerings and services to corporate customers. The group also confirmed the distribution of the promised minimum of Dh600 million in cash dividends to shareholders.

EBITDA in the first half held steady at Dh299 million compared to H1 2022 despite an increase in costs. The increase in costs during the period is directly related to the opening of 15 new branches since H1 2022, in line with the group’s organic expansion plans. Costs have also increased as a result of the rising cost environment, a factor impacting the exchange industry across the UAE. Net profit of H1 was down 2.5 per cent due to reduced remittance margins, the company said.

The statement noted that an increase in the number of transactions was predominantly driven by very strong demand from the corporate business segment underpinned by expansionary economic conditions in the UAE. It was also owed to a strong increase in the bank notes business including multi-currency Prepaid Cards on the back of the tourism boom and the peak holiday season.

Rashed A. Al Ansari, group CEO of Al Ansari Financial Services, said the group’s focus since the start of the year has been on executing a growth strategy while continuing to produce robust financial results. “I am pleased to say that we have delivered on both fronts. As the UAE economy continues to grow at a very healthy pace, our diverse offerings served us well, with strong demand from different customer segments, notably SMEs, and inbound and outbound tourism. This has contributed to sustained top-line growth.”

Al Ansari said the group’s efforts to diversify the sources of revenue are contributing towards further enhancing the resilience of its business model. “We are firing on all cylinders across our businesses. We are investing in our domestic expansion while also expanding our footprint in other promising GCC markets. Subject to regulatory approvals and other completion-related processes, we are poised to enter the Oman market, our second foray outside UAE, following Kuwait, by acquiring a controlling stake in one of the leading exchanges in the Sultanate,” he said.

“Given our robust financial position and our confidence in further unlocking shareholder value as we boldly execute our growth agenda, the Board is confirming the distribution of the promised minimum Dh600 million in cash dividends to our shareholders,” said Al Ansari.

Mohammad Bitar, deputy group CEO of Al Ansari Financial Service, said the group is seeing strong demand for its relatively new offerings, while it continues to sustain its market leadership position in core offerings, remittances, and banknotes.

“Our effort to grow our B2B business is paying off. The value of transactions surpassed Dh54 billion driven by strong demand from corporate customers for remittances, WPS, bill collection, and end-to-end cash management. We anticipate the robust growth momentum to continue for the remainder of the year,” said Bitar.

Bitar noted that the Bank Notes business performed exceptionally on the back of the strong demand from inbound tourists, high footfall in prime locations, including malls, as well as an increase in the number of people travelling abroad. “We are very pleased with the exceptionally strong performance of the Travel Card product, a testament to our success in launching and continuously enhancing our products to satisfy customer needs. WPS has also delivered a strong performance, driven by an increase in the number of customers as well as wage disbursals.”

issacjohn@khaleejtimes.com

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