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Al Ansari Financial Services PJSC (DFM: ALANSARI), (the Group), today reported its financial results for the first quarter of 2024 (Q1’24).
According to First Quarter 2024 Financial Results, operating Income saw a 4.3% decline due to the pressure from the parallel market within major remittance corridors and the uncertainty prevailing macroeconomic conditions in the region.
Net profit after tax for the quarter declined 26% YoY to AED 98.7 million mainly driven by the expansion in the branch network and the introduction of Corporate Tax.
Total transactions increased by 5.1% YoY.
Bank notes have witnessed a drop in volumes amounting to 9%.
Wage Protection System (WPS) volumes saw a growth of 24%.
Digital channels reported an increase of 25% YoY in the number of transactions conducted across the Group’s digital platforms, accounting for 21% of the overall outward remittances. Al Ansari Exchange’s total number of physical branches reached 259 by end of Q1 2024.
Al Ansari Exchange in Kuwait integration with Oman Exchange is still ongoing, to be consolidated into Al Ansari Financial Services by Q3 2024, with synergies to be realised in Q4 2024.
Al Ansari Digital Wallet is set to be launched before the end of year. Commenting on the results, Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services, said: "Despite the challenging market environment, Al Ansari Financial Services remains dedicated to exceeding our customers’ evolving needs through innovative solutions that deliver a seamless experience, with a focus on its growth strategy. "We started the year with results that reflect the positive impact of our diversified portfolio and ongoing efforts to navigate the challenging market environment. Looking ahead, we’re encouraged by several key developments. The parallel market conditions in critical markets have stabilised, and the increased remittance fees implemented in April position us for significant future growth. We’re confident these initiatives will translate into improved financial performance in the coming quarters. As always, we remain committed to transparency and will continue to update the market on our progress as we navigate this exciting period of growth." Mohammad Bitar, Deputy Group CEO of Al Ansari Financial Services, said: "I’m pleased to announce a resilient performance in Q1 2024. We executed our strategy well, our diversified portfolio remains strong, and we’re seeing positive signs in outward remittances. Total operating income reflects these trends, declining modestly 4.3%, yet resulting in a significant rise in transactions, up 5.1% YoY. It is worth noting that, compared to the previous quarter, we saw a 2.2% increase in operating income. This is a clear sign that the challenge posed by the parallel market is beginning to abate. Digital channels are thriving, with a 25% YoY transaction increase, improving customer experience and reducing costs. Branch expansion continues strategically, reaching 259 locations by the end of the period. Our operational efficiency remains high, with a steady EBITDA margin of near 45% even in a rising cost environment. We expect healthy growth in remittance operating income, especially as the fee increase comes into effect in the second quarter and the challenge of the parallel market recedes. Our confidence is bolstered by a positive macroeconomic outlook in the UAE driven by pro-growth government initiatives. We are firmly committed to our strategic growth agenda and remain confident in our ability to unlock greater shareholder value."
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