Al Ansari profit falls 29% to Dh151m as UAE remittance margins tighten

Al Ansari Financial Services experienced a 29% drop in first-half net profit, reaching Dh151 million, due to various factors affecting the financial services industry. The decline was primarily driven by geopolitical pressures on the travel and tourism sector, fluctuations in remittance corridors, and intensifying competition from fintech companies.

Despite these challenges, the company's operating income remained stable at Dh635 million, only decreasing by 0.5% compared to the same period last year. However, EBITDA fell by 15% to Dh242.8 million, with the EBITDA margin declining from 45% to 38.2%. Rashed A. Al Ansari, the Group CEO, highlighted the company's resilience in maintaining operating income despite temporary disruptions in important transaction corridors.

The board also approved an interim dividend following robust earnings. The group's diversified revenue base helped cushion the impact, with net commission income falling slightly while gains on currency exchange increased. Total assets reached Dh5 billion, up 13% from the previous year, reflecting ongoing investments in the company's platform and regional expansion.

Net cash flow from operations amounted to Dh224 million, with a strong cash conversion rate of 92%. Capital expenditure was relatively low at 2.9% of operating income. The company aims to improve efficiency, optimize its network, streamline operating processes, and strengthen its corridor coverage, with a focus on digital channels, emerging technologies, and sustainable returns.