Dubai's Al Ansari Financial Services racks up Dh133m in Q1-2023 net profit

Dubai: In its first results after the IPO and DFM listing, Al Ansari Financial Services checked in a profit of Dh133 million, higher by 7.2 per cent, with significant gains coming through in remittance volumes. The other major contributor was the exchange income from its Bank Notes and pre-paid card products.

Al Ansari was also able to sight steady increases from its digital channels. This marks the group’s fourth consecutive net profit increase in the Q1 period. Al Ansari's IPO was noteworthy for being one from a family business and as a precursor to more such listings from such UAE entities.

"The Group intends to distribute a minimum of Dh600 million for FY-2023 to be paid out semi-annually with the first-half expected to be distributed in October 2023 and the second in April 2024," said a statement.

Operating income for the quarter came to Dh287 million, up 9.1 per cent. Al Ansari’s free cash flow by end March was at Dh140.71 million.

The higher numbers from Bank Notes resulted from the tourism boom Dubai and the UAE had experienced through the period, and enough to deliver an operating income gain of 36.8 per cent for the company. The Corporate Business operations saw transaction gains of 47.6 per cent and reaching Dh27.64 billion.

Going 'capex-light' helps

“2023 is off to a fantastic start, building on the previous year’s strong financial and business performance," said Rashed Ali Al Ansari, Group CEO.  Our integrated offering, multi-channel approach, diverse and growing customer base and capex-light business model have supported our profitable growth over the last three months.

"We expect to further strengthen our market leadership position in our home market within the remittance and banknotes market by increasing our physical branches."

The Group is still in the process of fully acquiring Al Ansari Exchange Kuwait, which in turn has completed the acquisition of Oman Exchange - Kuwait. On completion, the acquisition will give the Group a strong presence in the sixth-largest outward personal remittances market globally based on 2021 numbers.