Al Ansari profit falls 29% to Dh151m as UAE remittance margins tighten
Operating income held steady at Dh635m, but EBITDA fell 15% as margins came under pressure
Dubai: Al Ansari Financial Services reported a 28.7 per cent drop in first-half net profit to Dh151 million, as geopolitical pressures, weaker activity across some remittance corridors and tougher competition squeezed profitability.
The company’s operating income remained broadly stable at Dh635 million, down just 0.5 per cent from the same period last year. However, EBITDA fell 15 per cent to Dh242.8 million, with the EBITDA margin declining to 38.2 per cent from 45 per cent a year earlier.
The results highlight the pressure facing money transfer and financial services businesses as competition from fintech companies intensifies and transaction margins become tighter.
Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services, said: “Maintaining operating income broadly in line with the prior year during a period of temporary disruption across important transaction corridors demonstrates the underlying resilience of our revenue base.”
He added: “While these investments have a measurable effect on current earnings, they are focused on strengthening our capacity, integration and competitive position over the longer term.”
Why did profit fall?
Al Ansari said the decline in profitability was linked to the impact of geopolitical pressures on the travel and tourism sector, volatility across key remittance corridors and a changing revenue mix.
The company also said its operating costs are largely fixed because of regulatory requirements and planned investments in people, branches and systems as it expands regionally.
Despite the pressure, the group said its diversified revenue base helped keep operating income broadly stable.
Net commission income fell 1.4 per cent to Dh312.9 million, but this was partly offset by a 0.4 per cent increase in net gains on currency exchange to Dh322 million.
Al Ansari said activity levels showed a gradual recovery as the first half progressed, supported by improving geopolitical conditions.
Assets reach Dh5 billion
The group’s total assets increased 13 per cent from the end of 2025 to Dh5 billion, reflecting continued investment in its platform and regional expansion.
Al Ansari generated Dh224 million in free cash flow during the first half, while cash conversion remained high at 92 per cent.
Capital expenditure represented 2.9 per cent of operating income, while net current assets remained stable at Dh2 billion, providing the group with financial flexibility, it said.
Mohammad Bitar, Deputy Group CEO, said the group was focused on improving efficiency as it expands.
“Our priorities remain clear: optimising the network, aligning operating processes, strengthening corridor coverage and directing investment towards digital channels, emerging technologies, and areas capable of generating sustainable returns,” he said.
The group said it will continue focusing on cost management, operational efficiency and integrating its regional platform, while using advanced technologies and artificial intelligence to improve efficiency and the customer experience.
