Al Ansari continues to expand its physical network in the UAE, and will be introducing a 15 per cent remittance fee hike as part of an industry grouping deicsion. Image Credit: Shutterstock

Dubai: Al Ansari Financial Services will be paying another Dh300 million in April after the Dubai company confirmed net profits of Dh495 million for 2023. This compares with a profit tally of Dh595 million a year ago.  

The full-year minimum dividend totals Dh600 million (at 8 fils per share) will be distributed, which works out to an annual dividend yield of 7.74 per cent based on its share price of Dh1.03. In November last, the group had paid out Dh300 million for the first-half of 2023.)

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"The dividend policy for subsequent years outlines a commitment to distribute a minimum of 70 per cent of distributable profits," said a statement. "This dividend strategy reflects the Group's robust financial position and its confidence in generating substantial cash flows in the future."

Net profit decline

The 15.7 per cent year-over-year decline in net profit was 'due to a temporary drop in the remittance segment and increased expenses," the Dubai headquartered entity added. "The recently announced approval to increase remittance fees will help offset these costs and strengthen financial performance in the future."

15% fee hike

The currency exchange operations will from early April be introducing a 15 per cent remittance fee hike, a decision made after the UAE industry grouping FERG approved the first such hike in 5 years.

"This strategic move aligns seamlessly with our commitment to sustainable expansion and is anticipated to exert a substantial positive influence on our financial performance, directly impacting our bottom-line and bolstering overall profitability," said Rashed Al Ansari, Group CEO of Al Ansari Financial Services. 

"As we implement these changes, we emphasise transparent communication with our valued stakeholders. Clear and open dialogue will be integral to ensuring a smooth transition and fostering positive relationships with our clients."

Al Ansari added 25 new branches during 2023.

Digital gains

On the digital side, which is seen as the lever for future growth, the group recently received the 'digital wallet' license from the UAE Central Bank. "Digital channels reported a 27.5 per cent year-on-year growth in the number of transactions conducted across the Group's digital platforms, accounting for 20 per cent of the overall number of transactions," the statement added.