The UAE-based currency exchange company Al Ansari Financial Services said net profit fell 32.8% year-on-year (YoY) to 107 million UAE dirhams ($29.13 million) in the fourth quarter of 2023.

The profit decline was due to depreciation charges associated with the branch network expansion and a temporary decrease in outward personal remittances to major receiving countries.

Operating income fell 11.4% YoY to AED 269 million in Q4 2023, driven by a drop in the remittance business.

Net profit fell  15.7% YoY to AED 495 million due to a temporary drop in the remittance segment and increased expenses.

Operating income declined 1.9% YoY to AED 1.13 billion, attributed to a decline in the remittance business, offset by a 9% YoY increase in demand across all other products and services.

The recently announced approval to increase remittance fees will help offset these costs and strengthen financial performance in the future, the company said in a statement.

The company’s board of directors recommended a dividend distribution of AED 300 million or AED 0.04 per share for the second half of 2023, pending the approval of the upcoming annual general meeting.

The total dividend payment will reach AED 600 million for last year.           

(Editing by Brinda Darasha;