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Net profit of Al Ansari Financial Services fell 26% to 98.7 million dirhams ($26.87 million) in Q1 2024. The decline in profit was mainly due to branch network expansion and the introduction of corporate tax, the UAE-based currency exchange company said in a DFM filing.
While total transactions across all services rose 5.1% YoY, its operating income declined by 4.3% to 274.7 million dirhams YoY due to a parallel market in key remittance markets.
Challenges posed by the parallel market in key remittance corridors like India, Egypt, and Pakistan led to a 3% YoY decline in remittance income during Q1 24, it stated.
Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services, said that despite the challenging market environment, it remained focused on its growth strategy. “Looking ahead, we’re encouraged by several key developments. The parallel market conditions in critical markets have stabilised, and the increased remittance fees implemented in April position us for significant future growth. We’re confident these initiatives will translate into improved financial performance in the coming quarters.”
The group maintained an EBITDA margin of 44.6% in Q1 2024.
(Reporting by Bindu Rai, editing by Seban Scaria)
