The Q2 2023 net profit of UAE-based exchange house Al Ansari Financial Services declined 10.7% to 130.3 million dirhams ($35.48 million) compared with AED 145.8 million in the same period last year.

The profit fell on higher depreciation charge as a result of an expansion in the branch network and increasing finance costs due to interest payment on an AED 300 million term loan drawn in December 2022.

EBITDA income declined 8.3% year-on-year to AED 147 million in Q2, driven by higher operating costs on network expansion, rising costs across the industry and lower margin on the remittance business, the company said in a statement to Dubai Financial Market on Thursday.

Net profit for first half of 2023 fell 2.5% year-on-year to AED 263 million on lower remittance margins, higher costs and an increase in financing costs.

Capital expenditure increased by 62% year-on-year to AED 20 million as the group continued to invest as part of its growth strategy.

The company’s board reaffirmed a payout of AED 600 million as dividend for 2023.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)