Al Ansari Financial Services: Profits Surge by 10%
Al Ansari Financial Services reports a 10% rise in net profit, showcasing strong operational performance and strategic expansion.
Summary
Al Ansari Financial Services has reported a robust 10% increase in net profit, driven by strong operational income and strategic expansion plans.
Al Ansari Financial Services PJSC, a leading financial services group in the United Arab Emirates, has announced a remarkable 10% increase in net profit after tax, reaching AED 109 million. This impressive growth is underpinned by a 7% year-on-year increase in operating income, amounting to AED 294 million, which is attributed to enhanced performance across all business lines.
The company's EBITDA saw a significant 13% year-on-year rise to AED 138 million, with an EBITDA margin of 46.8%. This robust financial performance is a testament to the company's strategic focus on expanding its operational capabilities and enhancing its service offerings.
One of the key highlights of the report is the 27% year-on-year growth in the Wage Protection System (WPS) salary disbursals, reaching 2.5 million. Additionally, the digital channels have reported a 16% increase in transactions, now accounting for 24% of the overall outward remittances. This digital transformation is a crucial aspect of Al Ansari's strategy to solidify its market leadership and expand its regional footprint.
Looking ahead, Al Ansari Financial Services is poised for further growth with its strategic acquisitions and expansions. The company has closed the acquisition of BFC Group Holdings W.L.L., and the figures will be consolidated in Q2'25. Furthermore, the acquisition of Al Ansari Exchange in Kuwait is set to be completed by Q2'25, with synergies expected to be realized by Q3'25.
The launch of the Al Ansari Digital Wallet in Q2'25 is another significant development, enhancing the company's digital service offerings and aligning with its ambition to lead in the regional financial services market.
Given the company's strong financial performance and strategic growth initiatives, it is advisable for investors to consider a buy position on Al Ansari Financial Services. The company's robust operational income, strategic acquisitions, and digital transformation efforts position it well for sustained growth in the future.
Source
Summary
Al Ansari Financial Services reported a 10% increase in net profit after tax, reaching AED 109 million, driven by strong operating income and robust performance across all business lines. Operating income rose by 7% year-over-year (YoY) to AED 294 million, contributing to a 13% YoY increase in EBITDA, which amounted to AED 138 million with a margin of 46.8%. Total transactions grew by 1% YoY to 12.5 million, while the value of bank notes transactions increased by 6% YoY to AED 22 billion. The Wage Protection System saw a 27% YoY increase in salary disbursals, reaching 2.5 million. Digital channels experienced a 16% YoY rise in transactions, making up 24% of overall outward remittances. The company is expanding in line with its strategy, with Al Ansari Exchange's physical branches reaching 270 by Q1 2025. Al Ansari Financial Services completed the acquisition of BFC Group Holdings, with figures to be consolidated in Q2 2025, and plans to acquire Al Ansari Exchange in Kuwait by Q2 2025. Additionally, the Al Ansari Digital Wallet is set to launch in Q2 2025.
