Al Ansari Financial Services reported a 15.7% decline in net profit to Dh495 million in 2023, citing a temporary drop in the remittance segment and increased expenses as contributing factors.
The company anticipates that the recent approval to increase remittance fees will help offset these costs and improve financial performance in the future. Headwinds in major remittance markets led to an 8% decrease in remittance operating income, but strong diversification resulted in a 9% increase in non-remittance operating income, partially mitigating the decline.
Overall, total operating income saw a marginal 1.9% decrease, reflecting the company’s adaptability and success in expanding beyond remittances.
Al Ansari will distribute a minimum dividend of Dh600 million (8 fils per share) per the 2023 dividend policy, with shareholders to approve the proposal at the upcoming General Assembly Meeting.
“The Foreign Exchange and Remittance Group (FERG) has obtained approval for exchange houses under the jurisdiction of UAE authorities to implement an optional strategic fee adjustment, allowing for a minimum increase of 15%, said Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services. “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.”