The UAE’s Al Ansari Financial Services net profit fell 26% to Dh98.7 million in the first quarter of 2024.
The decline was attributed to branch network expansion and the introduction of corporate tax, the UAE-based currency exchange company said in a statement to the Dubai Financial Market.
Al Ansari recorded a 5.1% increase in Q1 transactions, but its operating income declined by 4.3% to 274.7 million dirhams YoY due to a parallel market in key remittance markets.
“The trends observed in past quarters persist,” the company said. “Challenges posed by the parallel market in key remittance corridors like India, Egypt, and Pakistan led to a 3% year-on-year decline in remittance income during Q1-24.”
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,” he said. “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.”
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.
