Al Ansari Financial Services (AFS), a leading financial services provider in the United Arab Emirates, reported a net profit of AED 98. 7 million for the first quarter of 2024 (Q1 2024). This represents a 26% decrease compared to the AED 133 million net profit achieved in Q1 2023.
The decline in profitability is attributed to two key factors. AFS underwent a significant branch network expansion during Q1 2024, which resulted in increased operational costs. Additionally, the recent introduction of corporate tax in the UAE impacted the company’s bottom line.
Despite the decrease in net profit, AFS witnessed a positive growth in overall transactions. The company reported a 5. 1% year-on-year (YoY) increase in total transactions across all its services. This growth was primarily driven by a 24% surge in Wage Protection System (WPS) transactions, indicating a rise in employment activity within the UAE.
AFS’s digital channels also continued to flourish in Q1 2024. The company reported a 25% YoY growth in the number of transactions conducted through its digital platforms. Digital transactions now account for a significant portion (21%) of AFS’s outward remittances, highlighting the increasing adoption of digital financial services in the region.
One particular area that experienced a decline was bank notes. AFS reported a 9% drop in bank note volumes during Q1 2024. This could be attributed to a number of factors, including fluctuations in global travel patterns and the increasing popularity of digital money transfer services.
Looking ahead, AFS remains optimistic about its future prospects. The company’s expansion into new markets, its focus on digital transformation, and its commitment to providing innovative financial solutions position it well for continued growth in the ever-evolving financial landscape. The successful integration of its recent acquisition in Oman is expected to generate synergies in the latter half of 2024, further bolstering AFS’s regional presence.
