Al Ansari Financial Services' Net Profit After Tax Surges 10% To AED 109 Million Underpinned By Strong Operating Income And Robust Performance Across All Business Lines

(MENAFN- Mid-East Info) Financial and Operational Highlights:

• 7% YoY increase in Operating Income to AED 294 million attributed to an increase across all business lines.
• 13% YoY increase in EBITDA to AED 138 million with an EBITDA Margin of 46.8% due to increase in operating income.
• Net profit after tax increased by 10% YoY to AED 109 million due to notable increase in operating income.
• Total Transactions increased by 1% YoY to 12.5 million transactions.
• Bank Notes value of transactions reported a 6% increase YoY to AED 22 billion.
• Wage Protection System (WPS) number of salary disbursals saw a growth of 27% YoY reaching 2.5 million.
• Digital channels reported an increase of 16% YoY in the number of transactions conducted across the Group's digital platforms, accounting for 24% of the overall outward remittances.

Expansion in line with the Group's strategy and ambition, solidifying its market leadership position and regional plans.

• Al Ansari Exchange's total number of physical branches reached 270 by Q1'25.
• Al Ansari Financial Services closed the acquisition of BFC Group Holdings W.L.L. The figures will be consolidated in Q2'25.
• Al Ansari Exchange in Kuwait will be acquired by Al Ansari Financial Services by Q2'25, with synergies to be realised by Q3'25.
• Al Ansari Digital Wallet is set to be launched in Q2'25.

Dubai, UAE – May 2025: Al Ansari Financial Services PJSC (DFM: ALANSARI) (“the Group”), the largest non-banking financial services provider in the GCC and parent company of Al Ansari Exchange, has delivered an outstanding performance in the first quarter of 2025 (“Q1'25”), reporting a 7% year-on-year (YoY) surge in operating income to AED 294 million.

This impressive growth, achieved despite persistent geopolitical headwinds, reinforces the Group's resilience, market leadership and the success of its long-term strategy to drive sustainable growth by capitalising on the UAE's and wider GCC's robust economic momentum.

Financial Highlights:

In AED thousands (unless otherwise stated)

Q1'25

Q1'24

% change (YoY)

Operating Income	294,204	274,726	7%
EBITDA	137,666	122,415	13%
EBITDA Margin (%)	46.8%	44.6%
Net Profit after Tax	108,854	98,744	10%
Earnings per Share	0.0145	0.0132	10%
Free Cash Flow (FCF)	132,577	114,838	15%

Operational Highlights

	Q1'25	Q1'24	Change (unit) (YoY)
No. of physical branches in UAE	270	259	11 new branches since Q1'24
Total No. of transactions	12.5 mn	12.0 mn	1%
Digital Channels – No. of transactions	1.3 mn	1.1 mn	16%

Q1'25 FINANCIAL PERFORMANCE COMMENTARY

• Strong performance across all revenue streams and efficient cost management has led to a Net Profit after tax of AED 109 million, representing a 10% YoY growth.
• EBITDA margin witnessed an increase to 46.8% in line with the rise in operating income despite a complex operating environment characterised by increased costs and geopolitical tensions in the region.
• The Group's strategic focus on digital transformation and optimised branch network expansion resulted in a 33% reduction in Capital Expenditure (CAPEX) for Q1'25, with a Free Cash Flow of AED 133 million and a 96% EBITDA to cash conversion rate.

Q1'25 OPERATIONAL PERFORMANCE COMMENTARY

• The total number of transactions for Q1'25 grew by 1% compared to the same period last year, reaching a 12.5 million transactions.
• Improved conditions across key remittance corridors have strengthened the operating environment; however, the market continues to navigate pressures from certain fintech practices and ongoing geopolitical tensions, which have weighed on remittance income. Despite these headwinds, Remittance Operating Income rose by 4% YoY to AED 171 million, reflecting the Group's robust fundamentals and market adaptability.
• Although geopolitical tensions in certain markets have exerted pressure on the banknotes business, the Group maintained a resilient performance in this segment during Q1'25 reporting an increase in Banknotes Operating income by 7% YoY to AED 93 million. Strategic partnerships, strong performance and increased demand on our prepaid cards, and the UAE's surge in tourism enabled us to navigate disruptions and continue meeting and exceeding customer demand.
• The Group's Wage Protection System (WPS) Other Products & Services business delivered stable growth in Q1'25, with operating income increasing by 26% YoY to reach AED 30 million. This growth was driven by the UAE's expanding labour market and ongoing infrastructure and development projects. As more employers prioritise compliance and timely salary disbursements, demand for secure, efficient payroll solutions remains strong. Our robust digital payroll offerings and extensive branch network have enabled us to deepen client relationships and support the evolving needs of businesses across sectors. This steady performance reaffirms our strategic role in facilitating financial inclusion and supporting the UAE's economic momentum.
• The Group's continued investment in digital innovation is yielding strong results, with a notable 16% YoY increase in the number of transactions conducted through our digital channels in Q1'25, with Digital Channels contributing to 24% of the total outward remittance transactions. This growth reflects the accelerating adoption of our digital platforms, as more customers choose the convenience, speed, and reliability of our online and mobile services. The uptick in usage is a direct outcome of our commitment to delivering a seamless and intuitive customer experience - one that builds trust and encourages long-term digital engagement. As we advance our digital transformation strategy, these early adoption trends position us well for scalable growth and deeper customer connectivity in the quarters ahead.

Commenting on the results, Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services, said:

“We began 2025 with strong momentum, and our first-quarter results are a testament to the strength of our business model, the trust of our customers, and our commitment to delivering accessible, technology-driven financial solutions. Despite ongoing geopolitical challenges and fierce competition, we achieved solid growth across our core segments through disciplined execution and an unwavering focus on customer experience.

We successfully maintained our customer base and market share, underscoring the resilience of our brand.

The continued growth in digital transactions reflects our successful efforts to drive innovation and expand access to essential financial services. Our performance across remittances, WPS, and banknotes reinforces our central role in advancing financial inclusion and supporting the diverse needs of individuals and businesses in the UAE and beyond.

We delivered on our promise, expanding in line with our strategy and doubling the number of countries in which we operate. Our strategic growth initiatives and recent acquisition are designed to future-proof the company, positioning us for sustained success in an evolving financial landscape. In addition, we have begun integrating AI into our systems, and the early results have been both promising and exceeding expectations.

As we look ahead, we remain deeply aligned with the UAE's vision for a digitally empowered, inclusive economy. We will continue investing in technology, deepening customer engagement, and pursuing sustainable growth that delivers long-term value to our shareholders, customers, and the communities we serve.”

Mohammad Bitar Deputy Group CEO of Al Ansari Financial Services, added:

“Q1 2025 was defined by strong operational execution across the Group, as we focused on driving efficiency, strengthening service delivery, and preparing for future growth. We achieved notable improvements in process optimisation and customer engagement across both physical and digital touchpoints.

A key milestone was the successful closing of the BFC acquisition, which marks a major step forward in our regional growth strategy. Integration efforts are progressing smoothly, and we expect to begin reflecting the impact of this consolidation in Q2 2025. This acquisition not only expands our geographic reach but also enhances our ability to serve a broader customer base with greater scale and capability.

We are also on the verge of launching our much-anticipated digital wallet-a market-changing innovation that promises to revolutionise the way our customers manage their finances. Designed with accessibility and ease-of-use in mind, the wallet will empower customers to store, send, and spend money more conveniently and securely than ever before.

We remain focused on seamless integration, operational excellence, and unlocking synergies that will reinforce our leadership in the non-banking financial services sector.

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