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Al Ansari Financial Services PJSC (DFM: ALANSARI), the parent company of Al Ansari Exchange and a leading financial services provider in the UAE, has released its financial results for the third quarter and first nine months of 2024, ended September 30, 2024. Despite a challenging economic environment, the Group achieved significant milestones in digital and branch network expansion while maintaining a stable financial position.

Financial Highlights

For Q3 2024, Al Ansari reported:

• Operating Income: AED 288 million, up 1% YoY
• EBITDA: AED 130.6 million, down 7% YoY, with a 45.4% margin
• Net Profit after Tax: AED 103 million, a 17% decline YoY
• Free Cash Flow: AED 122.7 million, down 5% YoY

For the 9M period of 2024:

• Operating Income: AED 855 million, a 1% decrease YoY
• EBITDA: AED 388.6 million, an 11% decline YoY
• Net Profit after Tax: AED 308.5 million, a 20% drop YoY

The adjusted figures, excluding a one-off income from Iraq in Q3 2023, highlight a 4% rise in Operating Income YoY, reflecting solid performance when accounting for non-recurring factors.

Operational Developments and Strategic Growth

Al Ansari continues to expand its footprint, with total branches reaching 263 locations by Q3 2024. Additionally, it is progressing with acquisitions and integrations, including:

• BFC Group Holdings W.L.L.: Expected completion by Q1 2025, enhancing regional presence.
• Kuwait Operations Integration: Al Ansari Exchange in Kuwait will be fully acquired by Q4 2024, creating new synergies expected by Q1 2025.
• Digital Wallet Launch: A new Al Ansari Digital Wallet is slated for release by the end of 2024, emphasizing the Group's commitment to digital innovation.

Business Segment Performance

• Remittances: Transaction volume grew by 2%, totaling 37.3 million transactions in 9M 2024, while adjusted Remittance Operating Income rose by 7% YoY.
• Corporate Services: Transactions increased by 4% YoY, supported by expanded product offerings, especially within the Wage Protection System (WPS), which saw a 9% growth in income.
• Digital Channels: Digital transactions reached 3.6 million, a 24% YoY increase, contributing to 23% of total remittance activity, showcasing progress toward digital transformation.

Financial and Operational Outlook

CEO of Al Ansari Financial Services commented, "Our continued branch expansion and digital innovation reflect our strategy to strengthen market leadership and provide seamless, customer-focused financial solutions. Despite challenges, our robust EBITDA margin and cash conversion rate underscore operational resilience and efficiency.”

The Group’s focus on optimising digital services and network expansion reduced Capital Expenditure (CAPEX) by 25%, resulting in a 94% EBITDA to cash conversion rate. Al Ansari remains committed to strategic growth, digital transformation, and operational efficiency, ensuring continued leadership in the UAE’s financial services sector.

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