Al Ansari Financial Services Reports Strong Performance for FY 2024 Amid Economic Challenges
Al Ansari Financial Services PJSC (DFM: ALANSARI), one of the UAE's leading integrated financial services groups and the parent company of Al Ansari Exchange, announced its financial results for the full year 2024 (FY'24) and the fourth quarter (Q4'24), ending December 31, 2024.
Operating Income for the Group increased by 2% year-on-year (YoY) to AED 1,149 million in FY'24. In October 2024, the Group distributed an interim dividend of AED 157.5 million and has proposed a final dividend of AED 157.5 million, subject to shareholder approval at the upcoming Annual General Meeting. This brings the total dividend for the year to AED 315 million (4.2 fils per share), representing almost 78% of the net profit after tax.
Despite the increase in operational costs and the impact of the newly introduced corporate tax, the Group achieved a solid EBITDA margin of 44.4% for FY’24. Net profit after tax for FY'24 declined by 18% YoY to AED 406 million, attributed to factors such as an increase in manpower costs, the Emiratisation programme, and geopolitical challenges affecting the region.
The Group’s digital transformation efforts and optimized branch network expansion contributed to a 29% reduction in capital expenditure (CAPEX) for FY’24, with free cash flow amounting to AED 478 million, maintaining a 94% EBITDA-to-cash conversion rate.
Key Financial and Operational Highlights:
- Q4 Operating Income: AED 293.9 million, a 9% YoY increase
- Q4 EBITDA: AED 121.7 million, a 2% YoY decrease
- Q4 Net Profit: AED 97.3 million, a 9% YoY decline
- Free Cash Flow: AED 113.5 million, a 3% YoY increase
- Digital Transactions: 5 million, up 23% YoY
Operationally, the Group recorded 50 million transactions in FY'24, a 2% increase YoY, demonstrating its strong market leadership. The Corporate Business segment saw a 5% YoY increase in transaction volumes, and the Wage Protection System (WPS) segment saw a 13% YoY increase. Digital transactions also grew significantly, accounting for 23% of the total remittance transactions.
Mohamed A. Al Ansari, Chairman of Al Ansari Financial Services, commented: “Despite a challenging macroeconomic environment, our performance reflects the strength of our strategic vision, operational resilience, and commitment to sustainable growth. We remain focused on delivering solid financial results, ensuring operational efficiency, and enhancing customer experience.”
Rashed A. Al Ansari, Group CEO, added: “Our achievements in FY’24 demonstrate the robustness of our strategy and vision. We navigated through economic and geopolitical pressures while achieving record transaction volumes and expanding our service offerings. Our digital transformation initiatives, including the integration of emerging technologies, will continue to drive our growth and profitability in the coming years.”
