Image courtesy: Al Ansari Financial Services
Al Ansari Financial Services’ board of directors has approved an interim dividend of Dhs300m for the first six months of 2023, equivalent to 4 fils per share.
The proposed dividend payout, which is subject to shareholders’ approval and compliance with all regulatory requirements, is in line with the company’s previously announced dividend policy of distributing Dhs600m.
Al Ansari said the first half of the payment will be made in 2023 and the second half of the payment in 2024.
The UAE money exchange and remittances firm reported a 2.5 per cent decrease in H1 2023 profit on the back of higher depreciation charges from expanding its branch network and increasing finance costs.
The company said its half-year net profit dropped by Dhs263m compared to nearly Dhs270m in the same period a year ago amid higher finance costs due to interest payments on a Dhs300m term loan drawn in December 2022.
Similarly, the company’s second-quarter net profit dropped by 10.7 per cent to Dhs130m, from Dhs146m for the same period a year earlier.
The firm’s Q2 2023 operating income rose by 1.2 per cent year-on-year to Dhs291m, mainly driven by strong growth in the bank notes, wage-protection system and other services. However, Al Ansari recorded a slight decline in the income from its remittance business.
Al Ansari’s growth strategy
Meanwhile, Al Ansari said it proposed to acquire a majority stake in an Omani exchange company. However, the money exchange and remittances firm did not disclose the name of the Omani company or the financial terms of the potential transaction.
The company said the potential transaction is in line with the company’s geographic expansion plans to grow market share in the attractive GCC region. Al Ansari said it had received preliminary approval subject to meeting the regulatory conditions.
“Subject to regulatory approvals and other completion-related processes, we are poised to enter the Oman market, our second foray outside UAE, following Kuwait, by acquiring a controlling stake in one of the leading exchanges in the sultanate,” said Rashed Al Ansari, group CEO of Al Ansari.
The 55-year-old company credits its success to its transactions in physical exchanges rather than its mobile application.
Al Ansari processes 126,000 transactions per day and has a three million-strong customer base, many of whom are low-income earners sending money home to remittance-dependent markets.
The company made its trading debut on the Dubai Financial Market in April after raising $210.5m in an initial public offering for 10% of the business.
