Al Ansari Financial Services reported a 12.3 per cent year-on-year decline in net profit after tax to Dh79.8 million during the third quarter of 2026, as higher operating expenses and regional geopolitical tensions weighed on earnings despite relatively stable income.
The Dubai-listed financial services group said operating income slipped 0.6 per cent to Dh325.6 million, compared with the same period last year, reflecting pressure from changing conditions in key remittance markets and increased competition.
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Earnings before interest, taxes, depreciation and amortization (Ebitda) declined 5.7 per cent to Dh128.1 million, with the quarterly Ebitda margin narrowing to 39.3 per cent from 41.5 per cent a year earlier.
The company said its performance was affected by geopolitical developments, evolving regulatory and commercial conditions across remittance corridors, and pressure on margins.
Higher costs weigh on profits
Operating expenses increased during the quarter as Al Ansari Financial Services continued investing in employees, its branch network and technology systems to support long-term growth.
Salaries and employee benefits rose 1.1 per cent, while other operating expenses increased 8.8 per cent.
Net gains from currency exchange increased 0.5 per cent to Dh181.6 million, while net commission income declined 1.8 per cent to Dh144 million.
Despite the decline in profitability, the group reported a smaller contraction in third-quarter earnings compared with the first half of the year, when Ebitda and net profit had fallen 15 per cent and 28.7 per cent, respectively.
Nine-month profit drops 23.8%
Al Ansari Financial Services reported a 23.8 per cent decline in net profit after tax to Dh231.1 million.
Operating income fell 0.5 per cent to Dh960.7 million, while Ebitda decreased 12.3 per cent to Dh370.9 million.
The nine-month Ebitda margin narrowed to 38.6 per cent, compared with 43.8 per cent in the corresponding period last year.
The group said the decline reflected slightly lower operating income alongside higher expenses linked to its growth investments.
Cash position and outlook
Al Ansari Financial Services generated Dh342 million in free cash flow during the period, with a cash conversion rate of 92 per cent.
Net current assets increased to Dh2.1 billion from Dh2 billion at the end of 2025, while total assets rose 6.6 per cent to Dh4.73 billion.
The group’s debt-to-equity ratio improved to 29 per cent from 38 per cent at the end of last year, supported by lower bank borrowings.
Rashed A. Al Ansari, Group Chief Executive Officer of Al Ansari Financial Services, said the company remained focused on strengthening its regional presence and expanding its digital capabilities.
“Our investments in new capabilities are guided by our ambition to serve customers more effectively and support sustainable growth,” he said.
Mohammad Bitar, Deputy Group Chief Executive Officer, said the company would continue prioritizing operational efficiency, cost management and the integration of its regional platform while responding to changing conditions across key remittance markets.
Source: Khaleej Times