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Earnings Report

Al Ansari Financial Services

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Al Ansari Financial Services PJSC delivered continued operating income growth in Q1 2026 despite softer regional tourism activity and increasing competitive pressure from fintech players. The Group operates one of the largest exchange and remittance networks in the GCC, offering foreign exchange, remittances, WPS services, prepaid travel cards, and digital payment solutions across the UAE, Bahrain, Kuwait, and India.

Management highlighted resilient performance across core business lines supported by transaction volume growth, digital adoption, and the consolidation of Bahrain Finance Company (BFC), acquired in Q2 2025.

2. Financial Performance Snapshot

  • Operating income: AED 321.0M (+9% YoY)

  • Total income: AED 326.6M

  • EBITDA: AED 123.0M

  • EBITDA margin: 38.4%

  • Profit before tax: AED 86.1M

  • Net profit after tax: AED 77.4M

  • EPS: AED 0.0103

Compared to Q1 2025:

  • Operating income increased from AED 302.2M to AED 321.0M

  • Net profit declined from AED 108.9M to AED 77.4M

  • EBITDA declined 10% year-on-year due to margin compression and fixed operating cost structure

Key revenue contributors:

  • Net gain on currency exchange: AED 160.0M

  • Net commission income: AED 161.3M

3. Operational Highlights & Key Metrics

  • Branch network: 441 branches across UAE, Bahrain, Kuwait & India

  • Digital transaction share: 29% of total transactions (vs 24% in Q1 2025)

  • Digital transaction volume growth: +69% YoY

  • Cash & cash equivalents: AED 3.23B

  • Total equity: AED 1.77B

  • Balances with banks: AED 2.28B

  • Cash on hand & in transit: AED 1.08B

Additional highlights:

  • EBITDA-to-cash conversion remained strong at 95%

  • Capex remained low at approximately 2.1% of operating income

  • Total trade & other payables stood at AED 1.48B

  • Bank borrowings declined to AED 217.3M from AED 303.1M at year-end 2025

4. Key Performance Drivers

  • Strong transaction volume growth across remittance and exchange operations supported revenue expansion

  • Consolidation of BFC contributed positively to topline growth

  • Higher operating costs and finance expenses pressured margins during the quarter

  • Regional geopolitical developments negatively impacted tourism-related transaction activity

  • Competitive pricing pressure from fintech operators impacted profitability

The Group continued investing in:

  • Digital remittance platforms

  • Smart counters and digital infrastructure

  • Corridor expansion across regional markets

  • Physical branch network optimisation

Management also highlighted improving activity trends toward the end of the quarter as regional conditions gradually stabilised.

5. Outlook & Forward Guidance

  • Management expects gradual recovery in travel and tourism-related activity during the remainder of 2026

  • Digital channels are expected to remain a major long-term growth driver

  • The Group remains focused on operational efficiency and expanding corridor coverage

  • Continued investment in digital and physical infrastructure remains a strategic priority

  • Al Ansari aims to further strengthen customer convenience and long-term market positioning across GCC remittance markets

6. ???? Investor Takeaway

Al Ansari Financial Services delivered resilient Q1 2026 operating income growth supported by strong remittance activity, accelerating digital adoption, and regional expansion, although softer tourism flows, higher operating costs, and competitive pressure weighed on overall profitability during the quarter.