Page 60 - AAE PR REPORT - July 2024

7/31/24, 9:30 AM Al Ansari To Acquire Bahrain's BFC Group For $200M
The merged entity will boast a network of over 410 branches and a workforce of approximately
6,000, expanding AAFS's presence by 60% and its staff by 25%.

The transaction is set to close by the first quarter of 2025. The deal is subject to customary legal and

regulatory approvals and the fulfillment of specific conditions.

This acquisition supports AAFS's strategic goals of geographic expansion, branch network growth,

and service diversification.

Big number

The consolidated revenues of AAFS and BFCGH for the fiscal year 2023 amounted to

approximately $385 million (AED 1.4 billion), a 22% growth compared to AAFS’s reported
revenue.

Previous acquisition

AAFS had submitted a formal offer to acquire a majority stake in an exchange house in Oman to
expand its presence in the Gulf region. Al Ansari did not divulge the name of the Omani exchange

firm targeted for potential acquisition.

If completed, the UAE exchange house said Oman would be the group’s second expansion in the
GCC region after Kuwait while continuing to strengthen its local presence by opening more

branches in the UAE.

Al Ansari's financial performance

AAFS reported a 25.8% fall in its first-quarter profit to $26.9 million (AED 98.7 million), mainly

due to the cumulative impact of a reduction in operating income, an 11% rise in overhead expenses,
and the introduction of corporate tax.

The UAE exchange house said its operating income for the January-March period of 2024 dropped
by 4.3% year-on-year to $74.8 million (AED 274.7 million) due to the persistent challenges of the

parallel market in key remittance corridors and the prevailing macroeconomic conditions in the

region.

During the quarter, the total number of transactions rose by 5.1% year-on-year to 12.4 million.

In April this year, the exchange house sold 750 million shares, or 10% of its stake owned by AAFS,
on the Dubai bourse, making it one of the first family-owned businesses to come out with a share

offering at the Emirates.

https://www.forbesmiddleeast.com/money/banking-finance/al-ansari-financial-services-to-acquire-bfc-group-holdings-for-%24200m 2/2