Page 34 - AAE PR REPORT - August 2024

• Free Cash Flow: AED 242 million, representing a strong 94% EBITDA to cash conversion rate.

Operational Performance:

• The total number of transactions increased by 2.2% YoY, reaching 25 million in H1 2024.
• The Group's digital channels experienced a significant 24% YoY growth in transaction
volume, indicating strong customer preference for digital services.
• The Wage Protection System (WPS) saw a 13.8% increase in transactions, contributing to a
7% rise in operating income from this segment.
• The Group continued its expansion strategy, adding 21 new branches, bringing the total
number of physical branches to 259 by the end of H1 2024.

Strategic Developments:

• Al Ansari Financial Services is poised to launch its Digital Wallet by the end of the year,
enhancing its digital offerings.
• The integration of Al Ansari Exchange in Kuwait with Oman Exchange is on track to be
completed by the end of August 2024, with synergies expected to be realized in Q1 2025.
• In a significant move, the Group signed a sales and purchase agreement in July 2024 to
acquire 100% of BFC Group Holdings W.L.L., a prominent foreign exchange and remittance
group based in Bahrain, for USD 200 million (AED 735 million).

Leadership Commentary: Rashed A. Al Ansari, Group CEO, highlighted the Group's resilience and
strategic execution, stating, "Our diversified business model and customer-centric approach have
positioned us well for sustained growth and value creation for our shareholders. Despite challenges,
we continue to see positive contributions from the stabilization of market conditions and the
successful implementation of remittance fee increases."

Mohammad Bitar, Deputy Group CEO, added, "While geopolitical factors impacted our wholesale
banknote transactions, our remittance business showed signs of recovery with a 6% increase in
operating income compared to the second half of 2023. The expansion of our branch network and
the strong performance of our digital platforms underscore our commitment to operational
efficiency and customer satisfaction."

Outlook: Looking ahead, Al Ansari Financial Services remains optimistic about the future, supported
by the expanding remittance sector, ongoing fee adjustments, and a favorable macroeconomic
outlook for the UAE. The Group remains focused on its growth strategy and delivering increased
value to shareholders.

https://www.dayofdubai.com/news/al-ansari-financial-services-reports-resilient-performance-in-
h1-2024-amid-challenging-macroeconomic-conditions