Al Ansari Financial Services, the UAE money exchange and transfer company, reported a 22 per cent annual drop in its third-quarter net profit as costs rose amid an expansion push.
Net profit attributable to the shareholders of the company for the three months to the end of September declined to Dh124.5 million ($34 million), the company said on Thursday in a filing to the Dubai Financial Market, where its shares are traded.
The net gain on currency exchange during the period fell 20 per cent, year on year, to Dh131.2 million, while finance costs more than doubled to Dh1.6 million.
Depreciation and amortisation charges for the quarter rose 16 per cent annually to Dh21.5 million.
General and administrative expenses also jumped during the period, affecting the profit of the company.
“Despite the current global economic and political uncertainties, our confidence remains steadfast, bolstered by the enduring strength of our core assets and value propositions,” Rashed Al Ansari, group chief executive of Al Ansari Financial Services said.
“These … assets position us favourably to execute our growth strategy while consistently delivering robust financial results.”
Al Ansari made its trading debut on the DFM in April after it sold 750 million shares through its initial public offering that raised $210 million from the sale of a 10 per cent stake to retail and qualified institutional investors.
The company drew $3.45 billion in bids for the offering, which was oversubscribed 22 times on average.
National Bonds Corporation – owned by the Investment Corporation of Dubai, the investment arm of the Dubai government – committed to a cornerstone investment worth Dh200 million in the IPO.
The company’s nine-month net profit attributable to shareholders fell 10.5 per cent annually to Dh387.8 million on a lower net gain on currency exchanges, higher general and administrative expenses and depreciation and amortisation charges. Finance costs also surged during the period.
Al Ansari’s number of physical branches in the nine months of 2023 increased to 248 compared to 225 during the same period last year.
The total number of transactions during the period grew 10 per cent annually to 36.6 million transactions.
Capital expenditure for the nine months increased by 3.7 per cent, year on year, to Dh32 million as the group continued to invest in scaling up its business in line with its growth strategy.
The group‘s cash flow from operations after adjusting for capex amounted to Dh407 million during the period.
The company received shareholders’ approval for a proposed interim dividend payment of Dh300 million, at 4 fils a share. The second payment of an equivalent amount will be disbursed in April 2024, it said.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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2nd ODI, Fri Apr 12
3rd ODI, Sun Apr 14
4th ODI, Sun Apr 16
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Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
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The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
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Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
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