Al Ansari Financial Services reported a 29% year-on-year decrease in net profit after tax to AED 77 million for Q1 2026. The decline was primarily driven by geopolitical developments impacting regional tourism, higher finance costs related to ongoing expansion, and margin compression caused by a competitive environment and a largely fixed operating cost base.

Operating income rose 9% year-on-year to AED 321 million, supported by solid volume growth across core business lines and the consolidation of Bahrain Finance Company (BFC) following its acquisition in mid-2025. This growth demonstrates the Group's ability to increase top-line revenue despite significant regional headwinds.

EBITDA decreased 10% year-on-year to AED 123 million with an EBITDA margin of 38.4%, reflecting the impact of lower-than-expected volumes in specific segments and competition from fintechs. Management noted that liquidity remains robust, supported by a strong EBITDA-to-cash conversion rate of 95% and a capex-light model where capital expenditure represents only 2.1% of operating income.

Digital adoption accelerated as transaction volumes through digital channels grew 69% year-on-year, now accounting

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AAFS Q12026 Financial Results PR ENG FINAL.Pdf

ALANSARI