GFH reports an increase of 11.2% in net profit attributable to shareholders for the first half of 2024 totaling us$60.75 million
TDT | Manama
The Daily Tribune - www.newsofbahrain.com
GFH Financial Group B.S.C (“GFH” or “the Group”) (Bahrain Bourse: GFH) today announced its financial results for the second quarter (“the quarter”) and first six months of the year (“the period”) ended 30 June 2024.
Net profit attributable to shareholders was US$33.61 million for the second quarter of the year versus US$30.61 million in the second quarter of 2023, an increase of 9.8% resulting from continued solid performance and contributions from the Group’s subsidiaries and core investment management activities. Earnings per share for the second quarter were US cents 0.94 compared with US cents 0.86 in the second quarter of 2023, an increase of 9.3%. Total comprehensive income attributable to shareholders was US$ 31.41 million for the second quarter of the year versus US$ 27.71 million in the second quarter of 2023, an increase of 13.35%. Total income was US$169.26 million for the second quarter of the year compared with US$111.16 million in the second quarter of 2023, up 52.3%. Consolidated net profit for the second quarter was US$37.55 million compared with US$32.75 million in the second quarter of 2023, an increase of 14.7%. Total expenses for the quarter were US$74.69 million compared with US$54.08 million in the prior-year period, up 38.1%.
|
|
Total Income |
Shareholders Profit |
EPS |
|
6M 2024 |
US$332.23mn |
US$60.75 mn |
US cents 1.70 |
|
% Change |
+ 53.7% YoY |
+ 11.2% YoY |
+ 9.7% YoY |
|
Q2 2024 |
US$169.26mn |
US$33.61 mn |
US cents 0.94 |
|
% Change |
+ 52.3% YoY |
+ 9.8% YoY |
+ 9.3% YoY |
The Group reported net profit attributable to shareholders of US$60.75 million for the first six months of the year compared with US$54.62 million in the 2023 period, an increase of 11.2%. The gain is attributed to contributions from the investment banking business, and growth in the Group’s commercial banking subsidiary and treasury and proprietary investment activities. Earnings per share for the six-month period was US cents 1.70 compared to US cents 1.55 for the first half of 2023, an increase of 9.7%. Total comprehensive income attributable to shareholders was US$ 67.31 million for the first six months of the year compared with US$ 52.28 million in the 2023 period, an increase of 28.75%. Total income for the period was US$332.23 million, up 53.7% from US$216.21 million year-on-year. Consolidated net profit for the first six months of the year was US$67.90 million compared with US$57.19 million in the corresponding period of 2023, an increase of 18.7%. Total expenses for the six-month period were US$163.87 million compared with US$116.56 million in same period of 2023, an increase of 40.6 %.
Total equity attributable to shareholders was US$969.42 million at 30 June 2024 versus US$989.54 million at 31 December 2023, down 2.0%. Total assets of the Group were US$10.89 billion compared with US$11.12 billion at 31 December 2023, down 2.1%.
Currently, GFH manages over US$21 billion of assets and funds including a global portfolio of investments in logistics, healthcare, education and technology in the MENA region, Europe and North America.
Mr. Abdulmohsen Rashed Al Rashed
Chairman, GFH Financial Group
“For the second quarter of 2024 and first six months of the year the Group continued its growth trajectory. The Group’s market value was also enhanced by the addition of a new strategic shareholder, with Mr. Ahmed bin Saeed Al Qasimi joining the Group’s shareholder base. In line with our strategy aimed at providing greater value to shareholders, we have also recently appointed BHM Capital as the liquidity provider for GFH shares listed on the Dubai Financial Market and Abu Dhabi Securities Exchange, as well as SICO as a market maker for GFH shares listed on the Bahrain Bourse. Building on this momentum, our focus remains on even further diversifying our international portfolio of assets and creating tangible value for our investors and shareholders in the forthcoming periods.”
Mr. Hisham Alrayes
CEO and Board Member, GFH Financial Group
“We are delighted to report strong results and performance for the second quarter and first half of the year. For the quarter and six-month period, income grew significantly by more than 50% year-on-year, respectively, enabling us to further enhance profitability in line with market forecasts.”
“During the quarter, we also grew our global portfolios and investments and executed exits at good prices for shareholders and the Group. Our global real estate asset management arm, GFH Partners, successfully closed its US Industrial & Logistics Fund VII with a total transaction value of US$300 million, and we completed the sale of the Group’s investment in Charthouse Bahrain and exited from our joint investment with Carlyle in Citrix in just 18 months. Despite market volatility and geopolitical challenges, we remain confident in our ability to effectively execute our strategy, drive value from our assets, and further build our market leadership in the region and globally for the benefit of our investors and shareholders.”
Business Unit Highlights
The Group continued to deliver sound performance and contributions from across its core business lines during the second quarter of 2024.
Investment Management:
- During the second quarter, the Group’s investment banking activities generated US$41.97 million. This included fees and income generated through various deals undertaken across the Group’s core GCC and US markets and placed with its diverse investor base.
- GFH Partners, the Group’s global real estate investment management arm, completed the placement of deals amounting to US$165 million across the US and UK markets, and successfully closed its US Industrial & Logistics Fund VII with a total transaction value of US$300 million.
- The Group exited its joint investment in Citrix with Carlyle 18 months ahead of the projected three-year timeline.
Commercial Banking:
- The Group’s commercial banking business, Khaleeji Bank, reported further growth in income and profitability during the second quarter underscoring the ongoing success of recent restructuring efforts.
- Income for the second quarter increased by 16.5% reaching US$33.78 million.
Treasury & Proprietary Investments:
- The Group’s treasury and proprietary investment activities generated gross income of US$93.5 million for the quarter after recording a loss from market movements of US$11.7 million.
Included in income were gains from the sale of the Group’s investment in Charthouse Bahrain.
ESG Highlights
The Group continued to effectively execute on its Environmental, Social and Governance (ESG) strategy undertaking key initiatives in the second quarter including:
- Contributions to Local Talent Development: GFH welcomed Summer Internship students for the 2024 programme. The initiative offers high achieving high school students practical experience in the financial sector through on-the-job training across multiple departments and subsidiaries. The initiative also aims to develop the knowledge and skills of the students, preparing them for higher education, future employment and, ultimately, contributions towards overall local and regional economic development.
- Continued Contributions to Youth Affairs: GFH backed the Youth City 2030 eventorganized by the Ministry of Youth Affairs in strategic partnership with Tamkeen. Youth City 2030 is an initiative launched by His Highness Shaikh Nasser bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Work and Youth Affairs and Chairman of the Supreme Council for Youth and Sports (SCYS) in 2010 to discover young talents and empower Bahraini youth to excel and become the employees of choice in the labour market.
- Supporting People of Determination: The Group signed with the Bahrain Sports Federation for Disabilities to sponsor the upcoming 3X3 Wheelchair Basketball. Held under the patronage of His Highness Shaikh Khalid bin Hamad Al Khalifa, First Deputy Chairman of the Supreme Council for Youth and Sports (SCYS), Chairman of the General Sports Authority (GSA), and President of the Bahrain Olympic Committee (BOC), the event was held on 31st July to 3rd August 2024. In addition, the annual BS Action Fans League & Angel 3X3 Women’s League was held during the tournament to foster a greater sense of community, inclusion and engagement.
The Group’s financial results in full can be found at https://www.bahrainbourse.com/. Shares of GFH are traded under the ticker “GFH” on the Abu Dhabi Securities Exchange, Bahrain Bourse, Boursa Kuwait and Dubai Financial Market.
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