GFH profit rises on strong all-round performance

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Riding on the back of strong performance across all its business lines, GFH Financial Group yesterday reported a third-quarter and nine-month profit that surged from a year-ago ago, despite the ongoing market pressures globally as a result of the COVID-19 pandemic Among the main contributors to the third quarter were investment banking and treasury income.

Fees generated on deals of US$22.65 million were realised from key investments in the logistics sector and multi-residential portfolios.

Also supporting income growth and profits were contributions from the treasury business and commercial banking business of the Group.

Quarterly results

The third-quarter net profit attributable to shareholders was US$23.30 million, up 187.30% from US$8.11 m in the same quarter a year ago.

Earnings per share were US cents 0.69 compared to US cents 0.24 for the comparative quarter of 2020.

Total income was US$89.60 m compared to US$67.58 m in the prior-year quarter, a rise of 32.58%. Consolidated net profit was US$24.13 m compared with US$9.92 m in the year-earlier quarter, an increase of 143.25%.

Total expenses were up 13.56% to US$65.47 m from US$57.65 m in the prior-year quarter.

Nine-month profit

Net profit attributable to shareholders was US$60.34 million compared with US$23.17 m in the corresponding period of 2020, an increase of 160.42%.

Supporting the growth was increased deal placement, continued expansion of the Group’s treasury activities and stronger performance by its commercial banking subsidiary, Khaleeji Commercial Bank (KHCB,) and real estate business.

Earnings per share were US cents 1.78 compared to US cents 0.69 in the year-ago period.

Total income was US$270.61 m, versus US$214.10 m for the 2020 period, an increase of 26.39%.

Income growth continued to be supported by strengthening performance and contributions from across the Group’s core investment platforms and activities.

Consolidated net profit increased 125.27% to US$68.28 m, compared with US$30.31 m in the prior-year period.

Total Expenses were US$202.33 m, up 10.08% from US$183.79 m in the year-earlier period.

Total equity attributable to shareholders was US$0.97 billion on 30 September 2021, up 6.59% from US$0.91 bn at yearend 2020.

Total assets of the Group continued to grow reaching US$7.43 bn on 30 September 2021 compared with US$6.59 bn on 31 December 2020, an increase of 12.75%.

Beating pandemic

Commenting, Jassim Alseddiqi, Chairman of GFH, said, “The first nine months of 2021 have been marked by substantial growth in income and profits achieved by the Group.

We’re pleased with these results and GFH’s continued ability to deliver across its diversified lines of business and geographies where we invest.”

“While globally, we are still feeling the effects of the pandemic, our performance for the period underscores the robust nature of our strategy and the important positions we have built-in resilient and defensive sectors and businesses around the world.

During the period, we continued to expand our presence in the global logistics real estate sector, bringing new and exciting deals to our investors and generating strong placement income.”

“We also reported enhanced contributions from our restructured commercial banking business alongside further growth in our treasury business and improvements in real estate activities and income.

GFH has entered the fourth quarter with strong momentum and a pipeline of opportunities to enable us to achieve further growth and profitability for the remainder of the year and beyond,” said Alseddiqi.

Hisham Alrayes, CEO of GFH, added, “Solid increases in income and profits reflect a well-diversified business model, effective management of our investments and steady income generation capabilities, which has been a key objective for the Group.

During the quarter, we benefited from strong investor demand for deals we have closed in the US real estate market in well-performing segments such as logistics and residential. We have also made gains from improving performance in our commercial banking activities, where we have increased our stake in KHCB.”

Growth central theme

Looking ahead, he said growth remains a central theme for GFH, in all areas of our business.

“We have entered the final months of the year with a sharp focus on investments and relationships that will allow us to accelerate growth in our portfolios in key sectors including logistics, technology and education, among others.”

He added: “We look forward to announcing further strategic transactions and new partnerships to create even greater value for our investors and shareholders.”