GFH FY21 profit jumps 86.77%

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

GFH Financial Group yesterday announced the fourth quarter and twelve results, reporting strong profits helped by strong continued performance across the Group’s core business lines and significant contributions from its investment banking business.

In line with results, the Board recommended a total cash dividend of US$60 million at 6.07% on par value, divided into 4.57% cash dividends amounting to US$45 m and 1.5% stock dividends of US$15 m for the shareholders.

Fourth-quarter results

Net profit attributable to shareholders was US$23.88 million for the fourth quarter of the year up 8.92%, compared with US$21.93 m in the year-ago quarter. Earnings per share for the quarter was US cents 0.72 versus US cents 0.64 for the comparative quarter of 2020.

The increase was the result of strong continued performance across the Group’s core business lines and significant contributions from its investment banking business, which generated US$52.25 m in fees from placement activities linked to the Group’s investments in the logistics, healthcare and education sectors.

This included investments in a prime FedEx logistics facility in the US, the UAE’s leading multi-speciality healthcare provider and a global healthcare education pioneer alongside Schroders Capital with whom the Group signed a strategic partnership during the fourth quarter to co-invest in select private equity and venture capital deals in Europe and the Americas.

Total income was US$128.14 m compared with US$109.29 m in the fourth quarter of 2020, a rise of 17.25%. Consolidated net profit was US$24.34 m compared with US$19.04 m in the prior-year quarter, an increase of 27.87%.

Total expenses, including impairment allowances, were US$103.80 m compared with US$90.26 m in the prior-year period, up 15%.

Full-year results

Net profit attributable to shareholders of US$84.22 m for the full year compared with US$45.09 m a year ago, an increase of 86.77%.

The increase reflects stronger contributions throughout 2021 from all business lines including investment banking, commercial banking, real estate and treasury activities. Earnings per share for the year was US cents 2.50 compared to US cents 1.33 for the full year 2020, an increase of 87.97%.

Total income was US$398.75 m up 23.30% from US$323.39 m for the previous year. Consolidated net profit was US$92.62 m compared US$49.34 m in 2020, an increase of 87.70%.

Total expenses, including impairment allowances, were US$306.13 m up from US$274.05 m in 2020, an increase of 11.71%. Total equity attributable to shareholders was US$0.96 billion at 31 December 2021 up 5.45% from US$0.91 bn at yearend 2020.

Total assets of the Group continued to grow reaching US$8.08 bn at 31 December 2021 compared with US$6.59 bn at yearend 2020, an increase of 22.72%.

Commenting on the results, Jassim Alseddiqi, Chairman of GFH, said, “Despite the ongoing impact of the Covid-19 pandemic around the world, we were able to improve income, strengthen profitability and once again deliver a healthy dividend for our shareholders.

Our results also continue to reflect the strength of our strategy and the quality of the portfolio of assets we have built and expanded over the past year across the region, US, UK and Europe.”

Hisham Alrayes, Group CEO of GFH, added, “In total, during the year, we closed more than US$ 1 billion of new investments across the region, international logistics, healthcare and education sectors, which were met with strong demand from our investors and successfully placed. This allowed us to increase our total assets and Asset Under Management (AUM) to US$ 15 billion for 2021.