GFH eyes further growth

MANAMA: GFH Financial Group (GFH) has reported net profit attributable to shareholders of $8.11 million for the third quarter of 2020 compared with $19.84m in the third quarter of 2019, a decrease of 59.1 per cent.

The decrease is predominantly attributable to the worldwide Covid-19 pandemic which had an impact across the group’s business lines.

Earnings per share for third quarter were 0.24 cents compared to 0.60 cents for the comparative quarter of 2019.

Consolidated net profit for the third quarter was $9.92m compared with $17.22m in the third quarter of 2019, a decrease of 42.4pc.

Net profit attributable to shareholders for the first nine months of 2020 was $23.17m, a decrease of 64.1pc when compared with $64.53m in the first nine months of 2019.

The primary reason for this decrease was the lower contributions from the group’s investment banking and real estate operations, as well as fair value movements in the group’s treasury portfolio.

Earnings per share for the period were 0.69 cents compared to 1.91 cents for the first nine months of 2019.

Consolidated net profit for the nine months was $30.31m, compared with $61.22m in the first nine months of 2019, a decrease of 50.5pc.

Total equity attributable to shareholders was $0.88 billion as of end-September 2020 from $1bn at year-end 2019, a decrease of 12pc.

The drop in shareholders’ equity was primarily due to the 2019 dividends payout, mark to market changes on treasury portfolio, and additional capital contribution to the group’s commercial banking subsidiary.

Total assets of the group were $6.16bn as of end-September 2020 compared with $5.95bn as of end-December 2019, an increase of 3.5pc.

Total income for the nine months was $214.10m versus $244.99m for the 2019 period.

Despite a decrease of 12.6pc in income, all business lines have contributed to the income despite difficult market conditions that have characterised 2020.

Total income for the third quarter was $67.58m compared to $85.89m for the third quarter of 2019, a decrease of 21.3pc.

Major contributions for the third quarter included income from the placement of the group’s US deal and advisory fee income.

Total expenses for the period were $183.79m up marginally by 0.3pc from $183.31m for the first nine months of 2019, reflecting the cost streamlining measures undertaken by the group.

Total expenses for the third quarter of 2020 was $57.65m compared to $68.66m in the comparative period of 2019, a significant drop of 16pc.

Commenting on the results, GFH chairman Jassim Alseddiqi said, “For the first nine months of 2020, we remain encouraged by the resilient nature of the group’s diverse business model. While net profit for the period was affected by the fallout of the Covid-19 pandemic, the ability of the group to deliver solid income and results is an important demonstration of the underlying strength of our strategy and progress that continues to be made across each and every one of our business lines. Although we expect current challenges to continue for the foreseeable future, we remain confident in our own ability to nevertheless find and leverage opportunities including those we see for inorganic growth in the forthcoming periods.”

GFH chief executive Hisham Alrayes said, “We are pleased with GFH’s continued strong performance and revenue generation despite the unprecedented market conditions under which the group and our portfolio companies have been operating over the past nine months. We are also pleased with the results of the restructuring of our commercial banking subsidiary and its ability to contribute to profitability over the last quarter. As we go forward, we expect enhanced activity in our investment banking and commercial banking businesses as well as treasury and real estate operations to have a positive impact on our performance and results.”

Source: http://www.gdnonline.com/Details/897524