GFH reports 217pc rise in net profit

MANAMA: GFH Financial Group has reported net profit of $16.12 million for the first quarter of the year (Q1-2021) compared with $5.08m in Q1-2020, up 217.2 per cent.

The increase reflects strengthening across business lines and improved contributions from the group’s commercial banking and treasury activities, in particular.

Earnings per share for first quarter of 2021 were 0.53 cents compared to 0.15 cents for the first quarter of 2020.

Consolidated net profit for Q1-2021 was $19.34m compared with $6.78m in the first quarter of 2020, an increase of 185.2pc.

Total equity at $0.92 billion as of end-March 2021, is up 0.4pc from $0.91bn as of end-2020.

Increase

The marginal increase in shareholders’ equity was primarily due to profit for the period and fair value movement in the treasury portfolio.

Total assets of the group were $7.04bn as of end-March 2021, an increase of 6.9pc when compared with $6.59bn as of end-2020.

Total income for the first quarter of 2021 was $90.39m compared to $69.46m for the first quarter of 2020, a strong 30.1pc rise.

Supporting growth was income generated from the placement of deals, sale of assets and increased treasury activities.

Total expenses for the first three months of the year were $71.05m, up 13.4pc from $62.68m during the comparable 2020-period.

Commenting, GFH chairman Jassim Alseddiqi said: “We’re very pleased with the group’s first quarter results especially in light of the continuing effects of the pandemic still being felt around the world. Despite this, the first three months of 2021 saw GFH make great strides across the business and deliver good growth in profits and income year-over-year. Over the quarter, we continued to grow our retail and investment banking, asset management and treasury businesses as well as our portfolio and presence in key markets including the GCC, UK, Europe and the US. Building on our momentum, we will focus and expect to further accelerate growth, enhance value and strengthen the bottom line in the periods ahead.”

GFH chief executive Hisham Alrayes said: “We entered 2021 with a very promising pipeline of opportunities and successfully converted these into transactions that were welcomed by our investors across the region. In the first quarter, profitability was driven by the placement of unique and diverse deals including the nearly $135m acquisition of a mission-critical distribution facility in Chicago, leased to Michelin North America, as well as the sale of GFH’s US-based portfolio of pre-IPO, high-growth companies that specialise in next generation technologies. Results were also supported by the sale of equity investments and treasury income realised from sukuks, notes and fixed income.”

 

Source: https://www.gdnonline.com/Details/944714/GFH-reports-217pc-rise-in-net-profit

 

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