GFH reports net profit of $84.22 million for 2021

GFH Financial Group (GFH) reported a net profit attributable to shareholders of $84.22 million for the full year of 2021 compared with $45.09m in 2020, an increase of 86.77 per cent.

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 were 2.50 cents compared to 1.33 cents for 2020, an increase of 87.97pc.

Total income for 2021 was $398.75m, up 23.30pc from $323.39m in the previous year.

Consolidated net profit for the year was $92.62m compared to $49.34m in 2020, an increase of 87.70pc.

Total expenses, including impairment allowances, for the year, were $306.13m, up from $274.05m in 2020, an increase of 11.71pc.

Total equity attributable to shareholders was $0.96 billion as of end-2021, up 5.45pc from $0.91bn as of end-2020.

Total assets of the group continued to grow reaching $8.08bn as of end-2021, compared with $6.59bn as of end-2020, an increase of 22.72pc.

The group’s total assets and assets under management (AUM) also increased 25pc from $12bn at end-2020 to around $15bn as of end-2021, reflecting continued growth in the group’s existing portfolio and new investments made during the year.

In line with the results, the board of directors has recommended a total dividend of $60m at 6.07pc on par value, divided into 4.57pc cash dividend amounting to $45m and 1.5pc stock dividends of $15m for the shareholders, subject to approval by the general assembly and regulators.

For the fourth quarter ended December 31, 2021 (Q4-2021), the net profit attributable to shareholders was $23.88m, up 8.92pc compared with $21.93m in the fourth 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 $52.25m in fees from placement activities linked to the group’s investments in 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.

Earnings per share for the quarter was 0.72 cents versus 0.64 cents for the comparative quarter of 2020.

Total income for Q4-2021 was $128.14m compared with $109.29m in Q4-2020, a rise of 17.25pc.


Consolidated net profit for the quarter was $24.34m compared with $19.04m in the comparative quarter of 2020, an increase of 27.87pc.

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

Commenting, Jassim Alseddiqi, chairman of GFH, said: “We’re very pleased with the group’s performance for 2021 and the solid growth achieved across the business.

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.

“During the year, we also took important steps to enhance our balance sheet quality. In doing so, we completed the restructuring of our commercial banking business and set the grounds to spin off our real estate and infrastructure assets to a new company, Infracorp, which was announced in January 2022 and will specialise in investing in and managing sustainable infrastructure and real estate assets.

This is an exciting area of opportunity as global economies transition to a more sustainable future and GFH is well-positioned to put its expertise, capital and ethos towards investments that positively contribute to the communities and economies where we are active whilst simultaneously delivering solid returns for the group and our investors. Heading into 2022, we have remained focused on leveraging our strong financial position and pipeline of opportunities to create even greater value for our stakeholders and to do so with even more impact,” he added.

GFH Group chief executive Hisham Alrayes said: “We entered 2021 with strong momentum and continued to successfully diversify and expand our business throughout the year. Significant progress was made across all of our business lines with each and every area strengthening its contributions to the top and bottom-line growth.

We were especially pleased with the performance of our international investment portfolio, which not only showed resilience but consistently strong returns. Investing in downturn proof assets has enabled us to continue to generate steady streams of income for the Group and our investors despite the remaining difficulties from the pandemic and its impact on global markets.

“In total, during the year, we closed more than $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 $15bn for 2021.

To support further growth, we also strengthened our presence in the UK with the appointment of a new CEO as we expand our global investment activities as well as concluding a strategic partnership with Schroders Capital, the private markets investment division of Schroders, the global asset management giant, which will greatly bolster our international investment reach and enhance our access to a broader pool of attractive new opportunities across the defensive sectors on which we are focused. With solid foundations in place, we look forward to stronger performance and results in 2022.




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