GFH Financial Group B.S.C (GFH) (Bahrain Bourse: GFH) announced its financial results for the first quarter (“the quarter”) of the year ended 31 March 2024.
Net profit attributable to shareholders was US$27.14 million for the first quarter versus US$24.01 million in the first quarter of 2023, an increase of 13.03% reflecting growth in contributions from the Group’s investment banking and treasury and proprietary investment activities as well as contributions from its commercial banking business. Earnings per share for the quarter was US cents 0.77 compared with US cents 0.72 in the first quarter of 2023. Total income was US$162.97 million for the first quarter of the year compared with US$105.06 million in the first quarter of 2023, an increase of 55.13%. Consolidated net profit for the first quarter was US$30.34 million compared with US$24.44 million in the first quarter of 2023, an increase of 24.14%. Total expenses for the quarter were US$89.18 million compared with US$62.50 million in the prior-year period, up 42.69%.
Total equity attributable to shareholders was US$955.67 million at 31 March 2024 down 3.42% from US$989.54 million at 31 December 2023, primarily due to distribution of dividends for the year 2023. Total assets of the Group were US$10.55 billion at 31 March 2024 compared with US$11.12 billion at 31 December 2023, a decrease of 5.13%, due to realignment of the Group’s assets.
Currently, GFH manages over US$20.6 billion of assets and funds including a global portfolio of investments in logistics, healthcare, education and technology in the MENA region, Europe, and North America.
The Group’s financial results in full can be found at https://www.bahrainbourse.com/. Shares of GFH are traded under the ticker “GFH” on the Abu Dhabi Securities Exchange, Bahrain Bourse, Boursa Kuwait and Dubai Financial Market.
Mr. Abdulmohsen Rashed Al Rashed
Chairman, GFH Financial Group
“We’re delighted to announce continued growth and enhanced profitability for the first quarter of 2024, marked by double-digit increases to the top and bottom line. These results reflect the sound contributions made from the Group’s subsidiaries, and strong income generated from placements and fees from the Group’s investment portfolios and treasury activities. Ongoing growth and progress remain rooted in the success of the Group’s strategy and its focus on investing in well-performing defensive sectors and high-growth markets, in the region and internationally, where we have an active and growing presence. Having entered the year with positive momentum, we look forward to further expanding the Group’s investments across core business lines and geographies and generating even greater value for shareholders and investors throughout the remainder of the year.”
Hisham Alrayes
CEO and Board Member, GFH Financial Group
“We are pleased to announce another quarter of growth and solid performance for the first three months of the year, where income increased by 55.1% and consolidated net profits rose by 13% year over year. Gains made during the quarter are the result of further growth and enhanced contributions from our investment banking business and treasury and proprietary investments, as well as healthy income generated from our commercial banking activities.
“During the quarter, we successfully made and placed new investments in recession-proof sectors and high-growth regional and global markets, worked to maximise the value of our existing portfolios, and secured several well-timed and profitable exits. GFH Partners closed additional new investments in the US in our key medical clinics and student housing sectors for US$450 million, as well as in the fast-growing electrical infrastructure services sector. We also generated solid income from the partial sale of our stake in Gulf Holding Company K.S.C.C and sold a 25% stake in Khaleeji Bank, which saw us bring on board new strategic shareholders as we work to take the Bank to the next level.”
Mr. Alrayes, added, “Across the Group’s business lines, we remain focused on accelerating our strategy for non-organic growth through new investments and the acquisition of funds, portfolios, and other financial institutions, such as the investment portfolios of Ithmaar Holding that we are currently evaluating. Additionally, we have an attractive pipeline of opportunities. In the US, GFH Partners is working closely with our specialist asset management subsidiaries on-the-ground to identify and close new transactions to grow our existing portfolios. Similarly, in the GCC markets, and particularly, Saudi Arabia, GFH Capital S.A. is looking to build our presence and contributions to the growth of priority Vision 2030 sectors such as healthcare, education, and logistics, where we have deep expertise and a track record of success. We look forward to further ramping up the Group’s growth trajectory throughout 2024.”
Business Unit Highlights
The Group continued to deliver sound performance and contributions from across its core business lines during the first quarter of 2024.
Investment Management:
- During the first quarter, the Group’s investment banking activities generated US$46.16 million in income, through various deal across the region and beyond, including investment in a market leading, high growth company in the US electrical infrastructure services sector, which serves a number of blue-chip clients in fast-growth end- markets such as renewable energy, battery energy storage, utilities, industrial and more. GFH Partners, the Group’s global real estate investment arm, concluded investments totaling US$450 million in the medical clinics and student housing segments of the US real estate market, which are each benefiting from proven rental growth, low national vacancy, and market stability.
- Income from proprietary investments included proceeds from the partial sale of investments in subsidiaries and land parcels.
- The Group acted as one of the Joint Lead Managers and bookrunners for the successful issuance of a US$500 million 5-year sukuk by Arabian Centers Company (trading as Cenomi Centers), Saudi Arabia’s largest shopping mall owner, developer, and operator.
Commercial Banking:
Treasury & Proprietary Investments:
- Contributions from the Group’s treasury and proprietary investment activities significantly grew year-over-year to US$78.06 million despite a US$7.9 million mark-to-market loss during the first quarter.
ESG Highlights
A sharp focus on sound Environmental, Social and Governance (ESG) practices continued to guide the Group’s activities. During the first quarter of the year, the Group invested in the following initiatives:
- Contribution to Global Leadership Platforms: The Group extended for a further three years its partnership with the Future Investment Initiative (FII) Institute as a Strategic Partner. Following a highly impactful first year, GFH will continue to leverage FII’s unique platform in alignment with the Group’s investments in high impact sectors and its growing global reach.
- Sports and Tourism Related Partnerships: Supporting the Bahrain Olympic Committee and World Aquatics, the Group announced it will host the first stop of the highly anticipated World Aquatics High Diving World Cup 2024 at its Harbour North development in the Bahrain Harbour from 21 to 22 September. The partnership furthers GFH’s ongoing support and backing for regional and global athletics and the attraction of sports tourism to Bahrain.
- Community Sustainability: GFH partnered with Al Areen Raffles to create a sustainable fruits and herbs garden at the property. Kicking off a series of planned initiatives was the planting of fruit trees at the hotel’s garden during an Iftar event. The aim is to create a sustainable fresh source for Al Areen Raffles restaurants whilst contributing to the “greening” of the area.
