Tuesday 19 February 2019

Sheikh Ahmed bin Khalifa Al-Khalifa and Hisham Alrayes

GFH reports net profit of $104m in 2017

MANAMA, February 14, 2018

Bahrain-based GFH Financial Group (GFH), a leading financial group in the region, has posted a net profit of $104.2million for 2017, compared with net profit of $217.12 million for the previous year.

The company also reported a consolidated net profit of $103.2million for the year as compared with $233.05 million for the prior-year.

These results, in real terms, reflect year-on-year growth in all areas of the business when excluding $464 million in one-off income from the settlement of litigation by the Group in the fourth quarter of 2016.

Net profit attributable to shareholders for the fourth quarter of 2017 was $16.9 million versus $213.18 million in the fourth quarter of 2016. Consolidated net profit for the fourth quarter was $12.1million versus $223.34 million in the fourth quarter of 2016.

For the full year 2017, the Group’s total consolidated revenue was $211.65million as compared to$ 115 million in 2016, excluding one-off recovery gains achieved in 2016 of $ 464 million. This reflects a healthy increase in revenue of 84 per cent year-on-year. Supporting revenue growth was higher investment banking income from exits and placements. In line with GFH’s strategy, the Group also achieved successful exits for its clients amounting to $1.2 billion during the year from infrastructure investments and US multi-family assets based in Houston and Atlanta.

During the year, GFH has also created a strategic partnership with Inspired Education Group, a leading international education operator, which acquired 50 per cent of GFH’s education portfolio.

Total operating expenses for the year were $99.18million down from$124.8 million in the prior year. Total assets increased from $3.30 billion in 2016 to $4.11 billion for 2017. The Group ended the year with a capital adequacy ratio of 17.36 per cent and Return on Equity (ROE) ratio of 9.1 per cent.

Further steps were also taken in 2017 to optimize overall financing liabilities, improve liquidity and enhance the balance sheet. The success of these efforts resulted in GFH receiving an upgraded credit rating of “B” with a positive outlook from Fitch, the international credit rating agency, based on its strengthened capital position and the reduction of associated legacy uncertainties.

Sheikh Ahmed bin Khalifa Al-Khalifa, chairman of GFH, said: “We are delighted with the solid performance and profitably reported during 2017 and further recognition by the market of the sound financial position and progress at GFH. The continued operational revenue growth across our business lines underscores the strength of our strategy and success in diversification. “

“In line with these results and the Group’s progressive dividend policy, we are happy to announce the Board’s recommendation for the distribution of an 8.7 per cent cash dividend ($85million) to shareholders, subject to approval at the General Assembly and by our regulators. The Group’s continued strong shareholder returns underscores our commitment to delivering value on which we will remain focused throughout 2018. I would like to take this opportunity to extend our gratitude to our investors and shareholders for their ongoing confidence in GFH and to our management and staff for their dedication in the past year,” he added.

Hisham Alrayes, CEO of GFH, said: “We are pleased with the strong progress made and the significant growth achieved in our Investment Banking and Real Estate activities during 2017. We continued to effectively advance GFH’s position as a leading player in the region’s financial sector and infrastructure development.”

“Notably in 2017, we focused on undertaking key exits for our clients in our infrastructure portfolio and US funds. We also saw further investments in our US real estate and regional education portfolio and have completed the successful listing of our commercial banking subsidiary, KHCB, on the Dubai Financial Market. Under our real estate subsidiary, we have been able to substantially advance our landmark Villamar and Harbour Row projects in Bahrain, which support the government’s efforts to bolster the Kingdom as a tourism and hospitality destination.

“Building on our strong momentum and financial position, GFH looks toward achieving another successful year, Inshalah, where we will target strategic acquisitions that add new lines of business and markets to GFH. We will also look to achieve further profitable exits from some of our direct investments. I would like to thank our shareholders and investors for their continued partnership and confidence in GFH and our Board and regulators for their guidance and support. I would also like to acknowledge the outstanding contributions of our employees and partners to the successes of the past year and look forward to delivering even stronger results and profitably in the year ahead,” Alrayes concluded. – TradeArabia News Service

Tags: Bahrain | GFH | Net profit 2017 |

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