GFH Financial Group said its financial results for the first quarter of this year showed another period of strong profitability and continued progress in the strengthening of its operating platform and financial position.

GFH reported a net profit of $6 million for the quarter, compared with $2.5 million for the same quarter in the previous year, an increase of 140 per cent, said a report in the Gulf Daily News (GDN), our sister publication.

Total income for the period was $22.9 million compared with $16.1 million during the first quarter of 2014. The quarter's strong results were an outcome of the strong performances across the investment banking, commercial banking and industrial segments of the group.

Investment banking business generated income from the placement of the group's investments, which were fully placed with clients during the quarter.

Commercial banking business saw income increasing from $7.6 million to $11.4 million as a result of increased business, whilst the industrial business's revenue increased from $22.5 million to $28.2 million as a result of record sales. Operating costs for the first three months of the year were $16.8 million as compared to $13.6 million in the previous year.

The first quarter's results primarily include financial results of commercial banking, industrial investment and other subsidiaries of GFH which were consolidated into the group's results during the first quarter, following a change in the AAOIFI accounting standard FAS-23.

"We are pleased to announce another quarter of strong profitability at the group and an ongoing progress in establishing GFH as a full-fledged and diversified financial group," chairman Dr Ahmed Al Mutawa said.

"These results underscore the strength of our strategy and demonstrate that the actions we have taken are continuing to pave the way for a stronger future," he added.

"Having entered 2015 in a decent financial and operating position, we are pleased with the ongoing success of our strategy and the growth achieved across our four core business lines - investment banking, commercial banking, real estate development and industrial activities," chief executive Hisham Alrayes said.

"During the quarter, we successfully closed and placed a new income generating real estate opportunity which was greatly welcomed by the investors.

"At the same time, we also made progress on advancing existing projects. We are continuing to evaluate additional income generating opportunities in 2015," he added.

GFH in the coming months looks to continue to implement its new strategy, the core of which focuses on concluding a number of acquisitions that will help to further stabilise the balance sheet and enable the group to deliver greater returns to investors. - TradeArabia News Service