Manama Bahrain: GFH Financial Group BSC (“GFH” or the “Group”) (Bahrain Stock Exchange: GFH) today announced its financial results for the third quarter (“Quarter”) and ending 30 September 2023 (the “Period”).
The group posted a net profit attributable to shareholders of USD 24.31 million for the third quarter of the year, an increase of 1.04% compared to USD 24.06 million in the third quarter of 2022, reflecting a steady improvement. Investment banking income was one of the key factors contributing to the Group’s profitability in the current quarter. Earnings per share were 0.71 cents in the third quarter, compared to 0.73 cents in the comparable quarter of 2022. Total revenue for the third quarter of 2023 was USD 87.53 million, compared to USD 65.90 million for the third quarter of 2022, an increase of 32.82%. Consolidated net profit for the third quarter was $23.86 million, compared to $26.1 million in the third quarter of 2022, a decrease of 8.58%. Total expenses in the third quarter were $63.68 million compared to $39.80 million in the comparable quarter of 2022, an increase of 60.00%.
Net profit attributable to shareholders increased by 19.14% to USD 78.92 million in the first nine months of 2023, compared to USD 66.24 million in the first nine months of 2022. Earnings per share for the period were 2.26 cents, compared with 1.91 cents for the first nine months of 2022. Total revenue for the first nine months of 2023 was $261.29 million, an increase of 38.96% compared to $188.03 million for the same period in 2022. Consolidated net profit for the nine-month period was up 13.39% to $81.05 million compared to $71.48 million in the first nine months of 2022. Total expenses for the period were $180.24 million, up 54.63% from $116.56 million in the nine-month period. From 2022 onwards.
Total equity attributable to shareholders at 30 September 2023 was US$994.17 million, down 0.24% from US$996.60 million at 31 December 2022. The group’s total assets rose 7.99% to US$10.54 billion in 30 US$236 billion. USD on December 31, 2022.
Ghazi Al-Hajri is the Chairman of the Board of Directors of GFH Financial Group
“We are pleased to report good performance and stable growth in the first nine months of the year and stable growth in revenue and profit, which was achieved by good returns generated from global and regional investment activities and contributions from the group’s commercial banking, treasury and private investment activities, this quarter due to higher interest rates. Although performance suffered during the quarter and the rising interest rate environment put pressure on these business lines, they restructured their financing strategies and relied on alternative strategies to limit the impact of rising financing costs. In a challenging market, the Group’s overall growth remained focused on its resilience and continued pursuit of investments and diversification in low-risk sectors. Paying reflects the success of its strategy. The effectiveness of our strategy was further confirmed in a rating review conducted by Capital Intelligence this quarter, where the group’s ratings were reaffirmed as a result of diversification. The assets’ strong geography and lines of business are cited as key drivers of valuations. As we now enter the final months of 2023, the Group is developing promising investment opportunities in key sectors and markets as we expand our presence and build a portfolio of income-generating assets to deliver greater value to investors and shareholders. For the rest of this year and beyond, God willing.”
Hisham Al-Rayis, Chief Executive Officer and Member of the Board of Directors of GFH Financial Group
“In the third quarter of 2023, the Group has made further progress across all business lines, as we continue to work to maximize the value of our investments and attract new investment opportunities. And life sciences, education and food logistics services. In this quarter, the Group’s revenue rose by double digits and profitability increased. Improved. Contributions in the third quarter were largely driven by fees received from our investment banking activities and we benefited from rising interest. Rates that contributed significantly to our investment income this quarter were successful in closing three new deals including the US Opportunity Fund, the Saudi Food Logistics Fund and the Student Housing Fund in the US. In total, during the quarter, more than $361.1 million of the Group’s regional and international funds were invested with investors across the GCC. Given the favorable conditions for long-term structural growth in the GCC region, we continued to seek opportunities and close deals. Key areas we focus on. During the quarter, we further built our regional logistics asset base with the acquisition of a $150 million logistics and industrial portfolio comprising assets in Saudi Arabia and the United Arab Emirates. We continue to focus on the Kingdom of Saudi Arabia and bring many unique opportunities, including opportunities in the healthcare sector, where we are actively working to expand and capitalize on opportunities resulting from the Kingdom’s Vision 2030 economic growth. We look forward to closing the current year with progress in each of our business areas. And our investment portfolios in the GCC countries and the US are priority markets to focus on for further growth.
Most important achievements of business units
GFH operates three core business lines, each of which continues to deliver positive performance and contributions supporting growth in the Group’s overall net income for the third quarter and nine months to 2023.
· In the third quarter, GFH Partners, a subsidiary of the group, successfully completed three new transactions – US Opportunity Fund, US Student Accommodation Fund and Saudi Food Logistics Fund, which provides investors with various investment opportunities.
In the first nine months of 2023, the group’s commercial banking operation, Khaleji Bank B.S.C. (Gulf), sustained profitability as a result of a strategy focused on expanding partnerships, continuous digital transformation and aligning the business model with current trends and developments.
· For the nine-month period, Khaleji posted a net profit of USD 24.95 million, down 13.59% compared to the same period in 2022. Khaleji’s total income increased mainly as a result of higher returns from financial and sukuk assets. Fees and other income.
Treasury and Private Investments:
Performance in the group’s treasury and private investment operations was largely supported by a conservative treasury sector, but suffered from higher funding costs and general market movements during the quarter.
· The treasury portfolio continues to have a positive spread to net profit due to the lower cost of funds received on its books.
·Looking to the future, GFH is looking for opportunities to generate higher returns for its treasury portfolio and diversify its financial resources to support the Group’s growth.
Highlighting ESG aspects During the quarter, GFH continued to implement positive initiatives to further strengthen its commitment to environmental, social and governance practices, the most important of which were:
·Supporting health expansion in Bahrain: GFH and Khaleeji signed an agreement with Royal Medical Services to develop a center of excellence for prostate cancer. The center supports the ambition of the Kingdom’s Vision 2030 to expand, enhance and improve specialized healthcare services in the Kingdom. The center will be equipped with the latest international technologies to enable surgeons to perform surgeries with utmost precision and flexibility.
Support for Entrepreneurs in Saudi Arabia: Saudi Arabia’s GFH Financial Group has partnered with Hope Ventures, the investment arm of Hope Fund, and the producers of “Bebon,” a reality TV show about entrepreneurship. Through this partnership, GFH Finance is supporting the expansion of GFH Finance for its third season in the Kingdom of Saudi Arabia, an initiative that reaffirms GFH’s commitment to entrepreneurship development. Saudi Arabia’s Vision 2030 growth and economic diversification goals.
Promoting sports economy in Bahrain: As part of its efforts to promote sports economy in Bahrain, GFH Financial Group announced its sponsorship of the Manama Masters 3×3 tournament hosted by the International Basketball Federation. November 2023 for the first time in the Kingdom. . By attracting athletes and spectators, this sponsorship furthers the national goals of strengthening Bahrain’s position as a major regional hub and destination for sports tourism.
About GFH Financial Group BSC
GFH Financial Group is one of the well-known financial institutions in the GCC region and its activities include asset management, wealth management, commercial banking and real estate development. The Group’s operations are focused on the Middle East and North Africa, Europe, the United Kingdom and the United States. GFH shares are listed on the Bahrain Stock Exchange, Abu Dhabi Stock Exchange, Kuwait Stock Exchange and Dubai Stock Exchange. For more information, visit the group’s website: www.gfh.com.