Manama: Mahmood Rafique, Editor: GFH Financial Group B.S.C (GFH) has reported a net profit of $102.86million for the year 2023, an increase of 13.97 per cent over the previous year. The Group has reported a surge in income of 24.1 per cent in the year 2023.
The Group has yielded a double-digit growth in income that enhances profitability for 2023, thanks to the robust yield by the subsidiaries, associates, and investments.
The board proposed a total cash dividend of 6.2per cent on par value (US$0.0164 per share) for 2023, subject to the approval by the shareholders’ general assembly.
“We are pleased to announce another year of growth and good performance, growth in income by 24.1% and profits by 14% during 2023. Our results were supported by sound contributions throughout the year from our key lines of business, including – investment banking, commercial banking, treasury and proprietary investments. We remained agile and innovative in our approach, constantly refining our operating model to navigate the market conditions and business opportunities. Throughout the year, we focused on further building our positions in attractive, recession-proof sectors in the local and global markets. During the quarter, we successfully closed three new strategic transactions in the healthcare and logistics sectors in Saudi Arabia, where we see enormous potential for value creation, and the opportunity to leverage positive macroeconomic trends. Across all we do, we are working to increase our contributions to sustainable growth and development of the sectors and markets in which we invest and for the benefit of all our stakeholders. In conclusion, I’d like to extend our gratitude to our shareholders, investors, regulators, and partners for their continued confidence in GFH. We are also proud of our employees across the Group for delivering such strong performance during 2023 and remain confident in their ability to execute our strategy in 2024,” Hisham Alrayes, CEO and Board Member, GFH Financial Group, said.
The Group reported net profit attributable to shareholders of US$102.86 million for the full year compared with US$90.25 million in 2022, an increase of 13.97%. The gain is attributed to growth in the investment banking business, contributions from the commercial banking subsidiary, proprietary income, as well as treasury activities. Earnings per share for the year were US cents 2.95 compared to US cents 2.65 for the full year 2022, an increase of 11.32%. Total income for the year was US$369.53 million, up 24.10% from US$297.76 million for the previous year. Consolidated net profit for the year was US$105.23 million compared with US$97.71 million in 2022, an increase of 7.69%. Total expenses for the year were US$264.30 million compared with US$200.06 million in 2022, an increase of 32.11%.
Total equity attributable to shareholders was US$989.54 million on 31 December 2023, down 0.71% from US$996.60 million at year-end 2022. Total assets of the Group increased by 13.93% to US$11.12 billion on 31 December 2023 compared with US$9.76 billion on 31 December 2022.
The strong performance, the statement confirms, is attributable to a sustained momentum in investment banking throughout the year, including the successful close in fourth quarter of the Group’s third US Medical Clinics portfolio, and new healthcare and logistics transactions in Saudi Arabia.
Also, exists from several investments including the sale of the Group’s first diversified US Student Portfolio acquired in 2021, delivering 10.4 per cent ROI to GFH’s investors. As well as a partial exits from proprietary investments in Bahrain to strategic partners in Al Areen Park Hotel and Resort, the Group says in a statement.
Net profit attributable to shareholders was US$23.94 million for the fourth quarter of the year versus US$24.02 million in the fourth quarter of 2022, a decrease of 0.32% resulting from lower contribution from the commercial banking subsidiary during the quarter.
Earnings per share for the quarter were US cents 0.69 compared with US cents 0.74 in the fourth quarter of 2022. Total income was US$108.24 million for the fourth quarter of the year with sound contributions made from the Group’s subsidiaries, and income from placements and fees of investment portfolios, and treasury activities. This is compared with US$109.73 million in the fourth quarter of 2022, a decrease of 1.36%. Consolidated net profit for the fourth quarter was US$24.18 million compared with US$26.23 million in the fourth quarter of 2022, a decrease of 7.82%. Total expenses for the quarter were US$84.06 million compared with US$83.50 million in the prior-year period, up 0.67%.
At present, GFH manages over US$21 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.
