GFH Reports $54.62 Mln Net Profit in H1 2023

GFH Financial Group. (Asharq Al-Awsat)
GFH Financial Group. (Asharq Al-Awsat)
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GFH Reports $54.62 Mln Net Profit in H1 2023

GFH Financial Group. (Asharq Al-Awsat)
GFH Financial Group. (Asharq Al-Awsat)

GFH Financial Group reported a net profit attributable to shareholders of $30.61 million for the second quarter of the year, up 32.74.% compared with $23.06 million for the second quarter of 2022 reflecting continued steady growth and progress.

Major contributions included income generated from the placement of the Group’s global and regional investments, commercial banking business and treasury activities.

Earnings per share for the second quarter was US cents 0.86 compared to US cents 0.66 for the comparative quarter of 2022.

Total income for the second quarter of 2023 was $86.83 million, a rise of 54.7%. Consolidated net profit for the second quarter was $32.75 million, an increase of 25.8%.

Total expenses for the second quarter were $54.08 million, an increase of 79.76%.

Net profit attributable to shareholders increased by 29.5% to $54.62 million for the first half of 2023 in line with growth in contributions from all business lines.

Total equity attributable to shareholders was $973.58 million on 30 June 2023 down 2.3%. The decrease was the result of dividends paid for the previous year along with fair value changes and changes in treasury shares.

Chairman of GFH Financial Group Ghazi Al Hajeri said: “We’re pleased to report another quarter of solid growth in income and profitability and good results for the first half of 2023 with continued stable growth across the Group’s three business lines.”

He added: “The Group’s results and resilience are supported by a sharp thematic focus and concentration in attractive and defensive sectors and markets, where we will continue to build our presence.”

“Building on our positive momentum, we will continue to make strides across the business with the aim of further diversifying our operations, growing our revenues, and building our portfolio of income-generating assets in key markets and across our core focus areas. As we do so, we remain committed to further strengthening our performance and returns for our shareholders.”

For his part, CEO and Board Member, GFH Financial Group Hisham Al-Rayes stated that “The second quarter of the year saw GFH’s investments continue to deliver enhanced returns and value for the Group, our shareholders and investors. We are pleased with the strong growth in both income generation and profitability as we execute our strategy and take decisive steps towards further growth across our key business lines – investment management, commercial banking and treasury, and proprietary investments.”

“We aim to build on these core areas and are particularly focused at present on accelerating the expansion of the Group’s MEA and GCC-based regional investment platforms. This includes those in high-growth, defensive sectors such as healthcare and life sciences, education, and logistics – which will allow us to capitalize on long-term structural growth tailwinds in the region and our strong track record and expertise gained through decades of investing in global markets," he added.

GFH operates three main business lines that each continue to deliver positive performance and strong contributions and have supported growth in the Group’s top and bottom line during the second quarter and half-year 2023.



Boeing Reports $11.8 bln Loss, Largest since 2020

The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
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Boeing Reports $11.8 bln Loss, Largest since 2020

The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo

28 (Reuters) - Boeing on Tuesday reported an annual loss of $11.83 billion, its largest since 2020, as it grappled with problems at its commercial and defense units and the fallout from a crippling strike by US West Coast factory workers.

The loss demonstrates the challenges facing CEO Kelly Ortberg in turning around the planemaker as it cedes more ground to rival Airbus in the delivery race and comes under the crosshairs of regulators and customers following a series of missteps.

Ortberg, who took the reins of the planemaker in August, however, said the company was making progress on restoring stability to its struggling production lines after a harrowing mid-air accident in 2024 raised concerns about the safety of its jets.

Boeing's fourth-quarter results included "disappointing" charges in several fixed-price defense programs, Ortberg said, while adding that the company was "now more proactive and clear-eyed on the risks" to the programs, Reuters reported.

The company's Defense, Space & Security business has lost $3.15 billion in the first nine months of 2024.

The planemaker last week flagged an overall fourth-quarter loss of about $4 billion, nearly triple the size expected by Wall Street.

Ortberg reiterated the company's four-part plan to turn the business around including undertaking a "multi-year journey" to fix Boeing's culture, "perhaps the most important change we need to make."

After banking record-high profits in the 2010s, Boeing has bled more than $20 billion since 2019 after two fatal crashes of its best-selling 737 MAX jet triggered production quality and safety concerns and worries that it had misled regulators during the plane's certification process.

The COVID-19 pandemic further squeezed the company, while the mid-air panel blowout on a nearly new 737 MAX in early 2024 dragged Boeing into another crisis.

"We have completed deep dives on all of our challenging fixed-price development programs," Ortberg said on Tuesday in a letter to employees.

Ortberg added Boeing has made progress with its supply chain and has returned to an output rate of five 787 jets per month at the end of 2024, despite delays in areas like seats.

Boeing's commercial planes division, now focused on getting three of its models certified, has a good handle on fixing a thrust link issue uncovered on its 777X widebody, which resumed flight tests earlier this month, he added.

Ortberg was guarded in his message about the status of solving problems with anti-icing systems on the 737-7 and -10 models. The company is "still working through the testing phase focusing on finalization of the anti-icing design solution," he said.

The company continues to invest in "core businesses while streamlining our portfolio in areas that are not core to our future," he said.