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.



Japan Sets New 2035 Emissions Cut Goal 

A chimney is seen at the Keihin Industrial Zone as Mount Fuji (background L), Japan's highest mountain at 3,776 meters (12,388 feet), looms in the background as viewed from the observation deck of Kawasaki Marien in Kawasaki on January 24, 2022. (AFP)
A chimney is seen at the Keihin Industrial Zone as Mount Fuji (background L), Japan's highest mountain at 3,776 meters (12,388 feet), looms in the background as viewed from the observation deck of Kawasaki Marien in Kawasaki on January 24, 2022. (AFP)
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Japan Sets New 2035 Emissions Cut Goal 

A chimney is seen at the Keihin Industrial Zone as Mount Fuji (background L), Japan's highest mountain at 3,776 meters (12,388 feet), looms in the background as viewed from the observation deck of Kawasaki Marien in Kawasaki on January 24, 2022. (AFP)
A chimney is seen at the Keihin Industrial Zone as Mount Fuji (background L), Japan's highest mountain at 3,776 meters (12,388 feet), looms in the background as viewed from the observation deck of Kawasaki Marien in Kawasaki on January 24, 2022. (AFP)

Japan Tuesday pledged to slash greenhouse gas emissions by 60 percent in the next decade from 2013 levels but climate campaigners said the target fell short of what was needed under the Paris Agreement to limit global warming.

Under the Paris accord, each country is supposed to provide a headline figure to the United Nations for cutting heat-trapping emissions by 2035, and a detailed blueprint for how to achieve this.

Japan is heavily dependent on imported fossil fuels as the world's fifth largest single-country emitter of carbon dioxide after China, the United States, India and Russia.

On Tuesday Tokyo's environment ministry said the country would slash emissions 60 percent by the 2035 fiscal year.

The world's fourth-largest economy also aims to cut emissions by 73 percent by fiscal 2040 as part of its new Nationally Determined Contribution (NDC) -- a voluntary pledge to be submitted to the UN later on Tuesday.

Nearly 200 nations had been required to deliver their fresh climate plans by February 10 but just 10 did so on time, according to a UN database tracking the submissions.

The Japanese ministry said Tuesday that its "ambitious targets (are) aligned with the global 1.5 degree Celsius goal and on a straight pathway towards the achievement of net zero by 2050".

But Masayoshi Iyoda from international environmental group 350.org noted that scientists say an emissions cut of 81 percent by 2035 is needed for Japan to honor its commitments to the 1.5 degree objective.

"This is a major failure in Japan's attempt to transition to a future of renewable energy that is fair and just," he told AFP.

Kazue Suzuki of Greenpeace Japan also said the new target was "far too low", calling for a 78 percent reduction given "our responsibility as an industrially advanced country".

- Renewable future? -

UN climate chief Simon Stiell has called the latest round of national pledges "the most important policy documents of this century".

Yet just a handful of major polluters handed in upgraded targets on time, with China, India and the European Union the biggest names on a lengthy absentee list.

There is no penalty for submitting late targets, which are not legally binding but act as an accountability measure to ensure countries are taking climate change seriously and doing their fair share toward achieving the Paris goals.

In 2016, Japan committed to a 26 percent reduction in emissions by 2030. It strengthened this in 2021 to 46 percent by 2030 compared to 2013 levels.

The Japanese government also on Tuesday approved its latest Strategic Energy Plan -- which includes an intention to make renewables the country's top power source by 2040.

Nearly 14 years after the Fukushima disaster, Japan also sees a major role for nuclear power to help it meet growing energy demand from AI and microchip factories.

So a previous pledge to "reduce reliance on nuclear power as much as possible" was dropped from the new plan.

A draft plan released in December had said Japan would jointly promote renewable energy and hydrogen fuel with its ally the United States.

But after President Donald Trump pulled Washington out of the Paris Agreement last month, mentions of a US-led clean economy framework were deleted.

"We've made certain tweaks" following Trump's announcements, an industry ministry official told reporters Monday.

But "it doesn't mean Japan's broader efforts towards a 'green transformation' will be changed significantly", he said.

Nearly 70 percent of Japan's power needs in 2023 were met by power plants burning coal, gas and oil -- a figure Tokyo wants to slash to 30-40 percent over the next 15 years.

Almost all these fossil fuels must be imported, at a cost of around $470 million per day according to Japanese customs.

Under the new plans, renewables such as solar and wind are expected to account for 40-50 percent of electricity generation by 2040.