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Bahrain: GFH Financial Profits Up 217%

Bahrain: GFH Financial Profits Up 217%

Wednesday, 12 May, 2021 - 09:00
CEO of GFH Financial Group Hisham al-Rayes (Asharq Al-Awsat)

GFH Financial announced Tuesday its financial results for Q1 2021, which ended on March 31.

The Group reported net profit attributable to shareholders of $16.12 million compared with $5.08 million in Q1 2020, up 217.2 percent.

The Manama-based Group attributed the increase to its performance across business lines and improved contributions from its commercial banking and treasury activities, in particular.

“Earnings per share for Q1 2021 was 0.53 cents compared to 0.15 cents for Q1 2020.”

Consolidated net profit for Q1 2021 amounted to $19.34 million compared with $6.78 million in Q1 2020, an increase of 185.2 percent, it explained.

It further pointed out that the total equity attributable to shareholders was $0.92 billion by March 31, from $0.91 billion at year-end 2020, up 0.4 percent.

The marginal increase in shareholders’ equity was primarily due to profit for the period and fair value movement in the treasury portfolio, it said.

Total assets of the Group were $7.04 billion by March 31, compared with $6.59 billion at on December 31, 2020, an increase of 6.9 percent.

“We’re very pleased with the Group’s first quarter results especially in light of the continuing effects of the pandemic across the world,” said Chairman of GFH Jassim al-Seddiqi.

“Despite this, the first three months of 2021 saw GFH make great strides across the business and deliver good growth in profits and income year-over-year.”

Over the quarter, the Group continued to grow its retail and investment banking, asset management and treasury businesses as well as its portfolio and presence in key markets including the GCC, UK, Europe and the US, he noted.

“Building on our momentum, we will focus and expect to further accelerate growth, enhance value and bolster the bottom line in the periods ahead.”

CEO of GFH Hisham al-Rayes, for his part, said the Group entered 2021 with a very promising pipeline of opportunities and successfully converted these into transactions that were welcomed by its investors across the region.

In the first quarter, he added, profitability was driven by the placement of unique and diverse deals including the Group’s $135 million acquisition of a mission-critical distribution facility in Chicago, leased to Michelin North America, as well as the sale of GFH’s US-based portfolio of pre-IPO, high-growth companies that specialize in next generation technologies.

“Results were also supported by the sale of equity investments and treasury income realized from Sukuks, notes and fixed income,” he concluded.

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