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 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.
“Having entered 2023 with strong momentum, we’re delighted to announce another year of growth marked by enhanced profitability and a double-digit increase in income. Our results reflect the robust nature of our fundraising efforts and investment portfolios, and the Group’s ongoing achievements in creating value for our shareholders. And we are pleased to announce another solid cash dividend for the year of 6.2% on par value for all our shareholders. It has been an unwavering focus on the Group’s strategy that has allowed us to build our core businesses and expand our investment portfolios in key defensive sectors and geographies, especially in the GCC and US. Our agility and ability to deliver growth year after year continues to be rewarded and we are proud of the strong investor and market confidence in the Group. Having ended the year with positive momentum, we look forward to continuing to achieve greater value for our investors and shareholders in 2024 and beyond. We will continue to prudently grow our portfolio of investments and strategic assets across our key markets of focus in the region and internationally,” Ghazi Al Hajeri, Chairman, 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.
