GFH reports net profit of $16.12m attributed to shareholders for Q1
MANAMA: GFH Financial Group (GFH), on Tuesday announced its financial results for the first quarter of the year ended March, 31, 2021.
The Group reported net profit atributable to shareholders of $16.12million for the period compared with $5.08 million in the first quarter of 2020, up 217.2%. The increase reflects strengthening across business lines and improved contributions from the Group’s commercial banking and treasury activities, in particular.
Earnings per share for first quarter of 2021 was US cents 0.53compared to US cents 0.15for the first quarter of 2020. Consolidated net profit for the first quarter was $19.34 million compared with $6.78 million in the first quarter of 2020, an increase of 185.2%.
Total equity atributable to shareholders was $0.92 billion at 31 March 2021from $0.91 billion at year-end 2020, up 0.4%. The marginal increase in shareholders’ equity was primarily due to profit for the period and fair value movement in the treasury porfolio. Total assets of the Group were $7.04billion at 31 March2021 compared with $6.59billion at 31 December 2020, an increase of 6.9%.
Total income for the first quarter of 2021 was $90.39 million compared to $69.46 million for the first quarter of 2020, a strong 30.1% rise. Supporting growth was income generated from the placement of deals, sale of assets and increased treasury activities. Total Expenses for the first three months of the year were US$71.05 million, up 13.4% from US$62.68 million during the comparable 2020-period.
Commenting on the result, Jassim Alseddiqi, Chairman of GFH, said, “We’re very pleased with the Group’s first quarter results especially in light of the continuing effects of the pandemic still being felt around the world. Despite this, the first three months of 2021 saw Gfhmake great strides across the business and deliver good growth in profits and income year-over-year. Over the quarter, we continued to grow our retail and investment banking, asset management and treasury businesses as well as our porfolio and presence in key markets including the GCC, UK, Europe and the Us.building on our momentum, we will focus and expect to further accelerate growth, enhance value and strengthen the bottom line in the periods ahead.“
Hisham Alrayes, CEO of GFH, added, “We entered 2021 with a very promising pipeline of opportunities and successfully converted these into trans actions that were welcomed by our investors across the region. In the first quarter, profitability was driven bythe placement of unique and diverse deals including the Group’s C.US$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 porfolio of pre-ipo, high-growth companies that specialise in next generation technologies. Results were also supported by the sale of equity investments and treasury income realized from Sukuks, notes and fixed income.”