Bahrain’s GFH fourth-quarter profit up on expanding portfolio

Last year, more than $1.2 billion was placed in investments across the group’s global business units

GFH's total income in the fourth quarter rose more than 15 per cent to $147.79 million. AFP

GFH Financial Group, an investment bank based in Bahrain, reported a slight increase in its fourth-quarter net profit as the company continues to expand globally and boost its portfolio.

Net profit attributable to the shareholders of the bank for the quarter ended in December rose 0.6 per cent to $24 million after provisions of $13.4 million, the company said in bourse statement on Thursday.

The increase in profit was the “result of income contribution from the group’s subsidiaries as well as income generated from the placements and fees of investment portfolios and sale of Infracorp sukuks”, it said.

Total income in the fourth quarter climbed more than 15 per cent annually to $147.79 million.

“Despite a challenging year across global markets, the group continued to diversify its activities and further improve income generation and profits,” said Ghazi Al Hajeri, chairman of GFH.

“Gains made during the year were supported by performance across all our core business lines, despite market volatility and pressure from rising interest rates.

“With strong foundations and geographic presence, we expect to accelerate growth and further enhance our ability to create opportunities and generate value for our investors and shareholders throughout the coming year,” Mr Al Hajeri said.

Listed on Bahrain Bourse, Dubai Financial Market, Abu Dhabi Securities Market and Boursa Kuwait, GFH manages more than $17.6 billion of assets and funds including a global portfolio of investments in logistics, health care, education and technology in the Middle East and North Africa region, Europe and North America.

Last year, it spun out its infrastructure and real estate assets into Infracorp with capital of $1.1 billion. The platform currently manages a portfolio of nearly $3 billion in infrastructure assets, which includes land in the GCC, North Africa and South Asia.

Net profit attributable to shareholders for the full year rose more than 7 per cent to $90.25 million, GFH said.

“The increase is attributed to the investment banking business, significantly enhanced contributions from the commercial banking subsidiary, infrastructure, as well as treasury activities,” the company said.

Total income for the year surged nearly 11 per cent to $441.67 million while expenses grew more than 12 per cent to $343.96 million.

Last year, more than $1.2 billion was placed in investments across the group’s portfolio, including investments in student housing and medical buildings assets in the US, said Hisham Alrayes, group chief executive of GFH.

The company also launched a new office in London for the management of its assets in the UK and Europe, and acquired other specialty asset management businesses in the US — Student Quarters and Big Sky Medical — to further expand its activities.

GFH launched its formal presence in Saudi Arabia during the year with new offices and a team based in Riyadh.

“As our investor base and business continue to grow, we are also focused on finding new ways to enhance efficiency and better meet the needs of our clients,” Mr Alrayes said.

The bank said the board of directors has recommended a total cash dividend of 6 per cent on par value ($0.0159 per share), subject to approval by the General Assembly and regulators.