GFH posts $12m net profit

28/02/2016 07:53 AST

GFH Financial Group (GFH) yesterday announced its full-year financial results for 2015 with a consolidated profit of $29 million before provisions of $17m, and a net profit of $12m, signalling sustained profitability for the group.

The consolidated net profit for 2015 was $12m compared with $27.3m for 2014. For 2015, the net loss attributable to GFH shareholders was $5.5m, as compared with a profit of $15m in 2014. The loss per equity share was 0.25 cents in 2015, as compared with a profit of 1.02 cents in 2014.

Total consolidated income for 2015 was $85m, as compared with $90m in 2014. Operating profit before provisions was $29m, as compared with $41.5m in 2014. Total provisions in 2015 stood at $17m as against $14.1m in 2014. Operating expenses were $62.1m in 2015, in comparison with $59m in 2014. Commercial banking income attributed to $57.8m and investment banking income attributed to $20.1m, while real estate has contributed $5.6m.

Investment banking income of 34 per cent increase is due to successful placements of new products by GFH over the past year. The group reported a loss of $5.95m for the last quarter of 2015 compared with a profit of $4.2m for the last quarter of 2014.

“Over the last few years, GFH has made strategic initiatives to overhaul its business and position as a leading financial services group in the region. These efforts have led the group towards continuous growth, and we are pleased to announce that our results have been contributed from commercial banking and pure investment operations,” chairman Dr Ahmed Al Mutawa said.

“The second half of 2015 was difficult and a downturn in the market that has prepared us to make some provisions which we hope to recover in the short term. GFH continues to be on track and achieve stable levels of profitability. The regional business climate requires a great degree of adaptability and foresight to consistently deliver good returns,” Dr Al Mutawa said.

“With significant investments and flagship projects, 2015 was a prolific year for GFH with focused investments in education, residential and retail sectors. The group has launched its Harbour Row project worth $150m, and started a $200m California Village project in Dubai. As part of our investment strategy to capitalise on Saudi Arabia’s growing consumer and retail market, GFH acquired a $48m operating mall in Jeddah earlier in 2015. GFH’s diversification strategy also led the company to acquire a $108m industrial real estate portfolio in the US and a $53m school in Dubai. In the last couple of years, we have distributed more than $60m in dividends and partial exits to our fund investors,” chief executive Hisham Alrayes said.

“GFH won significant cases in 2015 with totalling amount in excess of $150m against several parties. Such recoveries will generate superior returns to our shareholders over the short period to come.

“As we look forward to 2016, GFH aims to build on the new platform that created successful year by exploring investment opportunities which have the potential to offer high returns to our investors and shareholders. We have entered 2016 with a challenging macro environment, but we are confident that we will successfully navigate and overcome the challenges with our prudent investment and diversification strategy.”

Gulf Daily News