GFH sustains profitability in 2015 with net of $12 million

25/02/2016 06:02 AST

GFH Financial Group (GFH) on Wednesday announced its full year financial results for 2015 with a consolidated profit of $29 million before provisions of $17 million, and a net profit of $12.0 million, signaling sustained profitability for the Group.

Total consolidated income for 2015 was $85 million, as compared to $90 million in 2014. Net profit for 2015 was $12 million compared to net profit of $27.3 million for 2014. Operating profit before provisions was $29 million, as compared to $41.5 million in 2014. Total provisions in 2015 stood at $17 million as against $14.1 million in 2014.

Operating expenses were $62.1 million in 2015, in comparison to $59 million in 2014. Commercial banking income attributed to $57.8 million and investment banking income attributed to $20.1 million, while real estate has contributed $5.6 million. Investment banking income of 34 percent increase is due to successful placements of new products by GFH over the past year.

The Group reported a loss of $5.95 million for the last quarter of 2015 compared to a profit of $4.2 million for the last quarter of 2014.

Commenting on the year’s results, Dr. Ahmed Al Mutawa, Chairman of GFH, said: “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 today have been contributed from Commercial Banking and pure investment operations.”

He added: “The second half of 2015 was difficult and a down turn 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.”

Hisham Alrayes, CEO of GFH, 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 $150 million, and started a $200 million California Village Project in Dubai. As part of our investment strategy to capitalize on Saudi Arabia’s growing consumer and retail market, GFH acquired a $48 million operating mall in Jeddah earlier in 2015. GFH’s diversification strategy also led the company to acquire a $108 million industrial real estate portfolio in the United States and a $53 million school in Dubai. In the last couple of years, we have distrusted more than $60 million in dividends and partial exits to our fund investors.

GFH won significant cases in 2015 with totaling amount in excess of $150 million against several parties.

Saudi Gazette