GFH net profit increase 13.97% for 2023 attributable to shareholders totalling to US$ 102.86 million

Strong double-digit growth in income and enhanced profitability for 2023 supported by contributions across the Group’s subsidiaries, associates, and investments

GFH Financial Group announces its financial results for the fourth quarter and twelve months ended 31 December 2023.

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%.

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 was 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 at 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 at 31 December 2023 compared with US$9.76 billion at 31 December 2022.

In line with the Group’s strong results, the Board of Directors has recommended a total cash dividend of 6.2% on par value (US$0.0164 per share), subject to approval by the General Assembly and regulators.

Currently, 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.

The Group’s financial results in full can be found at Shares of GFH are traded under the ticker “GFH” on the Abu Dhabi Securities Exchange, Bahrain Bourse, Boursa Kuwait and Dubai Financial Market.

Ghazi Faisal Al Hajeri, Chairman, GFH Financial Group

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.”

Hisham Alrayes, CEO and Board Member, GFH Financial Group said:

“We are pleased to announce another year of growth and good performance, growing income by 24.1% and profits by 14% during 2023. Our results were supported by sound contributions throughout the year from our key lines of business, including – investment banking, commercial banking, treasury and proprietary investments. We remained agile and innovative in our approach, constantly refining our operating model to navigate the market conditions and business opportunities. Throughout the year, we focused on further building our positions in attractive, recession-proof sectors in the local and global markets. During the quarter, we successfully closed three new strategic transactions in the healthcare and logistics sectors in Saudi Arabia, where we see enormous potential for value creation, and the opportunity to leverage positive macroeconomic trends. Across all we do, we are working to increase our contributions to sustainable growth and development of the sectors and markets in which we invest and for the benefit of all our stakeholders. In conclusion, I’d like to extend our gratitude to our shareholders, investors, regulators and partners for their continued confidence in GFH.  We are also proud of our employees across the Group for delivering such strong performance during 2023 and remain confident in their ability to execute our strategy in 2024.”