GFH Financial Group announced its financial results for the fourth quarter and twelve months ended 31 December 2022.
Net profit attributable to shareholders was US$24.02 million for the fourth quarter of the year versus US$23.88 in the fourth quarter of 2021, an increase of 0.6% after provisions of US$13.4 million. The increase 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. Earnings per share for the quarter remained unchanged at US cents 0.72 from the comparative quarter of 2021. Total income for the fourth quarter was US$147.79 million compared with US$128.14 million in the fourth quarter of 2021, a rise of 15.3%. Consolidated net profit for the fourth quarter was US$26.23 million compared with US$24.34 million in the fourth quarter of 2021, an increase of 7.8%. Total expenses for the quarter were US$121.56 million compared with US$103.80 million in the prior-year period, up 17.1%.
The Group reported net profit attributable to shareholders of US$90.25 million for the full year compared with US$84.22 million in 2021, an increase of 7.2%. The increase is attributed to the investment banking business, significantly enhanced contributions from the commercial banking subsidiary, infrastructure, as well as treasury activities. Earnings per share for the year was US cents 2.65 compared to US cents 2.60 for the full year 2021, an increase of 1.9%. Total income for the year was US$441.67 million, up 10.8% from US$398.75 million for the previous year. Consolidated net profit for the year was US$97.71 million compared with US$92.62 million in 2021, an increase of 5.5%. Total expenses for the year were US$343.96 million compared with US$306.13 million in 2021, an increase of 12.4%.
Total equity attributable to shareholders was US$1 billion at 31 December 2022, up 3.5% from US$0.96 billion at year-end 2021. Total assets of the Group increased by 20.9% to US$9.76 billion at 31 December 2022 compared with US$8.08 billion at 31 December 2021.
In line with the results, the Board of Directors has recommended a total cash dividend of 6% on par value (USD 0.0159 per share), subject to approval by the General Assembly and regulators.
Commenting,Ghazi Al Hajeri, Chairman of GFH, said, “We’re delighted to announce another year of progress and growth delivered by the Group during 2022. Despite a challenging year across global markets, the Group continued to diversify its activities and further improve income generation and profits. Gains made during the year were supported by performance across all our core business lines, despite market volatility and pressure from rising interest rates. The Group continued to grow its global portfolio of assets by undertaking significant new investments, as well as expand its global footprint in the US and the GCC region, where solid fundamentals and a positive macroeconomic environment are driving transformation and creating strong opportunities.”
Mr. Hajeri continued, “We were also very pleased with the Group’s credit rating from S&P Global Ratings, which raised our rating to ‘B’, with a Stable Outlook. This is due to our diversification of income streams, reduction in real estate exposure, and overall financial position. The Group is well placed to continue building on this positive momentum throughout 2023. 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.”
Hisham Alrayes, Group CEO of GFH, added, “This was another milestone year for GFH as we continued to grow our investments, our global footprint and investor and shareholder base off the back of ongoing strong performance and market confidence in the Group and our ability to enhance results year after year. Over US$1.2 billion was placed in investments in the Group’s portfolios during the year, including investments in student housing and medical buildings assets in the US. To support further growth in these areas, we launched a new office in London during the year for the management of our assets in the UK and Europe. We also acquired other specialty asset management businesses in the US – Student Quarters and Big Sky Medical – to further expand our activities and pipeline of well-performing, income-yielding investments in two key sectors.”
He continued, “We also launched our formal presence in Saudi Arabia during the year with new offices and a team now based in Riyadh. Simultaneously, we continued to strengthen our presence and exposure in the UAE. During 2022, we listed our shares on the Abu Dhabi Securities Exchange (ADX), marking GFH’s fourth regional listing, in a move that allows us to further broaden our shareholder base and create even more liquidity. 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. During the year, we took important steps to further digitize our infrastructure and launched the official “GFH Mobile” application. The app offers various services to our clients, bringing them seamless access to investment statements and news on our latest deals and offerings.”
Concluding, Mr. Alrayes, said, “As we look to the year ahead, I’d like to thank our shareholders, investors, partners and dedicated teams for their continued confidence and commitment to GFH.”
Currently, GFH manages over US$17.6 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 https://www.bahrainbourse.com/. Shares of GFH are traded under the ticker “GFH” on the Abu Dhabi Securities Exchange, Bahrain Bourse, Boursa Kuwait and Dubai Financial Market.
