GFH posts net profit of USD 23.17 million
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
GFH Financial Group (GFH) posted third quarter net profit attributable to shareholders of USD 8.11 million compared with USD 19.84 m in the third quarter of 2019, a decrease of 59.1 per cent.
The decrease is predominantly attributable to the worldwide Covid-19 pandemic, which had an impact across the Group’s business lines.
Earnings per share was US cents 0.24 compared to US cents 0.60 for the comparative quarter of 2019.
Third quarter consolidated net profit was USD 9.92 m compared with USD 17.22 m in the year ago quarter, a decrease of 42.4pc.
Quarterly Total income was USD 67.58 m compared to USD 85.89 m for the third quarter of 2019, a decrease of 21.3per cent.
Major contributions for the third quarter of 2020 included income from the placement of the Group’s US deal and advisory fee income.
Total expenses for the third quarter of 2020 was USD 57.65 m compared to USD 68.66 m in the comparative period of 2019, a significant drop of 16pc.
Nine-month net profit attributable to shareholders was USD 23.17 m compared with USD 64.53 m in the first nine months of 2019, a decrease of 64.1pc.
The primary reason for this decrease was the lower contributions from the Group’s investment banking and real estate operations, as well as fair value movements in the Group’s treasury portfolio.
Earnings per share was US cents 0.69 compared to US cents 1.91 in the prior year period.
Consolidated net profit was USD 30.31 m compared with USD 61.22 m a year ago, a decrease of 50.5pc. Total income was USD 214.10 m versus USD 244.99 m for the 2019 period. Despite a decrease of 12.6pc in the income, all business lines have contributed to the income despite difficult market conditions that have characterized 2020.
Total expenses were USD 183.79 m up marginally by 0.3pc from USD 183.31 m for the first nine months of 2019, reflecting the cost streamlining measures undertaken by the Group.
“For the first nine months of 2020, we remain encouraged by the resilient nature of the Group’s diverse business model. While net profit for the period was affected by the fallout of the Covid-19 pandemic, the ability of the Group to deliver solid income and results is an important demonstration of the underlying strength of our strategy and progress that continues to be made across each and every one of our business lines,” GFH Chairman Jassim Alseddiqi said.
“Despite these challenges, we are extremely proud to have continued to make progress across the business in line with plans and our focus on further building and diversifying our position in key defensive sectors and in core markets,” said GFH CEO Hisham Alrayes.
“As we go forward, we expect enhanced activity in our investment banking and commercial banking businesses as well as treasury and real estate operations to have a positive impact on our performance and results.”