GFH posts Q3 net profit of US$24.4m

GFH Financial Group (GFH) yesterday reported a third-quarter net profit attributable to shareholders of US$24.4 million, a decrease of 21.0 per cent from US$30.9m in the third quarter of 2018. Earnings per share was US cents 0.74 compared to US cents 0.87 in the third quarter of 2018.

Consolidated net profit was US$21.8 m compared with US$31.3 m in the third quarter of 2018, a decrease of 30.1pc. Profit from continuing operations was US$21.8 m compared to US$29.6 m in the third quarter of 2018, a decrease of 26.2pc. Total income increased by 27.1 pc to US$90.5 m versus US$71.2 m in the third quarter of 2018.

Total expenses including provisions for impairment increased 65.1pc to US$68.7 m while operating expenses decreased 24.6pc to US$21.4 m from the prior-year quarter.

Nine-month results

Net profit attributable to shareholders for the period was US$73.6 m compared with US$103.4 m in the prior-year period, a decrease of 28.8pc. Excluding one-off recovery income and restructuring income of US $ 57.8 m, net profit attributable shareholders grew by 61.4pc. Earnings per share was US cents 2.19 compared to US cents 2.91 in the year-ago period. Consolidated net profit decreased 33pc to US$70.2 m from the year-ago period hurt by lower contribution from the Group’s commercial banking arm due to higher impairment provisions taken during the nine months of 2019.

Profit from continuing operations was US$70.7 m compared to US$100.0 m in the prior-year period, a decrease of 29.3pc. The Group reported a 23.7pc increase in income, which reached US$254.0 m compared with US$205.3 m in the first nine months of 2018. Excluding the one-off recovery income and restructuring income in 2018, the total income of the Group grew by 72.2pc. Contributing to solid income growth was the continued positive performance of the Group’s core investment banking business, real estate activities and income generation from the treasury and proprietary investments.

Investment banking contributed 31.1pc to the total income of the Group mainly from placement activities and contributions from Treasury activities continued to grow to reach 24.1pc of total income. The improved performance was also reported in real estate, which accounted for 7.9pc while proprietary investments and commercial banking contributed 16.3pc and 20.6pc, respectively to total income for the first nine months of the year.

Total expenses including provision for impairment were at US$183.3 m compared to US$105.3 m in the prior-year period, an increase of 74.1pc, primarily due to an increase in the impairment provisions in the commercial banking business of 198.9pc and an increase in the finance costs as part of treasury portfolio of the Group. Operating expenses were US$70.2 m compared with US$71.0 m in the first nine months of 2018, a decrease of 1.1pc.