MANAMA: Bahrain-based GFH Financial Group has announced strong performance and results for the financial year ended December 2017.
For the year, GFH reported net profit of $104.2 million as against $217.12m for the previous year and a consolidated net profit of $103.2m as against $233.05m for the prior-year.
These results, in real terms, reflect year-on-year growth in all areas of the business when excluding $464m in one-off income from the settlement of litigation by the group in the fourth quarter of 2016.
Net profit for the fourth quarter of 2017 was $16.9m versus $213.18m in 2016, whereas consolidated net profit for the fourth quarter last year was $12.1m versus $223.34m earlier.
For the full year 2017, the group’s total consolidated revenue was $211.65m as against $115m in 2016, excluding one-off recovery gains achieved in 2016 of $464m.
This reflects an increase in revenue of 84pc year-on-year.
Supporting revenue growth was higher investment banking income from exits and placements.
In line with its strategy, the group also achieved successful exits for its clients amounting to $1.2 billion during the year from infrastructure investments and US multi-family assets based in Houston and Atlanta.
During the year, GFH also created a strategic partnership with Inspired, a leading international schools operator, which acquired 50 per cent of GFH’s education portfolio.
Total operating expenses for the year were $99.18m down from $124.8m in the prior year.
Total assets increased from $3.30bn in 2016 to $4.11bn for 2017.
The group ended the year with a capital adequacy ratio of 17.36pc and Return on Equity (RoE) ratio of 9.1pc. Further steps were also taken in 2017 to optimise overall financing liabilities, improve liquidity and enhance the balance sheet.
The success of these efforts resulted in GFH receiving an upgraded credit rating of B with a positive outlook from international credit rating agency Fitch based on its strengthened capital position and the reduction of associated legacy uncertainties.
GFH chairman Shaikh Ahmed bin Khalifa Al Khalifa said, “We are delighted with the solid performance and profitability reported during 2017 and further recognition by the market of the sound financial position and progress at GFH.
“The continued operational revenue growth across our business lines underscores the strength of our strategy and success in diversification.”
“In line with these results and the group’s progressive dividend policy, we are happy to announce the board’s recommendation for the distribution of a 8.7pc cash dividend ($85m) to shareholders,” Shaikh Ahmed said.
“The continued strong shareholder returns underscore our commitment to delivering value on which we will remain focused throughout 2018.”
GFH chief executive Hisham Alrayes said, “We are pleased with the strong progress made and the significant growth achieved in our investment banking and real estate activities during 2017.
“Notably in 2017, we focused on undertaking key exits for our clients in our infrastructure portfolio and US funds.
“We also saw further investments in our US real estate and regional education portfolio and have completed the successful listing of our commercial banking subsidiary, KHCB, on the Dubai Financial Market.
“Under our real estate subsidiary, we have been able to substantially advance our landmark Villamar and Harbour Row projects in Bahrain, which support the government’s efforts to promote the kingdom as a tourism and hospitality destination.”
“Building on our strong momentum and financial position, GFH looks towards achieving another successful year, where we will target strategic acquisitions that add new lines of business and markets,” Mr Alrayes said.
We will also look to achieve further profitable exits from some of our direct investments and look forward to delivering even stronger results and profitability in the year ahead.”
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