GFH total income for 2024 hits $676m; net profit up 22pc

Trade Arabia

13-02-2025

Bahrain-based GFH, a regional financial group with key interests in asset management and real estate, has achieved solid results for FY 2024 with its total income surging to hit $675.82 million, up 39.86% when compared to the previous year's figures of $483.22 million demonstrating strong growth across all business lines.
Announcing its financial results for the 12-month period ended December 31, 2024, GFH Group said the consolidated net profit for the year rose to $128.51 million from $105.23 million the year before, recording an increase of 22.12%.
The total expenses for the year witnessed an increase rising to $344.99 million from $264.30 million in 2023, reflecting a 30.53% increase.
Total equity attributable to shareholders stood at $980.94 million as of December 31, 2024, compared with $989.54 million at year-end 2023, a decrease of 0.87%. Total assets of the Group were $11.03 billion compared with $11.12 billion at 31 December 2023, down 0.81%.
On its Q4 results, GFH Group said its net profit attributable to shareholders was $30.56 million versus $23.94 million the previous year, up 27.63%. This was attributed to higher contribution from the investment banking and proprietary investment business lines.
Earnings per share for the quarter were US cents 0.84 compared with US cents 0.69 in the fourth quarter of 2023.
According to GFH, the total income was $189.34 million for the fourth quarter of the year, reflecting a 32.57% increase from $142.82 million in the fourth quarter of 2023, supported by investment banking activities, proprietary income, and treasury operations.
Consolidated net profit for the fourth quarter was $32.96 million compared with $24.18 million the year before, thus posting a growth of 36.31%, despite fair value movements in the Group's treasury and investment portfolio.
Total expenses for the quarter surged to $111.10 million from $84.06 million in the prior-year period, reflecting a 32.17% increase, largely due to business operation expansion.
GFH Group said in line with its results, the Board of Directors has recommended a total cash dividend of $55 million, equivalent to 5.5% on par value ($0.0146 per share excluding treasury shares), subject to approval by the General Assembly and regulators.
Currently, GFH manages close to $22 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.
On the solid performance, Chairman Abdulmohsen Rashed Al Rashed said: "GFH has once again continued to deliver sustainable value for its shareholders with sound financial results for the fourth quarter and full year 2024. Net profit attributable to shareholders grew by more than 15% for the year, reflecting our disciplined execution, diversification, and the strength of our core businesses."
" As a result, we are pleased to announce another solid dividend for our shareholders reflecting the Group's ongoing commitment and ability to deliver shareholder value," he noted.
"We are also proud to have successfully priced our S500 million five-year sukuk during Q4 with demand from international investors. The solid double-digit growth in income and profitability highlights our ability to navigate market dynamics while seizing new opportunities," stated Al Rashed.
"Moving forward, we will continue to focus on building long-term resilience and delivering strong returns for our shareholders as we expand our global footprint and reinforce our position as a regional financial leader," he added.
CEO Hisham Alrayes said: "We are pleased to report another year of positive performance, with total income surging by 40% to $675.82 million, reflecting the success of our strategic initiatives and the expansion of our investment and treasury activities."
"Our net profit attributable to shareholders also rose by 15.2% to $118.50 million, driven by the performance of our investment banking, treasury and proprietary investment activities, and commercial banking businesses," remarked Al Rayes.
According to him, investment banking remained a key driver of profitability, supported by asset management growth and new deal-related income reinforcing its leadership in the sector.
"Our treasury and proprietary investments also delivered robust contributions, benefiting from well-executed capital deployment strategies and income from structured placements. Additionally, our commercial banking business continued its upward trajectory, supporting growth through disciplined restructuring and enhanced efficiency," he stated.
On GFH's future outlook, Al Rayes said: "As we look ahead, we will continue to build on this momentum by capitalising on new investment opportunities, growing our global asset base, and further capitalising on opportunities for growth in our core regional markets with an emphasis on Saudi Arabia and the UAE."
"This is in addition to strengthening our existing access to the US as a mature market, allowing us to continue to offer compelling asset management and investment products. Our focus remains on delivering sustainable returns, enhancing our financial strength, and driving value creation for all stakeholders," he noted.