GFH REPORTS AN INCREASE OF 11.05% IN NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS FOR THE FIRST QUARTER OF 2025 TOTALING US$30.14 MILLION
GFH Financial Group B.S.C (GFH) (Bahrain Bourse: GFH) today announced its financial results for the first quarter ('the quarter') of the period ended 31 March 2025. Net profit attributable to shareholders was US$30.14 million for the first quarter of 2025 compared to US$27.14 million in the same period last year, an increase of 11.05%. The increase is mainly attributed to contributions from the Group's investment banking, commercial banking and sale of proprietary investments. Earnings per share for the quarter was US cents 0.85 compared with US cents 0.77 in the first quarter of 2024. Total income attributable to shareholders was US$170.94 million for the first quarter of the year compared with US$162.97 million in the first quarter of 2024, an increase of 4.89%. Consolidated net profit for the first quarter attributable to shareholders was US$30.69 million compared with US$30.34 million in the first quarter of 2024, an increase of 1.15%. Total expenses for the quarter were US$89.44 million compared with US$89.18 million in the prior-year period, an increase of 0.30% Total equity attributable to shareholders was US$936.59 million at 31 March 2025 compared with US$980.93 million at 31 December 2024, a decrease of 4.52%, primarily due to dividend declaration for 2024. Total assets of the Group were US$11.59 billion at 31 March 2025 compared with US$11.03 billion at 31 December 2024, an increase of 5.06%. Currently, GFH manages over US$22.48 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.
Mr. Abdulmohsen Rashed Al Rashed
Chairman, GFH Financial Group
'We are pleased to report another quarter of positive performance for GFH Financial Group, underscoring the resilience and adaptability of our business model amid dynamic market conditions. Our achievements this quarter are a testament to the dedication of our team, the strength of our diversified portfolio, and our ability to capitalise on new opportunities across key sectors and markets. We remain committed to executing our strategic vision, focusing on sustainable growth and prudent management to deliver value for our shareholders. As we continue our journey through 2025, we are optimistic about our capacity to build on this momentum, further broaden our global reach, and contribute meaningfully to the economic progress of the regions in which we operate.'
Hisham Alrayes
CEO and Board Member, GFH Financial Group
'We are delighted to deliver another quarter of robust growth for GFH Financial Group, reflecting the strength and resilience of our diversified operating model. Our performance this quarter has been driven by strong deal execution within our investment banking platform, alongside a healthy contribution from our well-positioned treasury portfolio, resulting in an increase of 11.05% in net profit. The Group's ability to consistently generate income from strategic sales of proprietary investments and to benefit from a growing share of profits across our subsidiaries, including Khaleeji Bank, GFH Partners and GFH Capital SA, demonstrates the effectiveness of our integrated approach.
We have maintained a disciplined risk management framework, ensuring that provisions and expected credit losses remain well within targeted levels, which speaks to the quality of our underlying assets and the prudent strategies we employ in both origination and portfolio management. Our focus on optimising capital allocation and liquidity across business lines has enabled us to capture profitable opportunities in the market, while enhancing the resilience of our balance sheet. This is further supported by our continued efforts to diversify income streams, both geographically and across sectors, which has proven instrumental in safeguarding shareholder value during periods of volatility.
Looking ahead, we remain fully committed to driving operational excellence and digital transformation across the Group, leveraging technology to enhance efficiency and support scalable growth. We have made tangible efforts in this area by launching the latest version of the GFH Investment App, powered by AI, which was very well received during the first three months of the year and continues to attract more clients and investors. This is part of our commitment to enhancing digital transformation, keeping pace with global tech advancements in the sector and redefining the concept of accessing investment opportunities. Meanwhile, we strive to continue achieving sustained value creation for our shareholders by relying on the foundation laid this quarter, and underpinned by promising contributions from our subsidiaries and strong income generation from key business areas.'
Business Unit Highlights –
The Group continued to deliver sound performance and contributions from across its core business lines during the first quarter of 2025.
Investment Management: • During the first quarter, the Group's investment banking activities generated US$47.0 million in income through various deals across the region and beyond. • GFH Partners invested up to US$200 million in a diversified US portfolio of strategically located industrial and transportation logistics assets, offering both core and value-add opportunities across sectors such as e-commerce, automotive and manufacturing.
• GFH Partners upsized its US Student Housing Portfolio IV, an investment into student housing near universities, to US$120 million, reflecting strong investor demand.
Commercial Banking:
• The Group's commercial banking business, Khaleeji Bank, contributed US$41.54 million in income during the first quarter.
Treasury & Proprietary Investments: • Contributions from the Group's treasury and proprietary investment activities is US$62.62 million.
• Income from proprietary investments amounted to US$22.93 million, which was the result of exit proceeds from MENA real estate.
ESG and Digital Transformation Highlights • The Group launched the new version of the GFH Investment App, powered by AI technology, which has contributed to accelerating the onboarding of clients and facilitating access to a wider range of investment opportunities in the Gulf region.
• In Q1 of 2025, GFH Financial Group continued to demonstrate a strong commitment to Environmental, Social, and Governance (ESG) principles through a series of impactful initiatives. One of the key highlights was GFH's role in promoting social inclusion by partnering with Bahrain Road Runners for the 'Ocean of Hope: Blue Colour Run', a community event dedicated to autism awareness. This initiative emphasised GFH's commitment to creating inclusive communities and supporting mental health awareness.
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