Media ININ Economy We Trust
Media IN Manama, May 16 (BNA):
GFH Group reported a 6.47% increase in revenues, which reached $70.12 million compared to $65.86 million in the first quarter of 2018. This shows GFH’s continued success in implementing its strategy, which remains highly focused on diversifying and enhancing revenue streams and income generation across its core business activities.
Net profit attributable to shareholders for the first quarter of 2019 was $21.36 million compared with $36.48 million in the prior-year period, a decrease of 41.44%.
The Group reported consolidated net profit of $20.7 million, compared with $36.89 million in the first quarter of 2018. The decrease in net profits is attributed primarily due to lower contribution from the Group’s commercial banking arm and extended closure of investment funds, which are expected to realise during the second quarter.
Supporting the results for the first quarter of 2019 was the significant contribution from the proprietary investments revenue stream of the Group with a successful exit of 40% stake in its Bahrain-based Al Areen Hotel, against acquisition of the Hotel Tower in Villamar development, which contributed $29.40 million.
The Group’s Investment Banking business also contributed $7.4 million. The Group’s real estate business reported a $8 million contribution from its Harbour Row projects. The Group Treasury contributed $11.3 million this quarter following GFH’s new strategy toward developing treasury recurring income.
Profit from continuing operations for the period was $21.17 million compared with $35.73 million in the first quarter of 2018, a decrease of 40.75%. Operating expenses for the period were$21.43 million compared with $21.29 million in the first quarter of 2018, increase of 0.6%.
Finance costs for the Bank increased to $ 23.71 million for the first quarter of 2019 from $ 7.17 million in the comparative period of 2018, primarily due to the additional money market funds raised by the Bank as part of its new Treasury strategy. Cash received during the quarter attributes to $ 40.72 million representing 58.07% of the revenues recorded during the quarter.
Total assets of the Group increased from $ 4.99 billion at year end of 2018 to $ 5.91 billion as at 31 March 2019, an increase of 18.44%, liabilities of the Group also increased to $4.50 billion at 31 March 2019 from $ 3.57 billion at year end of 2018, primarily due to additional money market activities.
Total equity attributable to shareholders at 31 March 2019 was at $1.05 billion compared to year end 2018 of $ 1.06 billion, after factoring for the profits for the quarter and the appropriation for the cash dividends approved by the shareholders in the last Annual General Meeting. Earnings per share for the first quarter of 2019 was US cents 0.64 compared to US cents 1.02 in the comparative prior-year period.
Chairman of GFH, said, “GFH continues to focus on and invest in diversifying business and investment portfolio to deliver steady revenue generation through varied business lines. Notwithstanding the sizeable investments that have made into further developing of the business in the first quarter of 2019 .
