Bahrain-Based GFH Reports Net Profit of 2020

GFH Financial Group BSC (GFH) (Bahrain Bourse: GFH) announced its financial results for the fourth quarter and twelve months ended December 31, 2020. The Group reported net profit attributable to shareholders of US$21.93 million for the fourth quarter of 2020 compared with US$1.5 million in the fourth quarter of 2019, an increase of 1,362%. Previous year fourth quarter results included a significant impairment provision in the commercial banking subsidiary of the Group. Earnings per share for fourth quarter of 2020 was 0.65 cents compared to 0.04 cents for the comparative quarter of 2019.

Consolidated net profit for the fourth quarter was US$19.04 million compared with losses of US$8.1 million in the fourth quarter of 2019. Net profit attributable to shareholders was US$45.1 million for the full year compared with US$66.03 million in 2019, a decrease of 31.7%. The decline is predominantly attributable to slower contribution from business lines as a result of the pandemic situation during the year. Earnings per share for the year was 1.35 cents compared to 1.96 cents for the full year 2019. Consolidated net profit for the year was US$49.34 million compared US$53.12 million in 2019.

Total equity attributable to shareholders was US$0.913 billion from US$1.00 billion at year-end 2019, a decrease of 8.7%. The drop was primarily due to the 2019 dividends payout, mark to market changes on treasury portfolio, and additional capital contribution to the Group’s commercial banking subsidiary. Total assets of the Group were US$6.59 billion at year-end 2020 compared with US$5.95 billion at December 31, 2019, an increase of 10.8%.

The Group’s Total Assets and Fund Under Management (AUM) increased from US$10 billion in 2019 to over US$12 billion in 2020, marking a year-on-year increase 20%, primarily from the growth in the treasury portfolio of the Group along with inorganic growth through acquisition. In line with results, the Board of Directors has recommended total dividend of US$42m at 4.60% on par value, divided into 1.86% cash dividends amounting to US$17 million and 2.74% stock dividends of US$25 million for the shareholders, subject to approval by the General Assembly and regulators.
Commenting on the results, Jassim Alseddiqi, Chairman of GFH, said, “2020, despite its exceptional challenges and the unprecedented global turmoil caused by the Covid-19 pandemic, has helped GFH to test and confirm the strength and resilience of the Group, our strategy and business model.

We remain pleased with our overall performance and ongoing diversification, which has enabled the Group not simply to weather this storm but to continue to make strides across the business and deliver another solid dividend for our shareholders even in the toughest of years.”Hisham Alrayes, CEO of GFH, added, “As we look back on what was no doubt the most challenging year faced by governments, businesses and citizens around the world, we’re very proud of how we’ve performed. We worked quickly to secure the safety of our colleagues, their families and our community, activated our continuity plans and provided support to investments as and where required.