GFH Financial Group, an investment bank based in Bahrain, more than doubled its net profit for the second quarter of 2021, driven by growth across its business units despite the ongoing impact of the Covid-19 pandemic globally.
Net profit attributable to the shareholders of the bank in the three months to June 30 jumped 109.8 per cent to $20.92 million, up from $9.97m for the second quarter of 2020, GFH said on Thursday. Total income for the quarter rose 17.6 per cent year-on-year to $90.62m.
"Supporting the strong increase in income were contributions from our commercial banking business, our investment banking as well as income related to financing and debt portfolios held by the group," said Hisham Alrayes, chief executive of GFH.
Total expenses for the second quarter rose 3.7 per cent to $65.82m, up from $63.46m in the comparative period of 2020.
GFH's profit for the quarter rose with higher income generated from the group's investment banking and placement activities, its financing portfolio and treasury income as well as higher contributions from its increased stake acquired during the quarter in Khaleeji Commercial Bank, the group’s commercial banking subsidiary.
In June 2021, GFH said it plans to fully acquire Khaleeji after it raised its stake in the Sharia-compliant lender to more than 69 per cent.
Net profit attributable to shareholders for the first half of 2021 more than doubled to $37.04m, up 146 per cent from $15.05m a year earlier, GFH said.
First-half profit was boosted by increased treasury activities and stronger performance by the commercial banking subsidiary of the group.
Total income for the first half of 2021 rose 23.5 per cent to $181m from the same period in 2020, as the group's core business units registered growth.
GFH's total assets stood at $7.06 billion as of June 30 this year, 7.1 per cent higher than that recorded at the end of 2020, it said.
“Our results for the second quarter and first half of the year reflect the continued success of our strategy and focus on growth, diversification and expansion across core business lines and geographies for the group," Mr Alrayes said.
"We also greatly benefited from the sale of equity investments and treasury income realised from sukuks, notes and fixed income, a fast-growing part of our business and a steady contributor to the vastly improved income and profitability delivered for the period."
In June 2020, GFH completed the issuance of its $500m sukuk programme after selling the remaining amount of $200m. That deal came after a $300m Islamic bond the company sold in January 2020. The five-year sukuk was two-and-a-half times oversubscribed, with the order book exceeding $750m.
Mr Alrayes said the company intends to maximise "the strong pipeline of opportunities we have in place".
GFH offers investment management services to its clients and has interests in commercial banking, real estate development and treasury and proprietary investments.
UAE currency: the story behind the money in your pockets
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
UAE currency: the story behind the money in your pockets
THE LOWDOWN
Romeo Akbar Walter
Rating: 2/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Robby Grewal
Cast: John Abraham, Mouni Roy, Jackie Shroff and Sikandar Kher
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
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Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket
GOLF’S RAHMBO
- 5 wins in 22 months as pro
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- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
Roll%20of%20Honour%2C%20men%E2%80%99s%20domestic%20rugby%20season
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Al Jazira's foreign quartet for 2017/18
Romarinho, Brazil
Lassana Diarra, France
Sardor Rashidov, Uzbekistan
Mbark Boussoufa, Morocco
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
