GFH posts 33% jump in quarterly profit on strong business performance

GFH Financial Group, an investment bank based in Bahrain, reported an annual 33 per cent increase in second-quarter profit as income from investment banking, and treasury and proprietary investments income rose.

Net profit attributable to the company's shareholders for the three months to the end of June climbed to nearly $31 million, GFH said in a filing on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.

Income from investment banking during more than doubled to $45.4 million in the reporting period, while treasury and investment income increased 38 per cent to nearly $26 million.

“The group’s results and resilience are supported by a sharp thematic focus and concentration in attractive and defensive sectors and markets, where we will continue to build our presence,” GFH chairman Ghazi Al Hajeri said.

“Building on our positive momentum, we will continue to make strides across the business with the aim of further diversifying our operations, growing our revenue and building our portfolio of income-generating assets in key markets and across our core focus areas.”

Listed on Bahrain Bourse, Dubai Financial Market, ADX and Boursa Kuwait, GFH has assets worth more than $18 billion, with operations focused across the GCC, North Africa and India, along with investments in the US, Europe and the UK.

“During the quarter, we were successful in placing more than $328.4 million of investments relating to our regional healthcare platform, Healian, and other funds we have launched, which build on our experience in the healthcare and logistics sectors as well as in the US markets,” said Hisham Alrayes, chief executive and board member of GFH.

“Despite market volatility, our treasury activities also performed well during the quarter and contributed to our results, as did our commercial banking subsidiary Khaleeji Bank."

GFH is focusing at present on accelerating the expansion of the group’s Middle East and Africa and GCC-based regional investment platforms.

“This includes those in high-growth, defensive sectors such as healthcare and life sciences, education and logistics – which will allow us to capitalise on long-term structural growth tailwinds in the region and our strong track record and expertise gained through decades of investing in global markets,” Mr Alrayes said.

For the first half of 2023, the GFH's profit jumped about 30 per cent annually to nearly $55 million as income from investment banking, commercial banking, and treasury and proprietary investments income rose during the period.

GFH continued to expand its portfolio globally with new investments as part of its growth strategy.

Earlier this year, it acquired a majority stake in Big Sky Asset Management, a US-based real estate asset manager focused on the defensive healthcare segment.

GFH Financial Group's sustainable infrastructure platform, Infracorp, has also co-invested in Aurora Infrastructure, a monopoly electricity distribution network that operates in Finland.

Infracorp made the initial co-investment along with infrastructure asset manager Equitix, the Bahraini investment bank said in January.

Last year, it bought a portfolio of medical clinics in the US in a deal valued at $400 million, expanding its real estate portfolio in the world's largest economy.