GFH Financial Group, a Bahrain-based investment bank, reported a 38.7 per cent drop in its fourth-quarter net profit, dragged down by a rise in impairments charges.
Net profit attributable to the shareholders of the bank in three months to the end of December slumped to $6.5 million (Dh23.8m), the bank said in a statement on Wednesday. Higher provisions for credit losses from the group’s commercial banking subsidiary impacted the quarterly earnings, it said without providing the provision figures.
The bank’s full-year 2019 profit also declined 29.8 per cent to $80.1m. GFH’s revenue last year, however, climbed to $335.7m, up from $286.2m reported at the end of 2018, it said.
The rise in revenue reflects “continued growth and progress in the group’s core investment banking business, increased contributions from real estate activities and strong performance in the group’s growing treasury business,” the bank said.
Total assets of GFH rose to $5.9 billion for the reporting period, up from $5bn recorded a year earlier. Its total assets along with the funds under management increased to $10bn at the end of last year from $8.5bn the previous year.
Earnings per share for 2019 dropped to 2.37 cents compared with 3.22 cent from a year earlier. Total equity attributable to shareholders slid to $1bn from 1.06bn for the same period due to additional acquisition of an infrastructure project and treasury share buyback programs, the bank said.
“We have achieved good growth and results from across our core business lines, which characterised the group’s performance in 2019,” Hisham Alrayes, chief executive of GFH, said. “We had to restructure our commercial banking operations for stronger contributions in the future hence we have been impacted by provisions.”
Investment banking income for the year has more than doubled on the back of the group’s success in “identifying and placing unique income generating investments”, he said without giving the income figure.
GFH earlier in February said it acquired a hospitality portfolio in the US in partnership with investment firm Arbor Lodging Partner. The deal worth $250m was executed through GFH Capital - a fully-owned subsidiary of the group.
GFH has increased its investment in the US over the last year. In July, the company acquired a portfolio of office buildings for Dh367m in the US that pushed the value of its investments in the country and in the UK real estate sector to more than $1bn.
The company in the fourth quarter also approached the debt capital market and priced its $300m five-year sukuk in January. The deal, its first debt capital market transaction since 2008, was oversubscribed 2.5 times, with the order book exceeding $750m.
“These proceeds will be used to fund our next phase of development in 2020 and beyond. With solid foundations and the strides we have made over the past year, the group’s focus now continues on growth, diversification and value creation for our investors and shareholders,” said Jassim Alseddiqi, chairman of GFH.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
MATCH INFO
Uefa Champions League, semi-final result:
Liverpool 4-0 Barcelona
Liverpool win 4-3 on aggregate
Champions Legaue final: June 1, Madrid
UAE currency: the story behind the money in your pockets
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Brief scores:
Manchester City 3
Aguero 1', 44', 61'
Arsenal 1
Koscielny 11'
Man of the match: Sergio Aguero (Manchester City)
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- 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)
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
Day 1, Abu Dhabi Test: At a glance
Moment of the day Dimuth Karunaratne had batted with plenty of pluck, and no little skill, in getting to within seven runs of a first-day century. Then, while he ran what he thought was a comfortable single to mid-on, his batting partner Dinesh Chandimal opted to stay at home. The opener was run out by the length of the pitch.
Stat of the day - 1 One six was hit on Day 1. The boundary was only breached 18 times in total over the course of the 90 overs. When it did arrive, the lone six was a thing of beauty, as Niroshan Dickwella effortlessly clipped Mohammed Amir over the square-leg boundary.
The verdict Three wickets down at lunch, on a featherbed wicket having won the toss, and Sri Lanka’s fragile confidence must have been waning. Then Karunaratne and Chandimal's alliance of precisely 100 gave them a foothold in the match. Dickwella’s free-spirited strokeplay meant the Sri Lankans were handily placed at 227 for four at the close.
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
UAE currency: the story behind the money in your pockets
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