Wednesday 14, February 2018 by Jessica Combes

GFH reports net profit of $104 million attributed to shareholders for 2017


GFH Financial Group (‘GFH’ or ‘the Group’) announced strong performance and results for the financial year ended 31 December 2017, reporting net profit attributable to shareholders of $104.2 million compared with $217.12 million for the previous year and a consolidated net profit of $103.2 million for the year as compared with $233.05 million for the prior-year.

These results, in real terms, reflect year-on-year growth in all areas of the business when excluding $464 million in one-off income from the settlement of litigation by the Group in the fourth quarter of 2016.

Net profit attributable to shareholders for the fourth quarter of 2017 was $16.9 million versus $213.18 million in the fourth quarter of 2016. Consolidated net profit for the fourth quarter was $12.1 million versus $223.34 million in the fourth quarter of 2016.

For the full year 2017, the Group’s total consolidated revenue was $211.65 million as compared to $ 115 million in 2016, excluding one-off recovery gains achieved in 2016 of $ 464 million. This reflects a healthy increase in revenue of 84 per cent year-on-year. Supporting revenue growth was higher investment banking income from exits and placements. In line with GFH’s strategy, the Group also achieved successful exits for its clients amounting to $1.2 billion during the year from infrastructure investments and US multi-family assets based in Houston and Atlanta. During the year, GFH has also created a strategic partnership with Inspired Education Group, a leading international education operator, which acquired 50 per cent of GFH’s education portfolio. 

Total operating expenses for the year were $99.18 million down from $124.8 million in the prior year. Total assets increased from $3.30 billion in 2016 to $4.11 billion for 2017. The Group ended the year with a capital adequacy ratio of 17.36 per cent and Return on Equity (ROE) ratio of 9.1 per cent. Further steps were also taken in 2017 to optimise overall financing liabilities, improve liquidity and enhance the balance sheet. The success of these efforts resulted in GFH receiving an upgraded credit rating of “B” with a positive outlook from Fitch, the international credit rating agency, based on its strengthened capital position and the reduction of associated legacy uncertainties.

“We are delighted with the solid performance and profitably reported during 2017 and further recognition by the market of the sound financial position and progress at GFH. The continued operational revenue growth across our business lines underscores the strength of our strategy and success in diversification,” said HE Sheikh Ahmed bin Khalifa Al-Khalifa, Chairman of GFH. 

Ahmed added that in line with these results and the Group’s progressive dividend policy, we are happy to announce the Board’s recommendation for the distribution of a 8.7 per cent cash dividend ($85 million) to shareholders, subject to approval at the General Assembly and by our regulators. The Group’s continued strong shareholder returns underscores our commitment to delivering value on which we will remained focused throughout 2018. “I would like to take this opportunity to extend our gratitude to our investors and shareholders for their ongoing confidence in GFH and to our management and staff for their dedication in the past year.”


Features & Analyses