Bahrain / Emirates Business
GFH Financial Group (GFH) on Saturday announced its full year financial results for 2015 with a consolidated profit of US$ 29 million before provisions of US$17 million, and a net profit of US$ 12.0 million, signaling sustained profitability for the Group.
The consolidated net profit for 2015 was US$ 12 million compared to net profit of US$ 27.3 million for 2014. For 2015, the net loss attributable to GFH shareholders was US$ 5.5 million, as compared to a profit of US $15 million in 2014. The loss per equity share was 0.25 cents in year 2015, as compared to a profit of 1.02 cents in 2014.
Total consolidated income for 2015 was US$85 million, as compared to US$90 million in 2014. Operating profit before provisions was US$29 million, as compared to US$41.5 million in 2014. Total provisions in 2015 stood at US$ 17 million as against US$14.1 million in 2014. Operating expenses were US$62.1 million in 2015, in comparison to US$59 million in 2014. Commercial banking income attributed to US$57.8 million and investment banking income attributed to US$20.1 million, while real estate has contributed US$5.6 million. Investment banking income of 34 percent increase is due to successful placements of new products by GFH over the past year. The Group reported a loss of US$ 5.95 million for the last quarter of 2015 compared to a profit of US$ 4.2 million for the last quarter of 2014.
Commenting on the year’s results, Dr. Ahmed Al Mutawa, Chairman of GFH, said: “Over the last few years, GFH has made strategic initiatives to overhaul its business and position as a leading financial services group in the region. These efforts have led the Group towards continuous growth, and we are pleased to announce that our results today have been contributed from Commercial Banking and pure investment operations.
Dr. Al Mutawa said: “The second half of 2015 was difficult and a down turn in the market that has prepared us to make some provisions which we hope to recover in the short term. GFH continues to be on track and achieve stable levels of profitability. The regional business climate requires a great degree of adaptability and foresight to consistently deliver good returns.”