Bahrain’s GFH Group posts Q1 profit decline on lower business

Bahrain-based GFH Financial Group reported a net profit of $20.7 million in the first quarter of 2019 as compared to $36.89 million in the first quarter of 2018, a decrease of 43.8 percent.

“The decrease in net profits is attributed primarily to lower contribution from the Group’s commercial banking arm and extended closure of investment funds, which are expected to realize during the second quarter,” the Shariah-compliant investment bank said in a statement.

However, the Group reported a 6.47 percent increase in revenues, which reached $70.12 million in Q1 2019 against $65.86 million in Q1 2018.

The increase was supported by a significant contribution from the proprietary investments revenue stream of the Group with an exit of 40 percent stake in its Bahrain-based Al Areen Hotel, against acquisition of the Hotel Tower in Villamar development, which contributed $29.40 million.

The Group’s investment banking business also contributed $7.4 million, while the real estate arm reported an $8 million contribution from its Harbour Row projects.

The Group treasury contributed $11.3 million in Q1 following GFH’s new strategy towards developing treasury recurring income.

“We continue to focus on and invest in diversifying our business and investment portfolio to deliver steady revenue generation through varied business lines,” Jassim Al Seddiqi, chairman of GFH, commented on the results.

The Group has plans to build on its portfolio in the education sector, as it launched the Britus $200 million education platform in Q1 2019 and have been able to sign to acquire six new K-12 private schools in the region.