Manama, GFH Financial Group announced its financial results for the fourth quarter of 2019.
Net profit attributable to shareholders was $6.5 million for the fourth quarter compared with $10.6 million in the last quarter of 2018 a decrease of 38.7%.
This was attributed to higher provisions from the Group's commercial banking subsidiary. Earnings per share for the fourth quarter was US cents 0.19 compared to US cents 0.30 for the last quarter of 2018. Income for the fourth quarter was $81.66 million up slightly from $80.87 million during the fourth quarter of 2018.
Net profit attributable to shareholders for the full year was $80.1 million compared with $114.1 million for the prior year, a decrease of 29.8% resulting primarily from higher provisions in the commercial banking subsidiary of the Group. Earnings per share for the year was US cents 2.37 compared with US cents 3.22 in the corresponding prior year.
Total equity attributable to shareholders was $1.0 billion at 31 December 2019 from $1.06 billion at 31 December 2018, a decrease of 5.7% due to additional acquisition of an infrastructure project and treasury share buyback programs. Total assets of the Group were $5.9 billion at 31 December 2019 compared with $5.0 billion at the previous year end, an increase of 18.2%. Total Assets plus fund under management increased from $ 8.5 billion in 2018 to $ 10.0 billion in 2019.
Fund raised reached $2 billion in equity and money market, a 100% increase from 2018.
Concluded six transactions for a total deal value of $557 million across the UK, US and GCC markets.
Revenue for the year was $335.69 million versus $286.17 million for 2018 an increase of 17.3%. This 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.
In line with results, the Board of directors has recommended the distribution of cash dividend of 5.57% ($50 million) for 2019 to shareholders, subject to approval by the General Assembly and regulators.
For the year, the Group was pleased to report continued growth and progress and a subsequent double-digit increase in income for 2019, Jassim Alseddiqi, Chairman of GFH, said.
While results were impacted by higher provisions in our commercial banking operations, we were pleased to announce another dividend as well as good overall performance and profits reflecting the continued successful implementation of our strategy, further diversification of our business lines and sound financial position. During the fourth quarter, we approached the debt capital markets in a landmark transaction for the Group.
The overwhelmingly positive response that we received is no better testament to where GFH stands today and market recognition and confidence in the Group and where we are heading. We went on to announce in January 2020, the successful pricing of a $300 million 5-year sukuk, which was 'B' rated by S and P and Fitch, and oversubscribed 2.5 times exceeding $750 million. Importantly, this included strong demand from international investors who were allocated 47% of the issuance further diversifying our sources of funding and building GFH's brand with global investors.
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.
Source: Bahrain News Agency