In This Article:
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Shareholders' Profits: Increased by 11% year-on-year to USD30 million.
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Annualized ROE: 12.6%, up by 1.3% year-on-year.
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Net Profit Attributable to Shareholders: USD30 million, 11% year-on-year growth.
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Consolidated Net Profit: USD31 million.
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Total Income: Increased by 5% to USD171 million.
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Total Expenses: USD89 million, in line with the previous year.
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Earnings Per Share: Grew by almost 10% to USD0.85 per share.
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Assets and Funds Under Management: USD22.6 billion, a 4% increase from last year.
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Liquid Assets: 47% of total assets, with cash and treasury portfolio at USD5.5 billion.
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Total Equity Attributable to Shareholders: Decreased to USD937 million from USD981 million.
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Capital Adequacy Ratio: 16.27%.
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Liquidity Coverage Ratio: 210%.
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Net Stable Funding Ratio: 133%.
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Investment Banking Income Contribution: 39% of total income.
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Commercial Banking Income Contribution: 25% of total income.
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Khaleeji Bank Net Profit: USD8.58 million, a 7.8% increase from 2024.
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Treasury and Proprietary Investments Income Contribution: 37% of total income.
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GFH Stock Price: Closed at AED1.10 as of 13th March.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GFH Financial Group BSC (DFM:GFH) reported an 11% year-on-year increase in shareholders' profits, reaching USD30 million for Q1 2025.
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The company achieved an annualized return on equity (ROE) of 12.6%, up by 1.3% year-on-year.
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The group's assets and funds under management grew by 4% to USD22.6 billion, indicating strong asset growth.
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Investment banking, a core business line, contributed 39% to the total income, supported by successful investments in defensive sectors and high-growth markets.
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The GFH Investment App, powered by AI, was well-received, enhancing customer experience and digital offerings, leading to increased customer onboarding in Q1 2025.
Negative Points
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Total equity attributable to shareholders decreased from USD981 million at the end of 2024 to USD937 million by the end of Q1 2025, primarily due to dividend distributions.
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Despite the overall positive performance, the consolidated net profit only saw a modest increase of 1.2% to USD31 million.
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The stock price experienced volatility due to global market conditions, particularly after the US announced a global tariff policy.
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The treasury and proprietary investments, while contributing significantly to income, are subject to market volatility and dislocations.
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The liquidity coverage ratio and net stable funding ratio, although above regulatory requirements, indicate a cautious approach to liquidity management amidst market uncertainties.