GFH Financial Group, listed on the Dubai Financial Market (DFM), on Monday, reported a slight increase in net profit for the third quarter of 2023, with figures showing a 1.04% rise to $24.31 million compared to the same period last year. This growth was underpinned by robust global and regional investment activities and strong contributions from all business lines.
Despite the uptick in net profits, earnings per share experienced a minor decrease, dipping to $0.71 from $0.73 year-over-year. The company's total income for the quarter saw a significant boost, climbing 32.82% to reach $87.53 million.
The financial results for the first nine months of 2023 were also positive, with net earnings attributable to shareholders jumping by 19.14% to $78.92 million, driven by solid contributions across business lines. Earnings per share during this period increased from $1.91 to $2.26, and total income surged by nearly 39% to $261.29 million.
Chairman Ghazi Al Hajeri and CEO Hisham Alrayes highlighted the firm's successful closure of three new transactions during the quarter as a key factor in their performance. They also noted the strategic realignment of funding strategies which helped mitigate the impact of rising interest rates and funding costs that have affected the commercial banking business, treasury, and proprietary investment activities.
However, GFH faced challenges as well, with consolidated net profit for the quarter declining by 8.58% to $23.86 million compared to $26.1 million in Q3 2022. The firm also observed a substantial increase in total expenses, which soared by 60% to $63.68 million.
Al Hajeri emphasized that despite the high-interest rate environment and rising funding costs impacting certain business lines, GFH has made steady progress by effectively adapting its funding strategies to navigate these challenges successfully.
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