Dubai: The GFH Financial Group reported a consolidated net profit of $9.7 million for the first nine months, down from the $17.98 million (Dh65.9 million) last year.
The net loss for the third quarter was $8.26 million against a profit of $4.32 million same period last year.
Consolidated income for the three quarters was $99.3 million, up from the $67.1 million last year. Net profit attributable to shareholders came to $3.9 million, down from $4.08 million a year ago.
But the latest third quarter weighed heavily, with a total net loss attributable to shareholders of $7.58 million.
“The results have been impacted by the provisions taken by the commercial banking subsidiary, which reflected negatively on the Group’s results,” said a statement.
The results have also been impacted by the expenses in relation to recoveries awarded recently, it added.
However, some of the recoveries announced previously have not been included in the third quarter financial results as they are currently subject ti review. Based on their clearance any recovery will be reflected in subsequent financials.
The results have also been impacted by the provision taken the commercial banking subsidiary which reflected negatively on the results.
GFH in October said that the negotiations are underway for acquisition of Bank Alkhair of Bahrain. The due diligence is continuing and formalities are yet to be completed. GFH had signed an agreement in August to acquire Bank Alkhair. In early October, GFH said its board has approved the proposed settlement with assets of an estimated $350-450 million, subject to counterparties’ fulfilment of their obligations.
GFH shares fell more than 4 per cent, extending its fall for another session. GFH has been one of the top performing regional stocks with more than 200 per cent gains so far in the year.
