GFH profit jumps fivefold to $62m in first half

Dubai: GFH Financial Group reported on Sunday $62.1 million (Dh227.9 million) in net profit attributable to shareholders for the first half of 2017, marking a 440 per cent jump from the $11.5 million recorded in the same period of 2016.

In the second quarter alone, the company reported $30.2 million in profits attributable to shareholders, up more than fivefold from the $5.5 million in profits in the same quarter last year.

Hisham Alrayes, GFH’s chief executive officer, attributed the gains in profits to the business having exited its real estate and education portfolio, resulting in “substantial contribution” to revenue streams.

Investment banking

In the first half of the year, total revenues went up 36 per cent year-on-year to reach $113.4 million on the back of revenues from the investment banking business.

“We have also been able to achieve some recoveries from our debt portfolio, which has contributed to our overall income as well. Regarding our plan for strategic acquisitions and following shareholders’ approval earlier this year, we have been able to achieve major acquisitions for the benefit of our infrastructure portfolio and increased the capital of the bank with a premium to our shareholders,” the CEO said.

He added that he expected to end the year with “a record achievement” and to maintain dividend distribution.