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Wed 12 Aug 2015 03:54 PM

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Bahrain's GFH says H1 net profit slips to $13.6m

Total income falls to $55.6m while operating expenses rises to nearly $40m in first six months of 2015

Bahrain's GFH says H1 net profit slips to $13.6m
Hisham Al Rayes - CEO of GFH.

Bahrain's GFH Financial Group (GFH) on Wednesday said it made a net profit of $13.6 million in the first six months of 2015, down on the $14.8 million it made in the year earlier period.

The company said in a statement that net profit for the second quarter of 2015 was $7.6 million versus $12.4 million reported in Q2 last year.

It added that last year’s results included a one-off income of $33 million as a result of a recovery.

Contributing to results for Q2 was income generated from the placement of a new investment in Dubai, coupled with improved performance from the group’s subsidiary, Khaleeji Commercial Bank.

Total income for the first half of 2015 was $55.6 million compared with $60.5 million for the same period of 2014. Operating expenses for the period were $39.6 million, up from $35.3 million last year. 

Hisham Alrayes, CEO of GFH Financial Group, said: "We are pleased to announce another period of sound results and profitability across the Group. In the first half of the year, we continued to successfully execute our strategy investing in new cash yielding opportunities in defensive sectors that have sound growth potential.

"Key among these was a new investment in a British curriculum private school in Dubai in June, which has contributed to our second quarter results. This followed our May 2014 acquisition of a 1,300 pupil, American curriculum K-12 private school also located in the UAE.”

He added: “During the first six months of the year, we also realized the benefits from other investments made in the last eighteen months. This includes dividends paid to our investors on the diversified US residential portfolio and Philadelphia Private School in Dubai. We have also distributed partial exits from our India project. 

"We shall continue to grow our income yielding investment portfolio, maximise returns from our existing assets and progress our development projects.”

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