Bahrain-based GFH Financial Group’s net income rose slightly to $24.3 million in the third quarter of 2023 amid higher funding costs.
Net profit attributable to shareholders for the quarter rose 1% from $24.06 million in the year-ago period, reflecting “steady progress”, the company said in a statement on the Dubai Financial Market (DFM) on Monday.
Earnings per share for the same period were $0.71 (compared to $0.73 in the same period last year), and total profit was $87.53 million, an increase of 33%.
The company acknowledged that interest rates put pressure on its business in the third quarter, particularly its commercial banking business and treasury and principal investment activities.
The company said that for the first nine months of this year, net income attributable to shareholders increased 19% to $78.92 million, consistent with solid contributions from all business units.
Earnings per share were $2.26, up from $1.91 in the same period last year, and total profit increased 38.96% to $261.29 million.
Ghazi Al Hajeri, Chairman of GFH Financial Group, said the strong performance was supported by income generated from global and regional investment activities.
“Performance in these areas during the quarter was affected by rising interest rates, but also saw contributions from the group’s commercial banking, treasury and principal investment activities.”
Al Hajeri noted that despite the high interest rate environment, the affected business units were able to readjust their financing strategies to reduce the impact of higher financing costs.
(Written by Cleofe Maceda; Edited by Brinda Darasha)
Brinda.darasha@lseg.com