GFH Bank BSC (ADX:GFH)
د.إ 2.12 -0.010 (-0.47%) Market Cap: 7.33 Bil Enterprise Value: 12.62 Bil PE Ratio: 0.56 PB Ratio: 2.20 GF Score: 56/100

Q1 2025 GFH Financial Group BSC Earnings Call Transcript

May 14, 2025 / 10:00AM GMT
Release Date Price: د.إ1.11 (+1.83%)

Key Points

Positve
  • GFH Financial Group BSC (DFM:GFH) reported an 11% year-on-year increase in shareholders' profits, reaching USD30 million for Q1 2025.
  • The company achieved an annualized return on equity (ROE) of 12.6%, up by 1.3% year-on-year.
  • The group's assets and funds under management grew by 4% to USD22.6 billion, indicating strong asset growth.
  • Investment banking, a core business line, contributed 39% to the total income, supported by successful investments in defensive sectors and high-growth markets.
  • The GFH Investment App, powered by AI, was well-received, enhancing customer experience and digital offerings, leading to increased customer onboarding in Q1 2025.
Negative
  • Total equity attributable to shareholders decreased from USD981 million at the end of 2024 to USD937 million by the end of Q1 2025, primarily due to dividend distributions.
  • Despite the overall positive performance, the consolidated net profit only saw a modest increase of 1.2% to USD31 million.
  • The stock price experienced volatility due to global market conditions, particularly after the US announced a global tariff policy.
  • The treasury and proprietary investments, while contributing significantly to income, are subject to market volatility and dislocations.
  • The liquidity coverage ratio and net stable funding ratio, although above regulatory requirements, indicate a cautious approach to liquidity management amidst market uncertainties.
Bhaskar Mehta
GFH Financial Group BSC - Chief Risk Officer and Acting CFO

Salam Malaikum, very good afternoon and a warm welcome to the GFH Financial Group's first-quarter of 2025 results presentation. My name is Bhaskar Mehta; I'm currently the acting Chief Financial Officer for GFH Group. I'll be presenting you with the highlights of our financial performance during this period.

Quarter 1 2025 has been an excellent start to the year, continuing the momentum on our financial performance from 2024. Our dedication, focus and robust business strategies sustained our financial performance for quarter 1 2025. We reported increased shareholders' profits and enhanced income with strong balance sheet.

Our quarter 1 2025 shareholders' profits have increased by 11% year-on-year growth to reach USD30 million. This translates to an annualized ROE of 12.6%, which is up by 1.3% year-on-year. Underpinning this, our emphasis on a strong balance sheet is maintained. All capital and liquidity metrics are at robust levels, supporting our sustained growth trajectory.

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