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Bahrain-based GFH Financial Group’s net profit for the third quarter 2023 rose slightly to $24.3 million amid rising funding costs.
The net profit attributable to shareholders for the quarter was up 1% from $24.06 million a year earlier, reflecting a “steady progress”, the company said in a statement on the Dubai Financial Market (DFM) on Monday.
Earnings per share stood at $0.71 during the same period, compared to $0.73 a year ago, while total income went up by 33% to $87.53 million.
The company acknowledged that interest rates had put pressure on its business during the third quarter, particularly on its commercial banking business, as well as treasury and proprietary investment activities.
For the first nine months of the year, net earnings attributable to shareholders increased by 19% to $78.92 million, in line with solid contributions from all business lines, the company said.
Earnings per share was $2.26, up from $1.91 last year, while total income rose by 38.96% to $261.29 million.
Ghazi Al Hajeri, Chairman of GFH Financial Group, said the positive results were supported by the income generated from global and regional investment activities.
“Contributions were also realised from the Group’s commercial banking business and treasury and proprietary investment activities, although performance in these areas was impacted during the quarter by rising interest rates.”
Al Hajeri noted that despite the high interest rate environment, the affected business lines were able to realign their funding strategies to mitigate the rising funding cost impact.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
