Bahrain - Esterad has reported net profit attributable to shareholders of BD3,810,244 for the fourth quarter of 2024, compared to BD3,576,993 for the same quarter in 2023, reflecting a robust seven per cent increase. 

The strong performance was driven by enhanced profits from the company’s investment activities, as well as higher returns from its real estate and equity portfolios.

Notably, the quarter’s results benefited from the successful exit from a major real estate portfolio, which Esterad acquired and successfully transformed into a high-value investment under its management.

Additionally, the company’s financial performance was positively impacted by income generated from Esterad Bank, including returns related to a legacy exit and the closing of a $73 million multifamily housing investment in the United States.

Earnings per share for the fourth quarter increased to 24.76 fils, compared to 23.25 fils in Q4 2023. Total comprehensive income attributable to shareholders for the quarter stood at BD3,687,402, compared to BD3,688,549 for the same period last year, a slight decreased by 0.03pc. Total income for the fourth quarter surged to BD5,321,046 marking a significant increase of 7pc from BD4,909,247 in Q4-2023.

For the full year 2024, Esterad reported net profit attributable to shareholders of BD6,133,826 reflecting a strong 11pc year-on-year increase compared to BD5,524,450 in 2023.

Earnings per share for the year was 39.90 fils, compared to 37.70 fils in the previous year. Total comprehensive income attributable to shareholders reached BD5,379,133, an increase of 15pc from BD4,697,669 in 2023. Total income for the year grew 60pc to BD12,752,971 a substantial increase from BD7,977,110 recorded the previous year.

Total assets were BD93,100,840 as of end-2024, compared with BD119,858,511 as of end-2023, a decrease of 22pc which was primarily a result of sale of a real estate portfolio.

Total liabilities decreased by 42pc to BD42,017,033 from BD71,996,492 in 2023, primarily as result of early repayment of a bank financing facility of BD30,160,000 resulting in significant deleveraging, derisking and strengthening of the company’s financial position.

Total equity attributable to owners of the company increased by 8pc to BD43,377,483 from BD40,198,706 in 2023 corresponding to an increase in the company’s book value by 3pc to BD 0.282 (fils) per share from BD 0.275 (fils) per share in 2023.

Commenting on the results, Esterad chairman Hisham Alrayes said: “We are pleased to report another year of strong financial results, with net profit increasing by 11pc and total income rising by 60pc in 2024. These results reflect the continued strength of our investment strategy, disciplined execution, and ability to capitalise on market opportunities in order to deliver solid returns and another sound dividend for our shareholders for the year.”

He added: “As we build on this momentum across the portfolio in 2025, Esterad remains well-positioned to deliver sustainable growth and long-term value for our shareholders.”

Mr Alrayes further said: “As a result of the company’s success, stability and strength of earnings, the board of directors recommended the distribution of cash dividends of 15pc of the capital, equivalent to 15 fils per equity share, and bonus shares of 5pc, equivalent to 5 shares for every 100 shares owned for the fiscal year 2024 for the shareholders registered with the company on the record date. However, this recommendation is subject to the approvals of the regulatory authorities and shareholders at the annual general meeting.”

Adding, Esterad chief executive Ahmed Abdulrahman said: “Esterad’s strong financial results for 2024 reflect the solid progress we have made across all areas of our business. Through a sustained focus on effective management and value creation, we have delivered strengthened performance across our portfolios, generating strong returns and unlocking value.”

He added: “At Esterad Bank, we made positive steps throughout 2024 in our restructuring activities, which saw the bank deliver profits in the fourth quarter. This was an important milestone supported by a number of key transactions during the quarter. Additionally, during 2024 we significantly strengthened the bank’s financial position, recapitalising and deleveraging its balance sheet and returning the Bank to positive equity, marking a major milestone in its strategic transformation. As we move into 2025, Esterad Bank has a robust pipeline of opportunities, with several transactions expected to start closing within the first half of the year and onwards.”

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