GFH Bank reports $76.2 million net profit in the first half, up 13.33%

GFH Bank announced its financial results for the second quarter and the first half of the year ended June 30, 2026. Net profit attributable to shareholders reached $41.09 million during the second quarter, compared to $37.10 million in the same period of 2025, representing a 10.77% increase, driven by strong growth in wealth and investment management income and credit and financing income, which rose by 32.52% and 22.99%, respectively. Earnings per share stood at 1.19 cents for the second quarter, up from 1.06 cents in the second quarter of 2025, an increase of 12.26%. Total comprehensive income attributable to shareholders amounted to $70.52 million, compared to $51.71 million in the second quarter of 2025, a rise of 36.38%. Total income reached $158.82 million in the second quarter, up from $146.04 million in the same period of 2025, an increase of 8.75%. Consolidated net profit was $42.23 million, compared to $39.02 million in the corresponding period last year, up by 8.22%. Total expenses for the quarter totaled $116.59 million, compared to $107.02 million, an increase of 8.95%.

For the first half of the year, the bank recorded a net profit attributable to shareholders of $76.20 million, compared to $67.24 million in the same period of 2025, an increase of 13.33%. Earnings per share reached 2.21 cents, up from 1.93 cents in the first half of 2025, a growth of 14.51%. Total comprehensive income attributable to shareholders was $67.61 million for the first half of the year, down 14.32% from $78.91 million in the same period of 2025. Total income for the period stood at $309.81 million, up 4.40% year-on-year from $296.75 million. Consolidated net profit for the first half of the year reached $76.57 million, compared to $69.72 million in the corresponding period of 2025, an increase of 9.83%. Total expenses amounted to $233.24 million, compared to $227.04 million in the same period of 2025, up by 2.73%.

Total shareholders’ equity stood at $1.01 billion as of June 30, 2026, down 1.31% from $1.02 billion as of December 31, 2025. Total bank assets reached $12.44 billion, up 1.97% from $12.20 billion as of December 31, 2025.

GFH Bank currently manages assets and investment funds valued at approximately $24 billion, including a global investment portfolio spanning the Gulf Cooperation Council countries, the United States, and Europe, covering sectors such as logistics, healthcare, education, technology, infrastructure, and real estate.

Commenting on the results, Abdulmohsen Rashid Al-Rashed, Chairman of the Board at GFH Bank, said: “The results achieved during the first half of 2026 reflect the resilience of GFH’s diversified business model and the progress the bank is making in strengthening its position as an integrated banking and investment institution.”

The bank continued to strike a balance between growth in its core business segments and discipline in capital allocation and prudent risk management, alongside developing strategic partnerships in key regional and international markets. He added, “Looking ahead, the Board of Directors remains focused on supporting sustainable growth and delivering long-term value to shareholders. Taking into account developments in regional and global market conditions, we will continue to pursue selective opportunities, enhance recurring income streams, and invest in the capabilities needed to elevate the competitiveness of GFH and solidify its financial position.”

Strong Contributions

For his part, Hisham Al-Rais, CEO and Board Member of GFH, stated: “GFH Bank reported a net profit attributable to shareholders of $76.20 million during the first half of 2026, with total income reaching $309.81 million. This performance was underpinned by strong contributions from Wealth and Investment Management, Credit and Financing income, alongside disciplined management of Treasury and Private Investments activities.”

Regional geopolitical conditions and the resulting market uncertainty have generally impacted the financial services and investment sectors, affecting investor confidence, market activity, and the timing of transaction execution.

In light of these conditions, GFH’s diversified and geographically dispersed income sources, along with its prudent approach to capital, liquidity, and risk management, have supported the bank’s resilience during the period.

Looking ahead to the second half of the year, we intend to maintain our focus on growing fee-generating assets, pursue measured expansion in our financing portfolio, and improve capital deployment through Treasury and Investment activities. We will also continue to closely monitor market conditions while seeking opportunities capable of generating recurring income and delivering sustainable, risk-adjusted returns.

Key Business Unit Achievements

GFH delivered positive performance across its core business segments during the second quarter and the first half of 2026, supported by strong momentum in Wealth and Investment Management, Credit and Financing, as well as disciplined management of Treasury and Private Investments.

Wealth and Investment Management generated income of $50.32 million in the second quarter and $132.83 million in the first half of the year. A memorandum of understanding was signed with OCTO Management to develop a $300 million logistics and industrial real estate platform in the Kingdom of Saudi Arabia and the United Arab Emirates. The bank expanded its industrial and logistics platform in the Kingdom of Saudi Arabia through a strategic partnership with Mawatin Real Estate, focusing on high-quality assets in key markets within the Kingdom.

The bank participated as a lead investor in the dual initial public offerings of Pershing Square Inc. and Pershing Square USA on the New York Stock Exchange, and GFH Partners entered into an agreement to sell its majority stake in Student Quarters to The Scion Group, the world’s largest owner and operator of off-campus student housing.

Credit and financing income amounted to $29.94 million in the second quarter and $69.91 million in the first half of 2026, driven by higher financing income and underwriting activity. Net financing commitments stood at $2.64 billion as of June 30, 2026. The bank maintained discipline in underwriting and prudent risk management, deploying capital judiciously in financing opportunities aligned with its risk and return objectives.

Treasury and private investments income reached $78.56 million in the second quarter and $107.07 million in the first half of 2026, supported by contributions from fixed income activities, asset and liability management, and trading. The bank upheld its prudent approach to liquidity, risk, and capital management, while selectively pursuing opportunities across its regional and international portfolios. Private investments performance was bolstered by gains from the divestment of selected portfolio assets during the period, and a long-term strategic investment was executed in SpaceX Exploration Technologies Corp. (NASDAQ: SPCX), known as SpaceX, through a structured deal.

Regarding key Environmental, Social, and Governance (ESG) practices, the bank continued to implement its ESG strategy during the second quarter of 2026 through initiatives focused on health and well-being, employee development, education, entrepreneurship, and community care. The bank promoted healthy and active lifestyles through the GFH XLR8 Night Run 2026, organized in partnership with the Bahrain Banks Association and attracting approximately 1,000 participants. It also continued to enhance employee learning and engagement through its internal “Minds at Work” program, which included knowledge-sharing sessions on customer experience, adaptability, and other professional and organizational topics.

Youth entrepreneurship was supported through the bank’s role as a distinguished partner in the “Startup Bahrain – University of Bahrain” program, which helped qualify 91 student projects during its pilot phase. The bank also partnered with Al Wefaq National School to support the development of its new campus and to launch the “GFH Al Wefaq National School,” contributing to the provision of a modern and inclusive educational environment. Support was provided through the GFH Foundation, a community initiative in collaboration with the Royal Committee for Bahrain’s Humanitarian Affairs and the Shaim Al-Khair team, to furnish more than 20 homes for widows, orphans, and needy families across various regions of the Kingdom of Bahrain.

Disclaimer: This press release may contain forward-looking statements, which are based on current expectations and estimates regarding the business environment and may involve known and unknown risks that could cause actual results, performance, or events to differ materially. Factors include, among other things, market conditions, interest rates, regulatory developments, execution risks, and other matters detailed in the bank’s published financial statements. Forward-looking statements reflect the bank’s views only as of the date of this press release, and the bank assumes no obligation to update them except as required by applicable laws.