GFH: $116.29 Million Net Profit in 9 Months

GFH Bank announced its financial results for the third quarter and the first nine months of the year ending on September 30, 2026. The bank recorded a net profit attributable to shareholders of $116.29 million during the first nine months of 2026, compared to $101.27 million during the same period in 2025, representing an increase of 14.83%. Earnings per share rose by 18.73% to reach 3.36 US cents, compared to 2.83 US cents during the corresponding period in 2025. Total comprehensive income attributable to shareholders amounted to $101.66 million, down from $115.25 million during the same period last year, a decrease of 11.80%.

Commenting on these positive results, Chairman Abdulmohsen Rashid Al-Rashed stated that the positive outcomes reflect the bank’s strong financial position and the soundness of its strategic direction. Despite the challenges and developments witnessed in regional and global markets, GFH Bank has continued to demonstrate its ability to maintain robust performance, supported by the diversification of its business activities, prudent management, and commitment to delivering sustainable value to shareholders. He particularly highlighted the progress achieved following the transition to GFH Bank, which represents a significant step toward enhancing our institutional capabilities and expanding our banking and investment activities, in line with our long-term vision to consolidate our position as one of the leading financial institutions in the Kingdom of Bahrain and the region. Looking ahead, we are confident and optimistic, relying on the achievements made and the promising opportunities offered by our key markets. We will continue to build on this progress, strengthen our partnerships, and strive to seize investment opportunities that contribute to the bank’s sustainable growth and serve the interests of its shareholders, while also enhancing our role in supporting the economic development of the Kingdom of Bahrain.

For his part, Managing Director and Board Member Hisham Al-Rais said: “We are pleased with the financial results we have achieved during the first nine months of 2026, as net profit attributable to shareholders increased by 14.83% to reach $116.29 million. This performance reflects the strength of our diversified business model and the continuous efforts of our teams to deliver positive results, despite the challenges facing regional and global markets.”

He added: “Our main business segments continued to make strong contributions. Wealth and Investment Management generated income of $54.29 million during the third quarter, while Credit and Financing contributed $43.54 million, and Treasury and Private Investments activities generated income of $32.79 million. We have also made further progress in strengthening our investment portfolio and expanding our banking capabilities following the transformation process. Looking to the future, we are optimistic about the opportunities available in our key markets. We will continue to build on these achievements, strengthen our relationships with clients and partners, and strive to seize distinctive investment opportunities that support sustainable growth and deliver long-term value to our shareholders.”

Regarding consolidated net profit, total income rose by 5.07% to reach $440.44 million, compared to $419.20 million during the first nine months of 2025. Consolidated net profit for the period amounted to $117.20 million, compared to $104.95 million during the corresponding period in 2025, an increase of 11.67%. Total expenses, including tax expenses, reached $323.24 million, compared to $314.25 million during the same period last year, an increase of 2.86%.

Total shareholders’ equity stood at $1.05 billion as of September 30, 2026, compared to $1.02 billion as of December 31, 2025, representing a 2.52% increase. Total assets reached $12.23 billion, compared to $12.20 billion at the end of 2025, a 0.25% increase.

Shareholders’ return: Net profit attributable to shareholders amounted to $40.09 million during the third quarter of 2026, compared to $34.03 million in the corresponding quarter of 2025, an increase of 17.81%. This rise was supported by strong growth in wealth and investment management income and credit and financing income, which increased by 82.10% and 8.89%, respectively, reflecting the resilience of the bank’s diversified business model and its continued focus on enhancing recurring revenue sources.

Earnings per share reached 1.16 cents during the third quarter, compared to 0.94 US cents in the same quarter of 2025, a 23.40% increase. Total comprehensive income attributable to shareholders was $34.05 million, compared to $36.34 million in the third quarter of 2025, a decrease of 6.30%. Total income for the quarter was $130.63 million, compared to $137.47 million in the same period last year, a decline of 4.98%.

Consolidated net profit rose by 15.32% to $40.63 million, compared to $35.23 million in the third quarter of 2025. Total expenses, including tax expenses, decreased by 11.97% to $90.00 million, compared to $102.24 million.

The bank maintained a stable position in terms of liquidity and funding, with total cash balances and the treasury portfolio reaching $5.11 billion as of September 30, 2026. The net stable funding ratio stood at 144.1% as of September 30, 2026, while the average liquidity coverage ratio was 127% during the third quarter, reflecting the bank’s continued focus on prudent liquidity and balance sheet management.

In parallel, GFH continued to develop its business as an integrated banking and investment institution following its transformation into GFH Bank. As part of this transformation, 390 accounts were activated, supporting the bank’s efforts to strengthen customer relationships, expand access to banking and investment services, and enhance its digital capabilities.

GFH Bank currently manages assets and investment funds valued at $24.11 billion, including a global investment portfolio spanning the Gulf Cooperation Council countries, the United States, and Europe, covering sectors such as logistics, industry, healthcare, education, technology, infrastructure, and real estate.

Key Business Unit Achievements

GFH continued to deliver positive contributions across its main business sectors during the third quarter and the first nine months of 2026, supported by growth in wealth and investment management, credit and financing, alongside disciplined treasury and private investment activities.

Wealth and Investment Management:

- Generated income of $54.29 million during the third quarter of 2026, compared to $29.81 million in the third quarter of 2025, an increase of 82.10%.

- Income rose by 47.54% during the first nine months to $176.07 million, compared to $119.34 million in the corresponding period of 2025.

- GFH’s $400 million acquisition of a 60% stake in Bayern Equipment Leasing was ranked among the top five deals in the region by PwC, reflecting the bank’s focus on identifying strategic investment opportunities in the Gulf Cooperation Council (GCC) countries.

- GFH Partners reached an agreement on the terms of selling a portfolio of logistics and industrial assets in the United States, valued at approximately $130 million, held through its seventh and eighth Industrial and Logistics Investment Funds.

- Continued pursuit of investment opportunities in sectors supported by long-term structural demand, including industrial and logistics assets, infrastructure, energy, technology, and real estate.

Credit and Financing Income:

- Achieved income of $43.54 million in Q3 2026, compared to $39.99 million in Q3 2025, an increase of 8.89%.

- Income rose by 16.77% during the first nine months to reach $113.45 million, compared to $97.16 million in the same period of 2025.

- Net financing contracts stood at $2.75 billion as of September 30, 2026, up from $2.53 billion as of December 31, 2025, an increase of 8.65%.

- The bank maintained discipline in syndication arrangements and prudent risk management, while selectively pursuing financing opportunities aligned with its risk and return objectives.

Key Governance Practices

GFH continued implementing its Environmental, Social, and Governance (ESG) strategy through initiatives focused on youth empowerment, education, community care, sports, employee development, and digital innovation. The bank also expanded its sustainability efforts through initiatives announced after the end of Q3, including:

- Environmental Sustainability: The bank supported the Kingdom of Bahrain’s afforestation and national sustainability goals by participating in National Tree Week in October 2026, contributing to expanding green spaces and enhancing environmental responsibility.

- Youth Development: The bank continued its participation in the “Youth City 2030” initiative, which provides Bahraini youth with opportunities to gain practical experience and develop professional skills. GFH interns also participated in activities highlighting the role of youth in driving future innovation and economic development.

- Education and Community Care: The bank partnered with the KAF Humanitarian Foundation to provide educational scholarships and monthly stipends to families, supporting eligible Bahraini families and contributing to long-term sustainable educational and social opportunities.

- Sports and Community Engagement: The bank signed an official partnership agreement with Al-Nassr FC for the 2026–2027 sports season. It also supported the 20th Asian Games “Aichi-Nagoya 2026” in Japan, reaffirming its commitment to promoting sporting excellence and international engagement.

Treasury and Private Investments Income

- Achieved income of $32.79 million in Q3 2026 and $150.92 million during the first nine months of the year.

- The bank maintained a prudent approach to managing portfolio positions, liquidity, and capital preservation amid changes in regional and global markets.

- Cash balances and the treasury portfolio totaled $5.11 billion as of September 30, 2026, supporting the bank’s comprehensive balance sheet and liquidity management strategy.

- The bank continued to enhance the management of its treasury and investment activities, focusing on risk management, capital efficiency, and identifying investment opportunities within its diversified portfolio.