GFH: Net profit rises 14.8% to $116.2 million

The Bank Maintains Stable Liquidity Position with Cash Balances and Treasury Portfolio of $5.1 Billion

GFH Bank announced yesterday its financial results for the third quarter and the first nine months of the year ended September 30, 2026. Net profit attributable to shareholders reached $40.09 million in the third quarter of 2026, compared to $34.03 million in the same quarter of 2025, representing a 17.81% increase. This growth was driven by strong performance in wealth and investment management income, as well as credit and financing income, which rose 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 streams.

In a press statement, the Bank reported that earnings per share for the third quarter stood at 1.16 US cents, up from 0.94 US cents in the corresponding quarter of 2025, an increase of 23.40%. Total comprehensive income attributable to shareholders amounted to $34.05 million, down from $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%. Adjusted net profit also rose by 15.32% to $40.63 million, compared to $35.23 million in the third quarter of 2025. Meanwhile, total expenses, including tax expenses, decreased by 11.97% to $90.00 million, down from $102.24 million.

The statement added that the Bank recorded a net profit attributable to shareholders of $116.29 million for the first nine months of the current year, compared to $101.27 million during the same period in 2025, an increase of 14.83%. Earnings per share rose by 18.73% to 3.36 US cents, compared to 2.83 US cents in the corresponding period of 2025. Total comprehensive income attributable to shareholders was $101.66 million, down from $115.25 million in the same period last year, a decrease of 11.80%.

Total income increased by 5.07% to $440.44 million, compared to $419.20 million in the first nine months of 2025. Adjusted net profit for the period reached $117.20 million, up from $104.95 million in the corresponding period of 2025, an increase of 11.67%. Total expenses, including tax expenses, amounted to $323.24 million, compared to $314.25 million in 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, an increase of 2.52%. Total assets reached $12.23 billion, compared to $12.20 billion at the end of 2025, an increase of 0.25%.

The Bank maintained a stable liquidity and funding position, 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 operations 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 client relationships, expand access to banking and investment services, and enhance its digital capabilities.

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

Commenting on the results, GFH Board Chairman Abdulmohsen Rashid Al-Rasheed said, “The positive results achieved by GFH Bank during the first nine months of 2026 reflect the strength of its financial position and the soundness of its strategic direction. Despite the challenges and developments witnessed in regional and global markets, GFH has continued to demonstrate its ability to maintain strong performance, supported by the diversification of its business activities, prudent management, and commitment to delivering sustainable value to shareholders.”

He added, “We are particularly proud of the progress we have made since our transformation into GFH Bank, which represents a significant step toward strengthening 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. We look forward to the next phase with confidence and optimism, building on the achievements attained and the promising opportunities offered by our key markets. We will continue to build on this progress, strengthen our partnerships, and seek to capitalize on investment opportunities that contribute to the bank’s sustainable growth and serve the interests of our shareholders, while enhancing our role in supporting the economic development of the Kingdom of Bahrain.”

For his part, GFH CEO and Board Member Hisham Al-Rais said, “We are pleased with the financial results we 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 key business segments continued to make strong contributions, with Wealth and Investment Management generating revenue of $54.29 million in the third quarter, while Credit and Financing contributed $43.54 million, and Treasury and Private Investments activities generated revenue of $32.79 million. We have also made further progress in strengthening our investment portfolio and expanding our banking capabilities following the transformation.”

Looking ahead, we are optimistic about the opportunities available in our key markets and will continue to build on these achievements, strengthen our relationships with clients and partners, and seek to capitalize on distinctive investment opportunities that support sustainable growth and deliver long-term value to our shareholders.

Key Business Unit Achievements

GFH continued to deliver positive contributions across its key business segments during the third quarter and the first nine months of 2026.

Wealth and Investment Management:

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

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

The $400 million acquisition deal by GFH for a 60% stake in Bayern Equipment Leasing was ranked among the top five deals in the region by PricewaterhouseCoopers (PwC).

GFH Partners reached an agreement on the terms to sell a portfolio of logistics and industrial assets in the United States, valued at approximately $130 million, owned through its seventh and eighth industrial and logistics investment funds.

The bank continued to pursue 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 reached $43.54 million during the third quarter of 2026, compared to $39.99 million during the third quarter of 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 during the corresponding period in 2025.

Net financing contracts amounted to $2.75 billion as of September 30, 2026, compared to $2.53 billion as of December 31, 2025, an increase of 8.65%.

The bank maintained discipline in underwriting arrangements and prudent risk management, while continuing to selectively pursue financing opportunities aligned with its risk and return objectives.

Treasury and Private Investments:

Income reached $32.79 million during the third quarter of 2026, and $150.92 million during the first nine months of the year.

The bank maintained its prudent approach to managing portfolio positions, liquidity, and capital preservation amid changes in regional and international 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 private investment activities, focusing on risk management, capital efficiency, and identifying investment opportunities within its diversified portfolio.

Key Environmental, Social, and Governance (ESG) Practices:

GFH continued to implement its environmental, social, and governance strategy through initiatives focused on empowering youth, education, community care, sports, employee development, and digital innovation, including the following:

Environmental Sustainability: The bank supported the Kingdom of Bahrain’s efforts to achieve national afforestation and sustainability goals.

Youth Development: The bank continued its participation in the “Youth City 2030” initiative.

Education and Community Care: The bank collaborated with the Kaf Humanitarian Foundation to provide educational scholarships and monthly stipends for families, supporting eligible Bahraini families.

Sports and Community Engagement: The bank signed an official partnership agreement with Al-Nassr Saudi Club for the 2026–2027 sports season. It also supported the 20th Asian Games “Aichi-Nagoya 2026” in Japan.