GFH Financial BSC : محضر مؤتمر المحللين

CMP/May/2024/0019

نﻼﻋإ

Announcement

	Date			15/05/2024			ﺦﯾرﺎﺗﻟا
	Company Name			.ب.م.ش ﺔﯾﻟﺎﻣﻟا شﺗإ فإ ﻲﺟ ﺔﻋوﻣﺟﻣ			ﺔﻛرﺷﻟا مﺳإ
			GFH Financial Group B.S.C.
	Trading Code					GFH			لوادﺗﻟا زﻣر
					نﻣ لوﻷا ﻊﺑرﻠﻟ ﺔﯾﻟﺎﻣﻟا تﺎﻧﺎﯾﺑﻠﻟ ﺔﯾﻟﺎﻣﻟا شﺗإ فإ ﻲﺟ ﺔﻋوﻣﺟﻣﻟ ﻲﻧورﺗﻛﻟﻹا ثﺑﻟا ﺞﺋﺎﺗﻧ
	Subject					2024 مﺎﻋ			عوﺿوﻣﻟا
				Results of GFH Financial Group's Webcast for the first Quarter of
					2024 Financial Results
					2024 وﯾﺎﻣ 14 ﺦﯾرﺎﺗﺑ ﺔﯾﻟﺎﻣﻟا شﺗإ فإ ﻲﺟ ﺔﻋوﻣﺟﻣ نﻣ ردﺎﺻﻟا حﺎﺻﻓﻹا ﻰﻟا ةرﺎﺷﻹﺎﺑ
					رﺳﯾ ،ﺔﻋوﻣﺟﻣﻠﻟ ﻲﻧورﺗﻛﻟﻹا ثﺑﻟا روﺿﺣﻟ نﯾرﻣﺛﺗﺳﻣﻟاو نﯾﻣھﺎﺳﻣﻟا	ةوﻋدﺑ ﻖﻠﻌﺗﻣﻟا
					موﯾ تﻧرﺗﻧﻻا رﺑﻋ ﺎﮭﺛﺑ مﺗ ﻲﺗﻟا ةودﻧﻟا حﺎﺟﻧ نﻋ قاوﺳﻷاو نﯾﻣھﺎﺳﻣﻟا ﻎﻠﺑﺗ نأ ﺔﻋوﻣﺟﻣﻟا
					ً	ﺔﻋﺎﺳﻟا مﺎﻣﺗ ﻲﻓ 2024 وﺑﺎﻣ 15	ﻖﻓاوﻣﻟا ءﺎﻌﺑرﻷا
					.نﯾرﺣﺑﻟا ﺔﻛﻠﻣﻣ تﯾﻗوﺗﺑ ارﮭظ 1:00
					.ةودﻧﻟا رﺿﺣﻣ صﻧ ﻰﻟا ﺔﻓﺎﺿﻹﺎﺑ ﻲﻣﯾدﻘﺗﻟا ضرﻌﻟا مﻛﻟ ﻖﻓرﻣ
	Information				Further to GFH's market notification dated 14th May 2024 on the		ﺔﻣوﻠﻌﻣﻟا
					subject, GFH is pleased to inform its shareholders and the markets
					about the successful live webcast session, which was broadcasted
					online on Wednesday, 15th May 2024, at 1:00 p.m. Kingdom of
					Bahrain time.
					Attached herein is the presentation discussed during the session
					and the script of the live webcast.
	Name				Mariam Jowhary			يﺮھﻮﺟ ﻢﯾﺮﻣ		ﻢﺳﻹا
	Title				Head of Compliance & AML		لاﻮﻣﻻا ﻞﯿﺴﻏ ﺔﺤﻓﺎﻜﻣو ماﺰﺘﻟﻹا ﺲﯿﺋر		ﻲﻔﯿظﻮﻟا ﻰﻤﺴﻤﻟا
		Company Seal ﺔﻛﺮﺸﻟا ﻢﺘﺧ			Signature ﻊﯿﻗﻮﺘﻟا

Q1 2024 RESULTS PRESENTATION

1 5 M a y 2 0 2 4

Contents

1. GFH Chairman and CEO's Commentary
2. Q1 2024 Key Achievements
3. Strategy Summary
4. Q1 2024 Financial Performance at a Glance
5. Q1 2024 Key Business Line Developments

6 ESG Highlights

GFH Chairman and CEO's Commentary

Mr. Abdulmohsen Rashed Al Rashed

Chairman

• We're delighted to announce continued growth and enhanced profitability for the first quarter of 2024, marked by double-digit increases to the top and bottom line.
• These results reflect the sound contributions made from the Group's subsidiaries, and strong income generated from placements and fees from the Group's investment portfolios and treasury activities.
• Ongoing growth and progress remain rooted in the success of the Group's strategy and its focus on investing in well-performing defensive sectors and high-growth markets, in the region and internationally, where we have an active and growing presence.
• Having entered the year with positive momentum, we look forward to further expanding the Group's investments across core business lines and geographies and generating even greater value for shareholders and investors throughout the remainder of the year

Mr Hisham Alrayes

CEO and Board Member

• We are pleased to announce another quarter of growth and solid performance for the first three months of the year, where income increased by 55.1% and consolidated net profits rose by 13% year over year
• Gains made during the quarter are the result of further growth and enhanced contributions from our investment banking business and treasury and proprietary investments, as well as healthy income generated from our commercial banking activities
• During the quarter, we successfully made and placed new investments in recession-proof sectors and high-growth regional and global markets, worked to maximise the value of our existing portfolios, and secured several well-timed and profitable exits.
• GFH Partners closed additional new investments in the US in our key medical clinics and student housing sectors for US$450 million, as well as in the fast-growing electrical infrastructure services sector.
• We also generated solid income from the partial sale of our stake in Gulf Holding Company K.S.C.C and sold a 25% stake in Khaleeji Bank, which saw us bring on board new strategic shareholders as we work to take the Bank to the next level.

Chairman and CEO Quotes for Q1 2024 Results

A solid start to the year with continued robust momentum on financial and operational

performance

Robust Financial Performance

$163m Revenues +55% YoY

• Strong growth supported by exceptional Investment banking performance with all business lines contributing

$27.1m Shareholder Profits +13% YoY

• 11% Annualized ROE

$20.6 bn Assets & AuMs broadly in line with Dec-23 levels

• Ample liquidity with $4.9bn Cash and Treasury Portfolio

19.7% CAR, 219% LCR and 133% NSFR

• Strong Capital, liquidity and funding metrics well above regulatory minimums

Strong Business Growth

Momentum in investment banking activity with 5 investment banking business deals successfully closed in Q1 2024

Solid performance from the Group's strategic transactions

including sale of 25% of Khaleeji Bank to Strategic Investor

Recurring positive contributions from Group's Commercial

Banking

Significant growth YoY and strong contributions from the Group's Treasury and proprietary investments portfolio

Steady performance of major subsidiaries and associates

Unwavering Strategic Focus

Continue to pursue further strategic acquisitions to broaden

• expand our investment portfolio in key global markets to deliver additional value to shareholders

• Continuing discussions to acquire Ithmaar's financing and investment portfolios.
• Status update:

o Discussions are in progress to finalize and agree on the transaction structure and definitive documents.

o The discussions remain subject to due diligence, and satisfactory completion of key regulatory approvals

Sustainability & Community

Clear strategy to foster sustainable growth and positive societal impact

GFH has partnered with Al Areen Raffles in their sustainability initiative of creating a sustainable fruits & herbs garden with an aim to create a sustainable fresh source for its restaurants and grow the area greener

Extension of GFH's partnership with the FII Institute for another three years, aligning with the Group's ongoing international expansion and contributions to global economies.

Q1 2024 Performance at a Glance

2024 Strategic Aspiration for the Group

We look forward to further ramping up the Group's growth trajectory throughout 2024

Achieve inorganic

growth through mergers

& acquisitions

Across the Group's business lines, we remain focused on accelerating our strategy for non-organic growth through new investments, strategic partnerships and the acquisition of funds, portfolios, and other financial institutions, such as the investment portfolios of Ithmaar Holding that we are currently evaluating

Delivering growth in

AuM,

recurring revenue, significant income prospects and huge exit potential

We have an attractive pipeline of opportunities.

In the US, GFH Partners is working closely with our specialist asset management subsidiaries on-the-ground to identify and close new transactions to grow our existing portfolios.

Continue to maintain exits from the portfolios ensuring investor returns delivered in a timely manner

Create huge potential to monetise proprietary investments

Continue exploring growth opportunities in robust and resilient sectors to ensure robust and defensive returns to investors

in the GCC markets, and particularly, Saudi Arabia, GFH Capital S.A. is looking to build our presence and contributions to the growth of priority Vision 2030 sectors such as healthcare, education, and logistics, where we have deep expertise and a track record of success

Profitability growth to be maintained

Strategy snapshot

The Group continues to report solid results

Consolidated profits

24.0%Increase Q1-24 $30.3m Q1-23 $24.4m

Recurring profits growing by

~24% YOY

Assets and AUM

Q1-24 $20.6 bn

Q4-23 $21.1 bn

Due to sale of assets including real estate assets

Shareholder profits

12.9% Increase

Q1-24$27.1m

Q1-23$24.0m

Recurring profits to shareholders

growing by ~13% YOY

EPS

Q1-24$0.77

Q1-23$0.72

7% YoY growth in EPS

Total income

55.2%Increase

Q1-24$163m

Q1-23$105m

Strong growth in total income of

~55%

Assets

Q1-24 $10.6 bn

Q4-23 $11.1bn

Due to sale of assets including real

estate assets

Total Expenses

42.7% Increase

Q1-24$89.2m

Q1-23$62.5m

Strong performance despite higher YoY costs and provisions

Equity

Q1-24 $0.92 bn

Q4-23 $0.99 bn

Due to dividends distribution and change to the shareholding of the Group in Khaleeji

Key Performance Highlights

The Group continues to report strong growth in income and profits

Total Income

$m

	55%	163
105
Q1-2023		Q1-2024

Shareholder Profits		$m	o
ROE	9.8%	11.3%
	13%	27		o
	24
				o
	Q1-2023	Q1-2024

Strong growth in total income of +55%

YoY driven by solid performance across all the business lines

Momentum in investment banking

continues across PE and GFH Partners in Q1 2024 with 5 investment banking deals successfully closed (total fund size of over $200m)

Solid performance from the Group's strategic transactions. The Group had 2 strategic transactions, including sale of

Khaleeji AT1 and partial sale of stake in Gulf Holding.

Total Expenses

$m

	43%	89
62
Q1-2023		Q1-2024

Consolidated Profit

$m

24%	30
24
Q1-2023	Q1-2024

1. Recurring positive contributions from the Group's Commercial Banking business.

1. Total expenses, including impairment provisions increased by 43% YoY largely due to provisions

1. Strong growth in Shareholder profits of 13% YoY and consolidated profits of 24%

1. EPS for Q1 2024 was at $0.77 cents, growth of 6.9%

1. Recurring ROE ~11% during 2022- 2023 and March 2024

Q1 2024 Financial Results

The Group continues to report Strong Balance sheet

Total Assets

$bn

	5%
11.1	10.6
Q4-2023	Q1-2024

Quasi Equity

$bn

	6%
	3.7
3.5
Q4-2023	Q1-2024

Total Liabilities

$bn

6.6	14%
	5.8
Q4-2023	Q1-2024

Total Equity attributable to Shareholder's $bn

0.99	7%
0.92
Q4-2023	Q1-2024

1. As a Strategy, the Bank decided to tighten the liquidity to be raised which resulted in drop in total assets by 5% and drop in total liabilities by 14%.

1. Furthermore, the Bank decided to shift its funding profile from Murabaha to Wakala during the last quarter of 2023. This has resulted in an increase in the funding raised through Quasi Equity during Q1 2024 by 6%.

1. Shareholders' equity dropped during the quarter due to dividends distribution of $61m and change to the shareholding in Khaleeji from 85% in December 2023 to 64% in March 2024.

1. Of the total assets of the Group, c. 50% of the assets were liquid assets which has remained stable from the previous years

Q1 2024 Financial Results

Robust Capitalization, Liquidity and Funding Levels

Strong and resilient capital Base with CAR reported at c.19.6%

Strong liquid funds position translating into LCR of 219% as of March 2024 and

NSFR of 133% against a regulatory threshold of 100%.

Capital Adequacy Ratio

19.6%

14.4%

Reg level 12.5%

Mar 2023

Mar 2024

LCR

219.0%

179.0%

Reg level 100%

Mar 2023

Mar 2024

NSFR

133.0%

101.0%

Reg level 100%

Mar 2023

Mar 2024

Strong and resilient capital Base with room for		Strong liquid funds position
growth

Pro-active Balance sheet Management

Q1 2024 Financial Results