GFH Financial Group Q1 2016 Results Presentation to Investors and - - PowerPoint PPT Presentation

gfh financial group q1 2016 results
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GFH Financial Group Q1 2016 Results Presentation to Investors and - - PowerPoint PPT Presentation

GFH Financial Group Q1 2016 Results Presentation to Investors and Analysts For the Period Ended March 31 st 2016 GFH Financial Group Q1 2016 Results Presentation 1 | Important Notice and Forward-Looking Statements Important notice The


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GFH Financial Group Q1 2016 Results Presentation

GFH Financial Group Q1 2016 Results

Presentation to Investors and Analysts

For the Period Ended March 31st 2016

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GFH Financial Group Q1 2016 Results Presentation

Important Notice and Forward-Looking Statements

Important notice

The information set out in this presentation and subsequent webcast does not constitute a public offer for the purposes

  • f any applicable law or an offer to sell or solicitation of any offer to purchase any securities or other financial

instruments or any recommendation in respect of such securities or instruments.

Forward-looking statements

This presentation and subsequent webcast may contain projections, estimates, forecasts, targets, opinions, prospects, results, returns and forward-looking statements with respect to the financial condition, results of operations, capital position and business of the Group (together, “Forward-Looking Statements”). Any such Forward-Looking Statements are not a reliable indicator of future performance, as they may involve significant assumptions and subjective judgments, which may or may not prove to be correct, and there can be no assurance that any of the matters set out in Forward-Looking Statements are attainable, will actually occur or will be realized or are complete or accurate. Forward- Looking Statements are statements about the future and are inherently uncertain and generally based on stated or implied assumptions. The assumptions may prove to be incorrect and involve known and unknown risks, uncertainties, contingencies and other important factors, many of which are outside the control of the Group. Actual achievements, results, performance or other future events or conditions may differ materially from those stated, implied and/or reflected in any Forward-Looking Statements due to a variety of risks, uncertainties and other factors (including without limitation those which are referable to general market conditions or regulatory changes). Any such Forward-Looking Statements are based on the beliefs, expectations and opinions of the Group at the date the statements are made, and the Group does not assume, and hereby disclaims, any obligation or duty to update them if circumstances or management’s beliefs, expectations or opinions should change. For these reasons, recipients should not place reliance on, and are cautioned about relying on, any Forward-Looking Statements.

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GFH Financial Group Q1 2016 Results Presentation

Agenda

1. Group Highlights 2. Q1 2016 Financial Performance Review 3. Strategic Outlook 4. Q&A

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GFH Financial Group Q1 2016 Results Presentation

Commercial Banking

  • Khaleeji Commercial Bank (“KHCB”) delivered strong growth in net income of

70% year-on-year ($7.5 million) – Impressive growth in financing assets of 23% year-on-year ($1.1 billion) – Continued momentum in retail banking division with segmental net profit growing by 30% – On-going cost management with cost-to-income decreasing from 59% (Q1 2015) to 46% (Q1 2016)

Group Highlights

Private Equity & Asset Management

  • Strong levels of fee generation for the Group in Q1 2016 of $8.7 million

– Positively impacted by Group’s role in selling apartments to its investors in 1 Palace Street, a prime residential development overlooking Buckingham Palace Group net income attributable to shareholders increased 177% to $6.1 million in Q1 2016

  • Group results positively impacted due to recovery from Ex-Chairman and

settlement of other receivables to the Group

  • Continued income diversification, with growing contribution from Private

Equity & Asset Management and Commercial Banking

  • Strong increase in RoC with annualized Q1 2016 RoC reaching 4.1%

Recoveries, Income Diversification & RoC

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GFH Financial Group Q1 2016 Results Presentation

Agenda

1. Group Highlights 2. Q1 2016 Financial Performance Review 3. Strategic Outlook 4. Q&A

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GFH Financial Group Q1 2016 Results Presentation

Commercial Banking – Strong Growth in Net Income of 70%

Financing Assets ($m) (1) Customer Deposits ($m) (2) Total Income ($m) Net Income ($m)

878 1,083 Mar 2015 Mar 2016

(1) Includes financing assets and assets acquired for leasing. (2) Includes customers’ current accounts and equity of investment account holders. (3) Annualized.

1,159 1,169 Mar 2015 Mar 2016

Loan to Deposit Ratio 76% 93%

11.5 16.0 Mar 2015 Mar 2016 4.4 7.5 Mar 2015 Mar 2016

59% 6.7% 46% 10.8% Cost to Income Ratio Return on Capital (3)

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GFH Financial Group Q1 2016 Results Presentation

Private Equity & Asset Management – Strong Levels of Fee Generation

Fee Income Generation ($m)

11.8 8.7 Mar 2015 Mar 2016

  • Strong levels of fee generation for the Group

in Q1 2016 of $8.7 million – Positively impacted by Group’s role in selling apartments to its investors in 1 Palace Street – 1 Palace Street is located opposite Buckingham Palace and comprises 72 extraordinary apartments, each individual in design and layout

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GFH Financial Group Q1 2016 Results Presentation

Income Diversification & Profitability

Income Diversification

Q1 2016 Group Income Contribution 2019 Expected Group Income Contribution

14.2% 17.0% 55.5% 13.3%

The Group is aiming to diversify its operations as well as targeting to generate an ROC of 8-10% by 2019

RE Devt. PE & AM Commercial Banking Other 15.0% 20.0% 25.0% 15.0% 15.0% 10.0% RE Devt. PE Commercial Banking AM GFH Capital & Other Subsidiaries Other

Group Profitability (Return on Capital)

By 2019 By 2019

0.6% 4.1% Mar 2015 Mar 2016 2019 Expected 8-10%

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GFH Financial Group Q1 2016 Results Presentation

Agenda

1. Group Highlights 2. Q1 2016 Financial Performance Review 3. Strategic Outlook 4. Q&A

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GFH Financial Group Q1 2016 Results Presentation

GFH Financial Group – A Fully Integrated Financial Services Group…

Wealth Management

47%

Commercial Banking

GFH Stake

Harbour Row Real Estate Devt. Dubailand India Morocco Tunisia Private Equity New PE Deals

16% 13% 5% 18% 18%

Asset Management New RE Investments Jeddah Mall

6%

US DURP

7%

US Industrial 5% Subsidiaries GFH Capital

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GFH Financial Group Q1 2016 Results Presentation

…Led by a Completely Independent Board of Directors…

Chairman

  • Dr. Ahmed

Al-Mutawa Vice-Chairman Mosabah Al-Mutairy Board Members

  • Sh. Mohammed Bin

Duaij Al-Khalifa Bashar AlMutawa

  • Dr. Khalid

AlKhazraji Mohammed Talib Faisal Abdulla Abubshait Yousef AlGhanim Jassim Al Seddiqi (1) Hisham Alrayes

(1) Representing Abu Dhabi Financial Group as major shareholder.

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GFH Financial Group Q1 2016 Results Presentation

Abdulrahman Almalki (Kuwait) Razi Almerbati (Bahrain, Jeddah & Eastern Province)

… And Complemented by a New Management Team

Chief Executive Officer Chief Financial Officer Investment Team Real Estate Development Hisham Alrayes Risk

Chief Administrative Officer

Compliance Internal Audit Legal Investor Relations Wealth Management Chandan Gupta Salem Patel Mohamed Marei Elias Karaan Ajay Subramanian Baha Al-Marzooq Gaby Elhakim Hazim Abdulkarim Nabeel Mirza

Mohammed Abdulmalik Head of WM Mahmood Alkooheji (Riyadh) Mohamed Khonji (UAE & Oman)

Mohamed Ameen

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GFH Financial Group Q1 2016 Results Presentation

Agenda

1. Group Highlights 2. Q1 2016 Financial Performance Review 3. Strategic Outlook 4. Q&A

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GFH Financial Group Q1 2016 Results Presentation

Q&A

Thank You Q&A