GFH’s Britus Education Deal to Conclude This Year
The sale of GCC-based K-12 Britus Education, the education platform of GFH Financial House for which agreement was signed in November last year, is slated for completion this year, GFH’s Chief Financial Officer Surya Hariharan said.
According to media reports, the market value of Britus was said to over $200 million and sold to the Saudi Education Fund, which is managed by the private equity arm of EFG Hermes. “The deal was not concluded in 2024 and it is expected to be completed this year,” Hariharan said while replying to questions from shareholders during Earnings Call on Sunday.
To another question on other operating expenses reaching $96 million in 2024, which may affect the company’s initiatives cost cutting measures, Hariharan said that GFH has been growing throughout the region and this expansion meant investing in resources in each of these jurisdictions. With this plan implemented, the company will seriously consider cost rationalisation going forward, he said.
Disclosing the financial results for FY24, he said that the Group has achieved net profit attributable to shareholders of $118.5 million, up 15% compared with the preceding year. The income during the financial year rose by 40% to $677 million driven by the continuous strong performance of its all business verticals.
Hariharan further said that the Group’s Assets & AUMs has further grown to $21.5 billion and the capital adequacy ratio (CAR) stood at 16.67%, LCR at 195% and NSFR at 137% well above the regulatory minimum threshold. The consolidated net profit for the twelve months was US$128.3 million, an increase of 22%.
The company has further capitalised on opportunities for growth in its core regional markets with an emphasis on Saudi Arabia and the UAE. This is in addition to strengthening the Group’s existing access to the US as a mature market, allowing us to continue to offer compelling asset management and investment products.
The company has stable liquid assets with 48% of the assets in cash & treasury portfolio totalling around $5.3 billion. Total equity attributable to shareholders of $990 million, is broadly in line with 2023 balance.
The company’s performance translated into a higher return on Equity as of December 2024 which stood at 12% compared with 9.8% as of December 2023.
Business Deals
The momentum in investment banking and proprietary Investments including 13 investment banking business deals were successfully closed in 2024.
Additionally, in line with the Group’s commitment to deliver strong and timely returns to our investors, its private equity team achieved notable exits in 2024, including an early exit from GFH’s joint investment in Citrix, which was exited 18 months ahead of its projected three-year horizon.
Investment Banking, the company’s core business line, contributed 27% of the total income and the private equity investments contributed to the expansion of GFH’s regional and international footprint last year. These include investments in regional healthcare, the maritime industry as well as increased investments in sustainable infrastructure and renewable energy.
The income from Group’s commercial banking arm Khaleeji Bank improved compared with the previous year and contributed 22% to the total income. Khaleeji Bank achieved a net profit of $27.86 million attributable to the bank’s shareholders for the fiscal year ended 31 December 2024, compared with a net profit of $23.88 million in 2023, an increase of 16.67%, Hariharan added.
