GFH Financial Group BSC (DFM:GFH) Q4 2025 Earnings Call Highlights: Strong Profit Growth and …

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Wed, February 18, 2026 at 10:05 AM GMT+9 4 min read

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**Shareholders' Profit:** Increased by 18.2% to $140 million for 2025.

**Consolidated Net Profit:** Grew by 13.2% year-over-year to $146 million.

**Total Income:** Increased by 8.4% to $720 million for the 12-month period.

**Total Expenses:** Increased by 6.9% at year-end.

**Earnings Per Share:** Rose to $3.9, a 20% year-on-year growth.

**Assets and Funds Under Management:** Grew by 8.4% to $23.6 billion as of December 31, 2025.

**Return on Average Equity:** Increased to 14% as of December 2025, compared to 12% in December 2024.

**Capital Adequacy Ratio:** Stood at 16.62%.

**Liquidity Coverage Ratio:** At 178%.

**Net Stable Funding Ratio:** At 135%.

**Wealth and Investment Management Contribution:** Accounted for 24% of total income.

**Credit and Financing Income Contribution:** Accounted for 22% of total group income, with income growth of 38.9% year-on-year to $155.2 million.

**Financing Income:** Grew by 22% to $173.5 million.

**Khaleeji Bank Net Profit:** Grew by 10.3% to $30.7 million.

**Treasury and Proprietary Investments Contribution:** Accounted for 54% of total income, recording $39.3 million.

**Share Price Performance:** Increased by approximately 90% during 2025.

**Proposed Cash Dividend:** Total of 10.11% on nominal value, equivalent to $0.0268 per share.

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Release Date: February 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

GFH Financial Group BSC (DFM:GFH) reported an 18.2% increase in shareholders' profit, reaching $140 million, demonstrating resilience and agility in strategy execution.

The group's total income for 2025 increased by 8.4% to $720 million, supported by diversified income streams and strategic investments.

Earnings per share rose by 20% year-on-year, reinforcing the group's profitable trajectory.

GFH Financial Group BSC (DFM:GFH) maintained a strong liquidity position, with liquid assets forming 45% of total assets.

The group achieved a higher return on average equity of 14% as of December 2025, up from 12% in December 2024.

Negative Points

Total expenses increased by 6.9% at year-end, which may impact future profitability if not managed effectively.

Contribution from treasury and proprietary investments decreased significantly to $39.3 million in 2025 from $382.4 million in 2024.

The group's capital adequacy ratio, while strong at 16.62%, may face pressure if asset growth continues without proportional capital increases.

Despite strong performance, the group's reliance on specific markets like the GCC and the need for geographic diversification could pose risks.

The group's strategic investments in AI and digital infrastructure require significant capital allocation, which could strain resources if not yielding expected returns.

 






Story Continues  

Q & A Highlights

Q: What are GFH Financial Group’s lines of investment in AI and its growth strategy? A: Bhaskar Mehta, Chief Risk Officer and Acting CFO, explained that AI investments are part of GFH’s broader thematic strategy. They view AI as a structural transformation reshaping industries globally. GFH invests in AI-driven businesses with strong fundamentals and scalable models. They also allocate capital to sectors supporting AI ecosystems, such as digital infrastructure, data centers, logistics platforms, and energy solutions.

Q: What are the plans for assets under management (AUM) for the current and next year, and what are the geographic priorities? A: GFH plans to continue growing its AUM as a stable income-generating vertical. Their geographic focus remains on markets with established presence and strong execution capability, particularly in the UAE and Saudi Arabia. They also maintain an active presence in the US, Europe, and the UK, focusing on income-generating assets. Additionally, GFH aims to expand in emerging markets, especially in technology and data-driven industries.

Q: Are there any projects or investments planned in Kuwait? A: Kuwait is an important market for GFH, where they have established a subsidiary office. They continue to explore opportunities and plan to expand their presence in 2026.

Q: Can you provide an update on Khaleeji Bank’s financial performance and regulatory ratios? A: Khaleeji Bank performed well, with a net profit of $30.7 million as of December 31, 2025. The bank maintains strong liquidity, with an LCR of 400% and NSFR of 103%, operating well above regulatory ratios. The improvement in the net funding margin contributed to its performance.

Q: What is the future vision and plan for GFH’s healthcare and education platforms? A: GFH plans to launch an IPO for Healian Healthcard in Saudi Arabia within the next 12 to 18 months. The education platform continues to have a significant presence in regional markets, and both sectors remain areas of interest for GFH.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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