GFH profits hit $10 million
Manama, February 22, 2013
Gulf Finance House (GFH) yesterday reported a net profit of $10.03 million for 2012 as compared to $0.38 million in 2011.
The bank attributed profitability in 2012 to income from profitable investments as well as significant restructuring, said a report in the Gulf Daily News, our sister newspaper.
During the fourth quarter of 2012, GFH posted a net profit before provision of $12.9 million with net profit after provision of $2.5 million as compared to a net loss of $4 million for the corresponding previous period, it said.
This is due to income generated from the Leeds United football club investment and others.
"The results are a testimony to the determination of the board and executive management to turning around the bank positively following the financial crisis," GFH chairman Esam Janahi said.
"Despite the international, regional and local slowdown, we have met the challenges and have continued to maintain growth momentum and remain profitable.
Operating profit before provisions for the year saw an increase of 140 per cent to $20.43 million compared to $8.5 million in 2011.
Additionally, the bank saw a 31pc year-on-year reduction in operating costs from $62.87 million to $43.15 million, mainly due to streamlined operations and reduced facilities.
"The positive results come from our streamlining approach implemented in 2012, which resulted in a restructuring of investments. The value of this can be seen in the overall profitability," acting chief executive Hisham Alrayes said.
During the year, GFH successfully restructured the $45 million remaining debt on a syndicated wakala facility worth $100 million.
In addition, the bank also obtained approval from sukuk holders to restructure outstanding debt amounting to $105 million. - TradeArabia News Service