Bahrain-based Gulf Finance House (GFH), a leading Islamic investment bank, has reported a net profit of $1.1 million for the first quarter (Q1) of the year compared to $1.5 million for Q1 of 2013, marking a drop of 26.6 per cent.

Total income for the period was $29.7 million compared with $11.1 million during the first quarter of 2013. This includes $22.5 million from consolidation of the results of Cemena Holding, which became a subsidiary of GFH during the quarter, and which is involved in the industrial business. Operating costs for the quarter were $28.6 million.

Excluding costs related to industrial operations, normalized operating expenses were $8.8 million versus $8.3 million in the prior year period, with the bank continuing efforts to align costs and streamline operations.

Hisham Alrayes, CEO of GFH, said: "The first quarter of the year was a period of continued progress and stable results for GFH. This included good performance at a number of our subsidiaries including Cemena Holdings, the Bank's industrial investment company.

“Core to our strategy has been to maximise the value of our assets and we are pleased with ongoing developments on this front. This includes further strides on key projects such as the Tunis Financial Harbour during the quarter, where significant advancements have been made on infrastructure works for Phase I of the mega project.”

Dr Ahmed Al-Mutawa, chairman of GFH, said: "GFH has started executing a strategy to achieve a growth in profitability in the periods ahead. In doing so, the coming months will see the Bank focus on four core verticals - Asset Management, Commercial Banking, Real Estate Development and the Industrial activities - all areas in which we have significant expertise and track record and where we continue to see strong opportunities for the Bank and our investors." – TradeArabia News Service