Bahrain-based Gulf Finance House (GFH), an Islamic investment bank, has posted a 152 per cent rise in consolidated net profit to $10.6 million for the first half ended June 30, compared with $4.2 million for the prior year period.

The bank said it conservatively took an impairment of $10 million, said a report in the Gulf Daily News (GDN), our sister publication.

The net profit for the second quarter was $9.5 million as against $2.7 million achieved in the second quarter last year.

Total income for the first half was $88.2 million as against $24.5 million for the same period last year.

This includes $45.3 million from the consolidation of the results of industrial subsidiaries.

Excluding the income achieved from industrial businesses, this represents an increase of 75 per cent in the bank's income from investment banking business lines as against the comparable period last year.

Contributing to the result among other factors was the income of $33 million generated from recoveries of previous investments in the form of land, which was concluded during the second quarter.

Operating expenses for the period were $67.6 million.

Excluding expenses related to industrial operations, other operating expenses were $27.5 million versus $19.6 million incurred in the comparable period of last year.

The first half of the year also saw further progress in strengthening the balance sheet where GFH made debt repayments of approximately $7 million during the period representing a reduction of approximately 3.5 per cent of the bank's total financing liabilities.

Early in the third quarter, the bank has repaid a further $25 million to its financiers.

"We are pleased to announce another period of healthy results and enhanced profitability," GFH chief executive Hisham Alrayes said.

"In the first half, we concluded a number of investments in the UAE market, where we are looking to expand our exposure and benefit from strong dynamics in sectors, including education, tourism and real estate development.

"Among our other goals during the period was to continue strengthening the financial position.

"Our solid track record of timely debt repayments reflects healthy cash and financial position as well as an overall strong credit quality," he said.

"Through ongoing fiscal discipline and effective balance sheet management, we have put the bank on a stronger financial footing that will enable it to enter into the second half of the year well-positioned for pursuing new investments and achieving further financial growth and increased profitability," he added. - TradeArabia News Service