Gulf Finance House (GFH), a leading Bahrain-based financial group, said it has won approval from the shareholders for a reduction in the group’s issued and paid-up capital.

Announcing this on Sunday, GFH board chairman Dr Ahmed Al-Mutawa said the rate of reduction approved is six shares for each 10 shares held at a nominal value of $0.265 per share, thereby resulting in elimination of $897 million of accumulated losses.  

He was speaking at the Ordinary General Meeting and Extraordinary General Meeting of the Group held at the GFH headquarters in the Bahrain Financial Harbour.  

Dr Al Mutawa later briefed shareholders on the 2014 results and updated them on the group’s strategy and initiatives for this year.

A number of agenda items pertaining to the group's financial statements, reporting and governance were approved at the meeting by shareholders.

In addition to this, the investors also discussed the continuation of GFH’s shares listing in London and Kuwait Stock Exchange and authorised the board of directors to adopt the necessary resolutions in this respect.

On the group's performance, Dr Al Mutawa said: "We are pleased with the strong results for 2014, highlighted by a consolidated net profit of $17 million for the year. This comes in addition to other major steps taken to successfully recapitalise our balance sheet and strengthen the structure under which we operate."

"These actions, coupled with the shareholder approval we have received for important initiatives announced at our EGM, will enable us to further strengthen our financial position and ability to deliver value to our shareholders," stated the top official.

"In particular, the capital reduction will have a number of significant and long term benefits for the group and our shareholders. This includes positioning us to achieve a stronger credit rating, enhancing the value of our shares and most importantly paving the way for the distribution of dividends to shareholders in the future - which remains among our top priorities," he added.

One of the most recognised financial groups in the Gulf region, GFH is a key player in asset management, wealth management, commercial banking and real estate development.

The group's operations are focused in the GCC, North Africa and India. It is listed in Bahrain Bourse, Kuwait Stock Exchange and Dubai Financial Market.-TradeArabia News Service