Bahrain-based Gulf Finance House (GFH) has reduced its first half net loss by 50 per cent to $47.7 million compared to a net loss of $92.1 million for the same period in 2009. 

Total revenue for the period was $25.9 million compared to $67.9 million for the first half of 2009 following a reduction in income from investment banking services, the bank said in a statement. 

Expenses were reduced by 54 per cent to $73.6 million compared to total expenses of $160.1 million in the first half of 2009, it said.

The bank made significant progress in executing upon its recovery plan, the statement said.

GFH’s balance sheet continued to be realigned as part of its recovery plan with total assets reducing to $1.4 billion as at June 30, 2010 compared to $2.7 billion as June 30, 2009.  Liabilities were reduced from $1.8 billion to $965 million during the same period. 

Financing liabilities were reduced by 37 per cent to $412 million compared to $652.5 million as at  December 31, 2009, it said.  During the period GFH repaid $200 million of an outstanding $300 million murabaha financing facility and refinanced the $100 million balance to be repaid on August 10, 2010. 
Following the period end, the bank successfully renegotiated the repayment terms of the remaining $100 million for a period of two years with a further one year until 2013 at the option of GFH, the statement said.

Esam Yousif Janahi, chairman, said: “Our half year results demonstrate the progress GFH has made in taking good steps in the implementation its recovery plan.  Our focus now will be on strengthening the capital structure of GFH and working towards our new business model.”

Ted Pretty, group CEO of GFH, said: “On all counts, we are making real progress. Like every global investment bank GFH has had to review its business model, adjust its liquidity profile and reassess its investment projects.  GFH’s recovery plan and new strategy will position a stronger GFH to capture the potential value of Islamic finance across the region and beyond for the benefit of investors, shareholders and customers.” – TradeArabia News Service