Dr. Ahmed Al Mutawa
GFH 9-month profit down
Manama, November 14, 2013
Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, reported a net profit of $1.02 million for the first nine months of the year, compared with $7.54 million in the corresponding period of 2012.
Total income for the period was $29.70 million compared to a total income of $41.35 million for first nine months of 2012, the bank said.
Results for the third quarter showed a net loss of $3.15 million as compared to $1.80 million profits in the third quarter of last year, while total income for the third quarter was $5.21 million versus $8.7 in the third quarter of 2012.
Results for the quarter were impacted by losses incurred from an associated financial institution, mandatory provisioning and reduction in income contribution, a statement said.
Positively, and underscoring continued efforts to enhance efficiency and streamline operations across the bank, operating costs for the first nine months of the year were reduced by 19 per cent to $27.45 million compared to $33.81 million for the prior year period.
Dr. Ahmed Al Mutawa, chairman of GFH, said: "While we continue to move forward with our strategy to enhance efficiency and better position the bank to excel, our results for the period and third quarter were impacted by a number of factors but primarily due to a number of income transactions, which were planned for the third quarter but were actually achieved in the fourth quarter. Accordingly, we expect stronger performance in the fourth quarter and good results for the year." Hisham Alrayes, acting CEO of GFH, added: “With the re-alignment of our business and a good credit rating and market confidence to support us, we are ready to transact and to deliver positive results in the next quarter. In the periods ahead, we will look closely at the UK residential real estate market, where we have already undertaken a number of successful transactions and profitable sales recently.
“Additionally, we will also seek out private equity and real estate in other developed markets of the world, where we see opportunities for secured streams of income and value creation at a low risk for the bank, our shareholders and clients. We have a strong pipeline of opportunities in front of us and look forward to building on these as we go forward." – TradeArabia News Service