GHF Announces results for the first quarter 2010

 

12 May 2010
Source : Gulf Finance House (GHF)

Gulf Finance House (GFH) announced today a net loss of US$7.5m for the March Quarter 2010 compared to a loss of US$37.7m for the March Quarter 2009. GFH’s total income for the March Quarter 2010 was US$18.5m compared to March 2009 total income of US$49.5m.This compares to a net loss for the December Quarter 2009 of US$ 607 million including provisions with negative revenues of US$ 11.5m (due to associate losses) and a US$ 32 million operating loss for that quarter.

This improved performance during the quarter reflects the restructuring efforts taken by management. The operating costs were reduced by 45% this quarter.

GFH Chairman Esam Janahi said: “The March Quarter result was very pleasing especially that there were no provisions taken this quarter. . The Board has taken a very prudent approach in declaring this result and is committed to continuing transparency in the way we do business. The result also shows that management has taken the necessary steps to reposition GFH for a return to profitability in the near term. We look forward towards a continuing trend of improvement in the second quarter.”

Group Chief Executive Officer Mr. Ted Pretty commented: “We continue to work hard to improve our underlying performance. We have been focused on reducing our operating costs and meeting our debt commitments, and our efforts have been compensated by an encouraging US$ 24.5 million improvement in GFH operating results on the previous quarter. Besides, despite very challenging market times GFH has seen its revenues grow to US$ 18.5 million and has started the marketing and placement of new products which are expected to make important contributions to revenue in the next quarters. ”

Mr Pretty concluded: “Our objective is to ensure that we are well placed as the global markets improve. GFH had the courage to take the hard decisions in 2009 and now we can see a path to recovery for the Islamic finance sector. 2010 will be a bridge year from the challenges of 2009 to an improving market in 2010/2011.”

Mr. Pretty added: “GFH is a flagship institution in Bahrain and the Islamic financial sector and we are committed to working hard to set a better example as a model participant. Islamic finance has excellent growth prospects and GFH is well placed to take advantage of this growth.”