Gulf Finance House net profit hits $10 million
Gulf Daily news 22/2/13
MANAMA: Gulf Finance House (GFH) yesterday reported a net profit of $10.03 million last year as compared to $0.38m in 2011.
The bank attributed profitability in 2012 to income from profitable investments as well as significant restructuring.
During the fourth quarter of 2012, GFH posted a net profit before provision of $12.9m with net profit after provision of $2.5m as compared to a net loss of $4m for the corresponding previous period.
This is due to income generated from the Leeds United football club investment and others.
"The results are a testimony to the determination of the board and executive management to turning around the bank positively following the financial crisis," GFH chairman Esam Janahi said.
"Despite the international, regional and local slowdown, we have met the challenges and have continued to maintain growth momentum and remain profitable.
Operating profit before provisions for the year saw an increase of 140 per cent to $20.43m compared to $8.5m in 2011.
Additionally, the bank saw a 31pc year-on-year reduction in operating costs from $62.87m to $43.15m, mainly due to streamlined operations and reduced facilities.
"The positive results come from our streamlining approach implemented in 2012, which resulted in a restructuring of investments. The value of this can be seen in the overall profitability," acting chief executive Hisham Alrayes said.
During the year, GFH successfully restructured the $45m remaining debt on a syndicated wakala facility worth $100m.
In addition, the bank also obtained approval from sukuk holders to restructure outstanding debt amounting to $105m.
GFH also obtained Westlb Syndicates approval to restructure $80m remaining from a $300m facility.
"Over the last 12 months we settled more than $100m of debt. All debts will mature now gradually by 2018 and will provide us with a two-year grace period for the repayment of the principal.
"This resulted in stronger liquidity position by the end of last year," Mr Alrayes added.
In 2012, GFH made significant forward movement on existing projects which stresses the bank's commitment to existing infrastructure projects and achieving successful investor exits.
Positive news came in the form of a reiteration by the new Tunisian government to support Tunisia Financial Harbour project and the underlying critical adjustments to adapt to the changing market conditions for The Royal Ranches Marrakech.
The bank progressed on all fronts and supported investments to foresee early partial investment redemption for Mumbai Economic Development Zone clients.
Furthermore, GFH undertook new investments, which indicates entrepreneurial initiative in exploring new areas and establishing new standards.
MANAMA: Gulf Finance House (GFH) yesterday reported a net profit of $10.03 million last year as compared to $0.38m in 2011.
The bank attributed profitability in 2012 to income from profitable investments as well as significant restructuring.
During the fourth quarter of 2012, GFH posted a net profit before provision of $12.9m with net profit after provision of $2.5m as compared to a net loss of $4m for the corresponding previous period.
This is due to income generated from the Leeds United football club investment and others.
"The results are a testimony to the determination of the board and executive management to turning around the bank positively following the financial crisis," GFH chairman Esam Janahi said.
"Despite the international, regional and local slowdown, we have met the challenges and have continued to maintain growth momentum and remain profitable.
Operating profit before provisions for the year saw an increase of 140 per cent to $20.43m compared to $8.5m in 2011.
Additionally, the bank saw a 31pc year-on-year reduction in operating costs from $62.87m to $43.15m, mainly due to streamlined operations and reduced facilities.
"The positive results come from our streamlining approach implemented in 2012, which resulted in a restructuring of investments. The value of this can be seen in the overall profitability," acting chief executive Hisham Alrayes said.
During the year, GFH successfully restructured the $45m remaining debt on a syndicated wakala facility worth $100m.
In addition, the bank also obtained approval from sukuk holders to restructure outstanding debt amounting to $105m.
GFH also obtained Westlb Syndicates approval to restructure $80m remaining from a $300m facility.
"Over the last 12 months we settled more than $100m of debt. All debts will mature now gradually by 2018 and will provide us with a two-year grace period for the repayment of the principal.
"This resulted in stronger liquidity position by the end of last year," Mr Alrayes added.
In 2012, GFH made significant forward movement on existing projects which stresses the bank's commitment to existing infrastructure projects and achieving successful investor exits.
Positive news came in the form of a reiteration by the new Tunisian government to support Tunisia Financial Harbour project and the underlying critical adjustments to adapt to the changing market conditions for The Royal Ranches Marrakech.
The bank progressed on all fronts and supported investments to foresee early partial investment redemption for Mumbai Economic Development Zone clients.
Furthermore, GFH undertook new investments, which indicates entrepreneurial initiative in exploring new areas and establishing new standards.