Gulf Finance House announces financial results for the six months ending 30 June 2010

Net loss for the period was reduced by 50% to $47.7m compared to a net loss of US$92.1m for the first half of 2009. Expenses were reduced by 54% to $73.6m compared to total expenses of $160.1m in the first half of 2009.

GFH's balance sheet continued to be realigned as part of its recovery plan with total assets reducing to $1.4bn as at 30 June 2010 compared to $2.7bn as at 30 June 2009. Liabilities were reduced from US$1.8bn to $965m during the same period. Financing liabilities were reduced by 37% to $412m compared to US$652.5m as at 31 December 2009. During the period GFH repaid US$200m of an outstanding US$300m murabaha financing facility and refinanced the $100m balance to be repaid on 10 August 2010. Following the period end, the bank successfully renegotiated the repayment terms of the remaining $100m for a period of two years with a further one year until 2013 at the option of GFH.

Mr. Esam Yousif Janahi, Chairman of Gulf Finance House, 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."

Mr. Ted Pretty, Group CEO of GFH, said, "On all counts, we are making real progress and continue to do so. 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."