Gulf Finance House B.S.C. delivers strong H1 results; net profit rises to USD28.5 million

Continuing the strong growth in earnings recorded in the first quarter, GFH rewarded its shareholders with year-on-year growth of 240 per cent for the first half of 2004. Net profit reached US$28.5 million compared to US$8.4 million for the same period last year.

Dr. Fuad Al-Omar, Chairman of GFH commented: "The consistency of GFH's enhanced performance is highly encouraging to both its Board of Directors and shareholders. The bank is benefiting from a healthy pipeline of prestigious projects that have proved to be very attractive to our clients."

"The management team continues to display a great talent for innovation and credit must be given to them for their origination skills. It has been a very exciting year so far and there is much more good news to come. We would also like to place on record our sincere appreciation of the efforts and continued support of the Bahrain Monetary Agency (BMA)," he added.

GFH was listed on the Bahrain and Kuwait stock exchanges in January 2004. With the majority of the shareholders being major financial institutions, GFH has carved out a niche as a leading Islamic investment bank with a reputation for leading the industry, both in terms of the innovative nature of its projects and products, and in terms of the quality of its management.

Mr. Esam Janahi, CEO of GFH said: "Our success is built on the support of our clients and our reputation is very important to us. We listen to our clients and seek to deliver their requirements. Bahrain Financial Harbour, Al Areen Desert Spa & Resort, our Al Andalus project in Spain, to name but a few, are projects of prestige and quality that appeal to our clients.

He said the investment bank's ongoing regional expansion has seen GFH taking a significant stake in the Al Batinah Development and Investment Holding Company in the Sultanate of Oman, in cooperation with strategic partners from the Gulf region. GFH has also signed an MoU with the Dubai Development and Investment Authority (DDIA), proposing to co-promote the Arabian Legends theme park in Dubailand in the UAE.

Commenting on the challenge of continuing this level of performance into the future, Mr. Janahi said: "Maintaining this high level of momentum is undoubtedly challenging. However, we have already identified a stream of investment banking income that will see us through to the end of the year and beyond. Our business is growing on the back of a successful business model."

Commenting on the increase in operating expenses, Mr Janahi stated: "In order to sustain our continuing growth, we are reorganizing many aspects of the bank's operations and investing significant sums in new offices, new professional staff and new information technology systems"

GFH more than doubled its net worth to US$215 million as at June 30 2004 as a result of a capital increase in January and the growth in earnings since then.