Gulf Finance House Commercial Bank announces 80 per cent rise in net profit at BD2.8 million

The bank which started its operations in December 2004-end also reported a nearly 70 per cent rise in its total assets to BD51 million from BD30.2 million, indicating the rapid pace of its activities and growth in a short span of time. The bank's operating income now stands at BD4.3 million compared to BD1.8 million at the start of its operations.

Commenting on the results and the successful performance of the bank during the period ending 30 September 2005, Dr. Fuad Al-Omar, Chairman of GFHCB said:

"The excellent results for the first nine months of the fiscal year reflect the success of the growth strategy of the bank. During this period, GFHCB has successfully managed to cash in on the surging economic growth of the Kingdom of Bahrain as well as the region, by playing an active role in a number of projects as well as fund raising exercises."

"The results are also a vindication of the confidence and trust shareholders and investors have vested with the bank which has a predominant focus on the booming real estate and infrastructure development sectors of Bahrain and the region," he added.

The total shareholders equity of the bank at the end of the first nine months stood at nearly BD33 million compared to BD29.8 million in December 2004.

The first nine months of 2005 was a very active period for GFHCB with the bank involving itself with projects outside the Kingdom of Bahrain, by being appointed as the lead financier for the US$1 billion Royal Metropolis project in the Hashemite Kingdom of Jordan. GFHCB has also simultaneously signed a Memorandum of Understanding (MoU) with one of the leading financial institutions of Jordan, Jordinvest, which will assist GFH and GFHCB in arranging and structuring financing for the first phase of the Royal Metropolis project - Jordan Gate.

The bank also played a major role in the financing of Bahrain Financial Harbour (BFH) Al Marfa'a Al Mali Sukuk.

Elaborating on the results, Mr. Ebrahim Hussain, General Manager of GFHCB, said: "The bank, since its inception in December 2004, has been able to carve a niche for itself in the Kingdom of Bahrain and the region. The bank's growth comes in the context of robust economic climate of the region and we are confident that the continuing economic growth will unveil more opportunities for us to take part to maximize returns for our shareholders and investors."

"The bank is now poised for further expansion and we will be soon moving to new larger premises in Zamil Tower in Bahrain in the fourth quarter of the year. We have also lined up strategic expansion plans and are looking at playing significant roles in a number of real estate and infrastructure development projects in the region soon," he said.

Recently, GFHCB announced 70 per cent sale of the private residential community, Oryx Hills, within the Al Areen development in Bahrain, which the bank plans to develop in cooperation with various partners.

"The bank will also announce more Shari'a- compliant investment products following the enthusiastic response from regional investors to its various unique instruments that track the regional real estate sector. The success of the bank endorses the vision of the bank and reflects the diligence of the management of the bank. Our mission is to make the bank one of the leading domestic and regional commercial Islamic bank providing innovative and high quality Shari'a compliant products, services and investment opportunities for our clients," Mr. Hussain said.

GFHCB's maiden portfolio of investment products- the Amlak, Al Hareth and Mudarabah Investment Account - continues to perform well.