Gulf Finance House net profits for 2012 surge to $10.03m
- Bahrain: Sunday, February 24 - 2013 at 12:24
- PRESS RELEASE
Gulf Finance House (GFH) announced its financial results for the fiscal year 2012. The Bank posted a net profit of $10.03m when compared to $0.38m in 2011.
Operating profit before provisions were $20.43m when compared to $8.5m in 2011 an increase of 140%. Additionally, the Bank posted reduced operating costs from $62.87m to $43.15m, a 31% reduction when compared to the same period last year, which was mainly attributable to continued efforts to maintain streamlined operations and reduced facilities. During the fourth quarter of 2012 GFH had a net profit before provision of $12.9m with net profit after provision of $2.5 when compared to a net loss of $4m in 2011. This is accredited to the income generated from the Leeds F.C. investment and other investment companies.
Expressing his satisfaction with the results for 2012, Mr. Esam Janahi, Chairman of GFH commented: "These results are a testimony to the determination of the board and executive management to turning around the bank's activities positively following the financial crisis. Despite the slowdown in the international, regional and local economies, at GFH we have met the challenges and have continued to maintain its growth momentum and remain profitable. We are committed to providing long term benefits for our shareholders, our investors and our employees and appreciate the commitment, dedication and support extended towards the growth activities of the Bank.
I would like to express my gratitude to the executive management team's efforts in restructuring the banks liabilities and continuously pursuing opportunities which resulted in accelerated development and progress of the Bank," he concluded.
Commenting on the financial results for 2012, Hisham Alrayes, Acting CEO of GFH said, "The Bank's positive results come from our streamlining approach, implemented in 2012, and resulting in a restructuring of GFH's investments. The value of this can be seen in the Bank's overall profitability."
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 its Sukuk holders to restructure its outstanding debt amounting to $105m. The Bank has obtained Westlb Syndicates approval to restructure $80m remaining from $300m facility. Over the last twelve months we settled more than $100million of our debt. All debts will mature now gradually by 2018 and will provide us with two-year grace period for the repayment of the principal amounts. This resulted in stronger liquidity position by the end of last year.
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 newly appointed Tunisian government to support Tunisia Financial Harbour (TFH) project and the undergoing critical adjustments to adapt to the changing market conditions for The Royal Ranches Marrakech. The Bank has progressed on all fronts and supported investments to foresee early partial investment redemption for the Mumbai Economic Development Zone (MEDZ) clients.
Furthermore, GFH has undertaken new investments, the Leeds United F. C. being one of them, which indicates the bank's entrepreneurial initiatives in exploring new area of investments and establishing new standards. These should prove to be successful milestones for the Bank.
Mr Alrayes concluded, "I would like to thank the Board of Directors for their support, all staff members of GFH and the Central Bank of Bahrain for their invaluable support and strategic guidance".
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