Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, has posted a second-quarter net loss of US$54 million (Dh199m).
Gulf Finance House posts Q2 loss
Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, posted a second-quarter net loss of US$54 million (Dh199m) after booking more provisions and losses on its investments. It is the bank's third consecutive quarterly loss and compares with a profit of $104m in the second quarter of last year. Total income from placing regional investments fell 91 per cent to $18m for the second quarter, compared with $199m in the same period last year, GFH said in a statement today.
GFH said provisions taken against balance sheet assets for the quarter amounted to $38m in write downs of investments and receivables. "Caution amongst the investment community has carried through to the second quarter and this trend has dictated our activity," said Dr Esam Janahi, the chairman of GFH. "During the second quarter of the year we've focused not only on the origination of new projects but increasingly on the management and oversight of existing initiatives."
The bank cut its operating costs by 60 per cent year-on-year during the second quarter as part of cost control measures. Last week, the bank received approval from the country's central bank to increase its capital by as much as $500m to shore up its balance sheet and make future investments. email@example.com