The bank said it had made significant progress in executing upon its restructuring and recapitalization plan.

The operating costs have drastically been reduced by 20 percent in 2010.

The bank said t had successfully exited some of its assets including its stake in the Bahrain Financial Harbor, Qinvest and Saudi Real Estate Company with cash and assets proceeds reaching around to $300 million.

“GFH’s balance sheet continued to be realigned throughout the year as part of its restructuring plan with total assets reaching $1 billion in 2010. Liabilities were reduced from $1.2 billion to $900 million and financing liabilities were reduced by 33 percent to $440 million compared to $653 million as at 31 December 2009,” it added.

The bank restructured its debt profile by repaying $200 million of an outstanding $300 million Murabaha financing facility in February 2010 to syndicates arranged by West LB and refinanced the $100 million balance to be paid in August 2010.

Following the period-end, the bank successfully renegotiated the repayment terms of the remaining $100 million for a period of two years with a further one year until 2013 at the option of GFH. The bank has significantly cut costs by 20 percent with total expenses falling to $101 million, and staff costs down by 37 percent to $18 million.

Later in 2010 GFH presented its plans to improve the bank’s capital structure, strengthen its balance sheet and raise funds to pursue its growth strategy at the AGM/EGM held in November 2010 where resolutions were approved by GFH shareholders.

The resolutions covered a 4:1 share consolidation and other capital reduction measures including raising up to $500 million through a convertible Murabaha to strengthen the bank’s capital base and fund its growth strategy, and acquiring an additional 10 percent stake in Khaleeji Commercial Bank.

GFH has received participations of over $100 million toward its recapitalization plan from some gulf sovereign funds and gulf investors post obtaining the relevant approvals.

GFH is anticipating receiving additional participation during the course of this year to further support its business growth and strengthen its position in the market.