The bank’s return to profitability in 2011 was the result of strong shareholder support, investor loyalty and a dedicated management team committed to seeing through the significant restructuring and recapitalization plan that was set in motion in 2010. And this has seen the bank return to a net profit of $381 thousand in 2011 as compared to a net loss of $349 million in 2010. Operating profit before provisions were $ 9 million in 2011 as compared to a loss of $93 million in 2010, signaling a restart in GFH income.

Additionally, the bank saw a 37 percent reduction in operating costs during 2011. During Q4 2011, GFH had a net loss of $4 million as compared to a net loss of $187 million in 2010, primarily because of $8 million of impairment provisions.

The bank has focused its efforts since 2009 on cleaning up its balance sheet by clearing most of its outstanding debts. GFH was among the first investment banks in Bahrain and the region to take this move, which was seen as being very controversial in the beginning with negative effects on the Bank’s financial standing in the short term. As part of its restructuring plan, GFH also reduced its liabilities by 33 percent in 2011. Additionally, GFH continued to pursue its recapitalization plan, targeting GCC sovereign funds and investors. These efforts have born fruitful results to date.

Esam Janahi, executive chairman of GFH, commented on the 2011 results saying: “Global, regional and national economies were all subjected to significant stress factors during 2011, which impacted several sectors significantly, not least of which was the financial sector. We met these challenges with a solid strategy, which was put in place in 2010 to correct GFH’s trajectory, and which we felt was capable of dealing with the additional stressors we saw last year.”