Gulf Finance House net profit rises 50 percent

Gulf Finance House (GFH), Bahrain-based Islamic investment bank, has announced its financial results for the first quarter ended March 31, 2013 recording another period of sound results and profitability.
GFH reported a net profit of $ 1.5 million for the quarter compared with $ 1 million during the same quarter in previous year, an increase of 50 percent.
Total income for the period was at $ 11.1 million compared to $ 12.9 million during the first quarter of 2012.  
Income was primarily from management fees from funds under management and also, profit of $ 4.9 millionfrom repurchase of debts at discount.
The bank’s strategy of streamlined operations continued to bear results with a 30 percent reduction in the operating costs for the current quarter at $ 8.3 million compared to $ 11.9 million in Q1 2012.
Hisham Al-Rayes, acting CEO of GFH, said: “Enhanced results for the quarter were derived from ongoing efforts to strengthen the underlying performance of the bank and our asset base, which remains significant and holds considerable value.”
He said: “During the quarter, the bank and its subsidiaries focused on maximizing the value of existing investments. Importantly, GFH Capital undertook due diligence on a number of potential strategic investors for Leeds United FC and the Bank worked on exit arrangements for Mega City Navi Mumbai.”
He said: “Today, GFH is a bank firmly focused on maximizing the potential of our current portfolio of investments and working on early exits from our projects.”
Al-Rayes added: “We have also been focusing on the further profitable growth for the Bank and our investors leveraging our expertise and ability to structure unique products in growth sectors. We are pleased with the results of our efforts over the past quarter and look forward to announcing further progress in the coming period.”