GFH's total income for the first quarter 2010 was $18.5 million compared to first quarter of 2009 total income of $49.5 million.
"This compares to a net loss for the last quarter of 2009 of $607 million including provisions with negative revenues of $11.5 million (due to associate losses) and a $32 million operating loss for that quarter," the bank said in a statement.
GFH in a statement attributed the improved performance during the first quarter of 2010 to the restructuring efforts taken by management. "The operating costs were reduced by 45 percent this quarter," it added.
"The fist quarter 2010 result was very pleasing especially that there were no provisions taken this quarter," said Esam Janahi, chairman of the GFH board of directors.
"The board has taken a very prudent approach in declaring this result and is committed to continuing transparency in the way we do business. The result also shows that management has taken the necessary steps to reposition GFH for a return to profitability in the near term. We look forward toward a continuing trend of improvement in the second quarter," Janahi added.
"We continue to work hard to improve our underlying performance. We have been focused on reducing our operating costs and meeting our debt commitments, and our efforts have been compensated by an encouraging $24.5 million improvement in GFH operating results on the previous quarter," said group Chief Executive Officer Ted Pretty.
"Besides, despite very challenging market times GFH has seen its revenues grow to $18.5 million and has started the marketing and placement of new products which are expected to make important contributions to revenue in the next quarters," Pretty added.
"Our objective is to ensure that we are well placed as the global markets improve. GFH had the courage to take the hard decisions in 2009 and now we can see a path to recovery for the Islamic finance sector. 2010 will be a bridge year from the challenges of 2009 to an improving market in 2010/2011," the group CEO said.
