GFH, which is aiming to raise $500 million in new capital, said net profit for the quarter ended March 31 was $11.9 million, compared with a net loss of $7.5 million a year earlier.
The investment firm reduced expenses by about 50 percent to $14.5 million mainly due to stringent cost cuts and debt restructuring, it said in a bourse statement.
Total income for the quarter was $26.4 million, mainly due to reversal of an employee reward program in 2008 in which the company granted certain bonus shares to employees.
GFH said it has so far raised $120 million from investors in new capital through issue of equity-linked convertible Murabahas.
A Murabaha is an Islamic money market product accounted for on banks' balance sheets, under which a bank buys an asset from a third party and sells it to its customer at cost plus profit, thereby providing financing without charging interest.
GFH has been hard hit by the Gulf's economic crisis and struggled throughout 2010 to pay back the debt it took on during the Gulf property boom that ended in 2008.
The company has been unable to find new revenue sources after its earlier business model of earnings fees on money it raised for real estate projects in the region collapsed with the property crash.
