Bahrain’s GFH makes $40 mln Q2 net loss
Q2 net loss $39.9 mln vs $54.4 mln net loss in Q2/2009.
August 20, 2010 8:57 by Reuters
Bahrain’s Gulf Finance House, which is trying to raise more capital to improve its liquidity, made a second-quarter net loss of $39.9 million, according to Reuters calculations.
The Islamic investment house said in a statement its net loss during the first half of the year was $47.7 million, compared with $92.1 million during the year-earlier period.
GFH, which did not disclose details for the second quarter, made a net loss of $54.4 million in the second quarter of 2009.
Bahraini investment houses came under pressure after a regional property crash in 2008 effectively ended their business model of earning fees on investor money they raised for property and real estate projects.
GFH has managed to reduce its losses mainly through cost cuts. But it has struggled to sell down its assets to pay the debt it took during the boom years and last week struck a last-minute deal with lenders to extend a $100 million loan by up to three years.
It has said it will raise capital, with its shares being suspended until the increase is approved.
(Reporting by Frederik Richter; Editing by David Holmes)