Gulf Finance House Q2 net loss of $11.23M -statement
GFH Q2 loss due to higher finance expenses, exchange rates; Swung to H1 profit of $700,000 from loss of $47.6 mln a year-ago; Total income in H1 climbed 27 pct to $32.8 mln
August 29, 2011 12:01 by Reuters
Bahrain’s Gulf Finance House posted a net loss of $11.23 million in the second quarter due to higher finance expenses and the impact of exchange rates, the company said in a statement on Tuesday.
The second-quarter loss was narrower than the $40.2 million loss the company posted in the comparable period one year ago. The Islamic investment house swung to a profit of $700,000 in the first half of the year, compared to a loss of $47.6 million in the same period in 2010.
Total income for the first half climbed 27 percent to $32.8 million, driven by asset sales and the settlement of liabilities.
“Looking ahead to the second half of the year, we expect a larger contribution to the income from our subsidiaries and associates, particularly Khaleeji Commercial Bank and G Capital,” said Hisham Al Rayes, chief investment officer at GFH, in the statement.
The company took a 47 percent stake in Bahraini retail bank Khaleeji Commercial Bank last November.
G Capital, a Dubai-based subsidiary, acquired Adabank in Turkey for $75 million earlier this month.
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’s chairman and major shareholder sold 7 million shares of the investment firm to Al AhliaBahrain in July, valued at 527,800 Bahraini dinars ($1.4 million). (Reporting by Shaheen Pasha; Editing by Erika Solomon)