Global Investment House slumps to $101m Q2 loss

FINANCIAL WOES: Kuwait's Global Investment House continues to be impacted by tight credit conditions. (Getty Images)

Kuwait's Global Investment House reported a net loss of 29 million dinars ($101.1 million) in the second quarter, on investment losses and losses of associates.

Global, which defaulted on most of its debt earlier this year, is among the largest investment companies in Kuwait to face problems amid tight credit conditions.

First-half net loss came in at 98.6 million dinars, compared with a net profit of 82.2 million dinars in the year-earlier period, Global said in a statement on Sunday. Global is yet to reach a deal on its debt restructuring, it said.

The results missed a forecast of 19 million dinars second-quarter net profit by Shuaa Capital in a Reuters survey last month and compares with a net profit of 47.5 million dinars in the second quarter of 2008.

Total assets stood at 1.01 billion dinars on June 30, the statement said, without giving comparative figures. Global had reported assets of 1.39 billion dinars at the end of the first half of 2008, according to its website.

"The loss is mainly attributable to realised and unrealised losses and impairment from principal investments and real estate ... (and) losses from share of results of associates," it said.

Global posted a net loss of 69.5 million dinars in the first quarter of 2009, following a 360.5 million dinar net loss in the fourth quarter of last year. "Our first-half results continued to be impacted by market turbulence and decline," Maha al-Ghunaim, Global's chairman, said in the statement.

The bank began talks to reschedule its debt in December, appointing HSBC as an adviser to hold talks with its lenders.

The troubles of Global and other investment firms, including major Islamic firm Investment Dar, led the government of the world's fourth-largest oil exporter to approve a rescue package worth 1.5 billion dinars earlier this year.

Global's shares which have fallen 34.4 percent this year, were up 1.6 percent at Sunday's close. Earnings were released after trading hours. (Reuters)

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