Bahrain’s Gulf Finance House on Thursday posted a net loss of $47.7m for the first half of 2010, as it continues to struggle to restructure its business.
The Gulf lender said it had reduced net loss for the period by 50 percent, down from $92.1m for the first half of 2009.
GFH reported total income for the period of $25.9m, down from $67.9m in the year-earlier period, following a drop in income from investment banking services.
Total assets declined to $1.4bn as of 30 June 2010, down from $2.7bn in the same period in 2009. Liabilities reduced from $1.8bn to $965m for the period, the bank said.
Financing liabilities were reduced by 37 percent to $412m compared to $652.5m as of 31 December 2009.
“Our half year results demonstrate the progress GFH has made in taking good steps in the implementation its recovery plan. Our focus now will be on strengthening the capital structure of GFH and working towards our new business model,” the bank’s chairman, Esam Yousif Janahi said in a statement.
The bank has been hit hard by a regional property crash and an inability to raise liquidity. In February, GFH struck a last-minute deal to repay $200m of a $300m debt. Last week it managed to secure a three-year arrangement to pay back the remaining $100m, after agreeing a six-month facility.
GFH has also asked Standard & Poor’s to stop coverage of its debt. The ratings agency cut GFH’s long-term rating to CC from CCC- with a negative outlook, blaming weakening liquidity and revenue generation.
Earlier this week, Reuters reported that the bank was seeking to raise its capital for the second time in less than a year.
GFH posted a $728m loss in 2009, although it reduced its first-quarter loss to $7.5m this year due to cost-cutting and lay-offs.For all the latest Bahrain news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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