Bahrain's GFH Q3 net loss widens to $115.1m

Quarterly loss nearly quadruples; Q3 results hit by impairment allowances of $81.5m
Bahrain's GFH Q3 net loss widens to $115.1m
FRESH CONCERNS: GFH reported its quarterly loss nearly quadrupled
By Reuters
Wed 27 Oct 2010 11:01 AM

Bahrain's Gulf Finance House

said its third-quarter net loss

nearly quadrupled as the investment firm set aside more money to

meet investment and loan losses amid shrinking revenues.

The company said net loss in the quarter ended September 30 was

$115.1m, compared with a net loss of $29.3m in the

year-earlier quarter.

Impairment allowances for the quarter were $81.5m,

GFH said, while total income for the quarter shrunk to $633,000

compared with $3.2m in the same period last year.

For the nine-month period ended September 30, GFH reported a

loss of $162.8m, compared with $121.4m last year.

The Islamic investment firm and other Bahraini investment

houses have struggled to restart revenue growth, after a 2008

regional property crash weakened their business model of earning

fees on investor money raised for private equity and property

projects.

GFH, which has restructured two loans worth a total of about

$400m this year, said in an investor presentation it plans to either restructure or sell down assets to

repay $90m in term debt next year.

It plans to slash its paid-up capital by about 75 percent to

absorb its losses and raise up to $500m in additional

funds through issuing a murabaha, an equity-linked Islamic

money-market instrument.

The Kuwait-listed shares in GFH have lost about 57 percent

of its value since the beginning of the year.

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