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
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
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
The Kuwait-listed shares in GFH have lost about 57 percent
of its value since the beginning of the year.For all the latest banking and finance 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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