Kuwait's Global posts $70.2m net loss in Q2

H1 net loss stands at KD34.4m versus a net loss of KD98.6m in year-earlier period.
Kuwait's Global posts $70.2m net loss in Q2
TURBULENT TIMES: Global Investment House Q2 loss exceeds their earlier estimate of $48.66mn. (Getty Images)
By Reuters
Thu 12 Aug 2010 05:10 PM

Kuwait's Global Investment House reported a loss of $70.24 million in the second quarter on Thursday due to "turbulence" in the region's markets.

The firm made a loss of $119.56 million in the first half of the year, compared with a loss of $342.71 million in the year earlier period, Global said in a statement on Thursday.

The investment bank did not provide quarterly figures. Global made a net loss of $49.35 million in the first quarter.

Analysts at Shuaa Capital had expected Global to report a loss of $48.66 million in the second quarter of 2010 according to a Reuters survey.

In a separate statement, Global said: "The performance of Global's principal investment book continued to be negatively impacted by the market turbulence in GCC and the rest of the MENA markets where Global's principal investments are focused." Global added that the firm remained confident about the future prospects of these equity markets.

In December, Global reached a deal with creditors to reschedule $1.7 billion in debt, and entered into new three year facilities with each of its 53 lending banks.

The company said on Thursday that "total principal repayments to the lending banks reached $78.9 million representing 46 percent of the total payments due by 10 December 2010."

Global's Managing Director Maha al Ghunaim, said she remained pleased with the success of the firm's strategy of focusing efforts on fee generating lines of business, namely asset management, investment banking and brokerage.

The results were announced after trading hours on Kuwait's bourse. (Reuters)

For all the latest Kuwait 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.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.