Losses on principal investments increase as difficult market conditions persist in Q3
Kuwait's Global Investment House saw its third-quarter net loss widen as the bank continued to battle difficult market conditions, according to a statement on Wednesday.
Global posted a net loss of KD15.46m ($55.92m) for the three months to September 30, according to Reuters calculations, up from KD11.8m net loss in the corresponding period of 2010.
Losses on principal investments increased by KD3.3m in the quarter, to KD31.5m for the first nine months of the year, which the company blamed in the statement on fair valuation adjustments on equity assets and portfolio cost of funding.
This quarterly loss wiped out the KD3.3m of operating income generated by it asset management, investment banking and brokerage operations.
Global said in September that it was asking lenders for a delay to principal repayments on debt due in December to allow for a renegotiation of the $1.7bn debt restructuring plan it agreed in 2009.
At the end of September, Global had repaid $232.8m of the total debt amount, the bank said in the results statement.
Holders of a KD45m bond due to mature in April 2012 will be asked to delay repayment until June at a meeting on December 5, Global said on Monday.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.