By Staff writer
Islamic investment firm announces full-year net profit of $17m after reporting $18m losses in 2013
Bahrain-based Gulf Finance House on Sunday announced a full-year net profit of $17 million compared to a net loss of $18 million for the previous year.
Total consolidated income for 2014 was $160 million compared to $13.5 million in 2013, the Islamic investment firm said in a statement.
Excluding income of $94.3 million from non-banking operations, this reflected a 387 percent rise in investment banking income, compared with the previous year. This was the result of a significant increase in placements and recoveries made during the year, GFH said.
Operating profit before provisions for the year was $27.6 million compared to a loss of $14.6 million in 2013, it added.
In Q4, net profits stood at $1.4 million compared with a loss of $18.7 million in 2013. This was mainly attributed to the successful placement of the group's investments in two key residential transactions during the last quarter of the year, although this was affected by equity market crash in fourth quarter by $6.3 million.
Dr Ahmed Al-Mutawa, chairman of GFH, said: "We have taken steps in 2014 to recapitalise our balance sheet, strengthen our structure and emerge as a financial group.
"We embarked upon a new strategy to create a more stable financial position by increasing our capital and enhancing the balance sheet, while focusing on acquisitions to strengthen the financial position of the group and our co-investors through steady streams of income and opportunities for strong upside potential at exit."
Hisham Alrayes, CEO of GFH, added: “We are extremely pleased that 2014 was a year of returning back strongly to investment placement, through attracting and placement of $86m in a number of attractive investment transactions.
"We continued to work hard to enhance the potential of our current investments and seek out new opportunities for growth of the group and our co-investors."
He said 2015 is expected to be an important year for GFH as the group looks forward to concluding a number of acquisitions to enhance the balance sheet.
In November, Gulf Finance House said it completed a capital reduction plan, a move that helps the firm to cut accumulated losses.
It had received approval from the Bahraini authorities for the step, which reduces the nominal value of its shares by 13.8 percent to $0.265 per share from $0.3075, it said. As a result, paid-up capital had been reduced to $837.9 million from $972.3 million.