GULF Finance House (GFH), the Bahrain-based Islamic investment bank, reported a net profit of $4.2 million in the first half of 2013 compared to $5.7 million in the corresponding half-year period in 2012. Net profit for the second quarter $2.7 million compared to $4.7 million for the second quarter of 2012. Total income for the second quarter was $13.4 million compared to a total income of $19.7 million for the second quarter of 2012. Income was primarily generated from management fees from funds under management, investment income and recoveries. Operating costs for the half year period reduced by 27 percent to $19.6 million compared to $26.9 million for the prior year period, underlining ongoing efforts in the streamlining of operations and achieving greater efficiencies across the business. Hisham Al Rayes, acting CEO of GFH, said the "… another period of improving performance and profitability… reflects our commitment to maintaining positive results. We continue to focus on the strengthening of the balance sheet and the realignment of projects for successful exits, which is allowing us today to establish the bank's credit rating in the market. We believe that this will also further enhance market confidence in the bank and allow for better business making in the future.” “Furthermore, during the quarter we focused on building platforms to extract value from our existing assets. In this regard, we secured a number of strategic investors alongside GFH in Leeds United FC. We also saw progress on a number of our development projects and expect to see positive results later this year in particular in Bahrain and Tunis. In addition to these activities, we undertook due diligence on a number of opportunities during the past quarter that we expect will offer the bank and its clients secured income and low investment risk. We are confident that a stronger future is ahead and are determined to deliver higher returns for our investors and shareholders as we go forward.” – SG
