GFH announces second quarter results

Gulf Finance House (GFH), the Middle Eastern Islamic investment bank, has declared its results for the second financial quarter of the year.

The bank has recorded a net loss for the second three month period of $54 million ($92 million loss for the year to date), which compares to a profit of $104 million made during the second quarter of 2008 ($220 million for 2008 year to date).

The sources said that the results are due in part to the continued challenges faced in regional placement activity with total income of $18 million for the second quarter ($68 million year to date) as against $199 million in the second quarter of 2008 ($386 million for 2008 year to date) and provisions taken against balance sheet assets.

Throughout the second quarter, the lender focused not only on the origination of newprojects but increasingly on the management and oversight of existing initiatives.

In addition, the management continued its focus on careful cost controls across the organisation with an operating cost reduction of 20% during the second quarter of 2009 compared to the first three months of the year and a reduction of 60 per cent on the second quarter of 2008.