THE Bahrain-based Islamic investment bank, Gulf Finance House (GFH) yesterday announced good Q1 results with net profit rising by 268 per cent to $15.4 million, as compared with $4.2 million during the same period last year. In the meantime, the bank’s net worth doubled to $200 million with buoyant first quarter earnings and an increase in paid-up capital
Announcing the results here yesterday, senior officials of the bank, which recently listed its shares on the Bahrain and Kuwait stock markets, said that the excellent Q1 results were driven by a diversified investment strategy, which saw an increased focus towards larger real-estate based investments, both in the regional and international markets.
The Chairman of GFH, Dr Fuad Al Omar, said: “The results are an undoubted vindication of the successful strategy that the bank has implemented, which is primarily aimed at pursuing investment opportunities that provide high yields to investors in an increasingly value-driven business environment. The momentum that GFH has built up has boosted earnings. As a result the net profit of the bank in the first quarter of 2004 is close to the $17 million full-year results of 2003,” he added.
“The increase in the bank’s paid-up capital to $135 million, coupled with the sharp rise in retained earnings during the first quarter, has helped the bank to double its net worth to over $200 million,” he said.
“Over the last four years GFH has been successful in enhancing the value it delivers to its shareholders. Earlier this year, with a view to increasing our shareholder base across the Gulf, we listed on the Kuwait and Bahrain stock markets, a move that has met with tremendous investor response in the region,” he added.
Commenting on the Q1 results, GFH’s Chief Executive Officer Esam Janahi, said that since its inception four years ago, GFH has acquired a strong reputation for structuring unique and innovative investment opportunities in various segments of the regional and international real-estate markets.
During the quarter, the bank earned investment banking fees from the Al Areen Desert Spa and Resort project – the $600 million leisure, entertainment and health tourism project which was launched in January 2004. Similarly, income from the upcoming $1.3 billion global financial and business city, Bahrain Financial Harbour (BFH), the construction of which has already started, also contributed to our positive Q1 performance.
“We are also increasing our focus on the real-estate markets of Kuwait, the UAE and Oman. We have started new ventures such as the Gulf Development Real Estate Company in Kuwait and we have taken equity stakes in existing companies elsewhere,” he said.
Janahi said that in keeping with its philosophy of providing investors with unique and innovative investment opportunities, GFH was active in seeking investment opportunities in other key overseas markets.
“In fact, earlier in March, we unveiled a new fund with a targeted capital of $50 million, which will invest in real estate development projects in the Western Costa del Sol, a popular European investment destination which includes the resort town of Marbella. Our entry into the Spanish real-estate development sector follows the successful launch and closure of similar investment vehicles in the markets of the United Kingdom and France,” Janahi added.
The bank launched Gulf Atlantic Real Estate in 2002 to invest in a diversified mix of income generating commercial properties in  the UK. Launched the following year, Gulf Atlantic FZ-LLC invests in a mix of income earning properties in the Paris region of France.
Established only four years ago, GFH has rapidly earned a reputation as a leading-edge player in Islamic investment banking. GFH now has a paid-up capital of $135 million and authorised capital of $300 million.
Last update on: 5-5-2004