MANAMA – Bahrain-based bank Gulf Finance House (GFH) has registered a profit of $4.7 million for the second quarter compared to a net loss of $11.2 million in 2011 mainly driven by income earned from management fees and restructuring of debt, the bank said in a statement Monday. Net profit for the period ending June 30, 2012 rose to $5.7 million from last year's $0.7 million. Total income for the first half reached $32.6 million, similar to last year, when the bank recorded a total income of $32.8 million. Also the bank's total expenses fell from $32.1 million to $26.8 million, thus registering a 17 per cent drop compared to the same period last year. Commenting on the results, Hisham Alrayes, acting CEO, said the surge in the net profits for the first half was a result of the successful restructuring of some of its facilities, and the income earned from the management fees. "The restructuring was extremely positive for GFH as it allowed us a greater degree of financial flexibility as we continue to focus on accelerating our business growth with the aim of returning to long-term profitable growth, as well as significantly bolstering our asset liability profile," he said. GFH had successfully restructured the $45 million remaining debt on a syndicated Wakala facility worth $100 million during the past six months, he added. In addition, the bank also obtained approval from its sukuk (Islamic bond) holders to restructure its outstanding debt amounting to $110 million. Both debts will mature in 2018 and provide a two-year grace period for the repayment of the principal amounts, Alrayes further said. – SG
