Net profits of Gulf Finance House boom
Continuing the growth in earnings recorded in the first two quarters of 2004, the Bahrain-based Gulf Finance House, one of the leading providers of Islamic investment banking services in the GCC, Sunday delivered strong third quarter results, which saw its year on year net profit rising 310 per cent to US $47.1 million for the period ending September 30, 2004.
During the first nine months of the year GFH also increased its revenues by 216 per cent to US$71.8 million, compared to US$22.7 million during the same period last year.
Announcing the results in a special Ramadan Ghabgah event for investors and media in Kuwait, Dr. Fuad Al-Omar, Chairman, GFH, said: “The extremely strong third quarter results are a testimony to the soundness of the bank’s business model, professional management and investment strategy on the one hand, and its commitment to consistently reward its shareholders and investors with higher returns, on the other.”
Dr. Al-Omar further added: “GFH has had a very successful third quarter with net profit during the three months accelerating to US$18.6 million, an increase of 43 per cent when compared to the previous quarter.”
Dr. Al-Omar further commented: “Adding strength to these results is the fact that most of the bank’s higher third quarter earnings have primarily originated from fees generated from the US$137 million Al Areen Desert Spa and Resort project, which is now fully subscribed; a substantial new infrastructure project which is set to be formally launched in the UAE soon; and from the intra-regional aviation subsidiary, MenaJet, which started its operations in August 2004 in Lebanon.
“We are confident that our professional and innovative banking services will continue to bring in steady stream of revenues throughout the year and beyond. Our move to focus on major regional infrastructure projects will continue to be our strategy in order to deliver sustained growth for the bank’s shareholders and investors,” Dr. Al-Omar said.
Commenting on the results, Mr. Esam Janahi, Chief Executive Officer, GFH said: “The results reflect the strength and acumen of our management team and their skills in creating value from their clients.
“At GFH, we constantly monitor opportunities which could potentially reward our shareholders and investors and this has led us to establish our presence in the regional markets through partnering in landmark projects. We have also substantially invested in new offices and professional staff in line with the current and anticipated growth and we will continue to explore innovative ways to serve our clients,” he said.
“Our operating expenses in the third quarter rose 120 per cent to US$24.7 million compared to US$11.2 million during the first nine months in 2003, but this rise was offset by the rapid rise in revenue and net profit,” Mr. Janahi said. The expenses during the third quarter were also stable at US$8.4 million which was the same as in the second quarter.