Bahrain's Gulf Finance House (GFH) saw a 268 per cent surge in net profits to $15.4 million, compared to $4.2 million during the first quarter of last year.
The bank, whose shares were recently listed on the Bahrain and Kuwait stock exchanges, said the results were driven by a diversified investment strategy which revolved around an increased emphasis on larger real estate-based investments, in both the regional and international markets.
According to Dr. Fuad Al Omar, GFH chairman, "The momentum that GFH has built up has boosted earnings. 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."
In the course of the quarter, the bank earned investment banking fees from the Al Areen Desert Spa and Resort project based in Bahrain, the $600 million leisure, entertainment and health tourism project launched in January.
Similarly, income from the upcoming $1.3 billion global financial and business city, Bahrain Financial Harbour, the construction of which has already started, also contributed.
"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," said Esam Janahi, chief executive officer. (menareport.com)
© 2004 Mena Report (www.menareport.com)
