Dubai: Bahrain investment bank Gulf Finance house announced that it had inched back into the black in 2011 after making a massive $349 million loss in 2010.
Net profit for 2011 clocked in at $381,000 for last year, while operating profit before provisions were $9 million compared to a loss of $93 million in 2010, signaling a restart in GFH income.
The bank saw a 37% reduction in operating costs during 2011, and during the fourth quarter made a net loss of $ 4 million as compared to a net loss of $ 187 million in 2010.
GFH blamed the loss on $8 million of impairment provisions.
"Global, regional and national economies were all subjected to significant stress factors during 2011, which impacted several sectors significantly, not least of which was the financial sector," said Esam Janahi, executive chairman of GFH.
"Our strategy was put in place to realize long term benefits for our shareholders, our investors and our employees. While this meant that we had to take some difficult decisions in the short term, and indeed experience a string of negative results, we have now returned to profitability as an institution, which was the target we were aiming for."
