Gulf Finance House has posted a profit, but don’t expect many new jobs
After a prolonged period of retraction for Bahraini investment bank Gulf Finance House (GFH), there appears to be some reasons for optimism for its employees, which have endured radical restructuring over the last few years.
GFH has just released its half-yearly results and has posted a profit of $4.7m. This isn’t huge, but compared to a year earlier when it slumped to an $11.2m loss, this can be seen as a positive development.
Much of this can be put down the successful restructuring of its debt earlier this year, which was dragging down profitability. It restructured the $45m of its remaining debt on a $100m syndicated Wakala facility earlier this year, and was also able to gain a two-year grace period for its outstanding $110m Sukuk.
Nonetheless, it’s been a difficult period for employees of GFH. At its peak, the firm employed over 300 people, a figure that has shrunk to just 55 today. Expenses are still being clamped down on – the fell to $26.8m, down 17% from the first half of 2011.
While it’s unlikely that GFH will present many employment opportunities any time soon, it has been talking up tentative expansion – focusing on property projects and potential acquisitions rather than income from its investment bank.
