Bahrain-based Islamic investment bank Gulf Finance House (GFH) yesterday reported a net profit of $15.6 million for the first nine months of this year, compared with $1m in the corresponding period last year.
Total income was $121.1m versus $30.5m for first nine months of the previous year.
Investment banking income for the period increased an impressive 75 per cent year-on-year. Results for the third quarter also showed significant improvement with profits of $5m, compared with a net loss of $3.2m in the same period last year.
Total income for the third quarter was up a sharp 532pc reaching $32.9m versus $5.2m in the prior year period. Income during the quarter was primarily generated from placement fees for the bank's investment products as well as from the settlement of liabilities for the bank. Operating expenses for the nine-month period were $95.5m. Investment operations expenses were $35.3m, compared with $27.45m during the first nine months of 2013.
"We are pleased to announce another period of growth profitability and continued progress at the bank," chief executive Hisham Alrayes said. "It underscores that our strategy is working well and that the measures we have taken and investments made are paying off.
The successful placement of the new investments during the quarter demonstrates the investors trust and renewed interest in GFH investment products," he added. "We have just announced an exit from our prime London property investment and subject to conclusion of certain pending requirements, we expect to deliver a 21pc return on investment to our investors in a short nine-month period," he said. "These efforts continue to bolster our financial position and results and will see us end this year on a strong position," he added.