Press Release
Gulf Finance House successfully secures the backing of its Shareholders at the AGM
Manama, Bahrain, Wednesday 24th March 2010 - Gulf Finance House (GFH) announced today that it has successfully conducted and concluded its Annual General Meeting (AGM) and has secured its shareholders’ support and agreement to the Bank’s strategy to return to profitability.
At the AGM, shareholders were updated on GFH’s activities and financial performance for 2009 in relation to market conditions, the steps it has taken to adapt to it and the direction it is taking to return to profitability and growth. Details on GFH’s capital and liquidity exercise were presented including the successful rights issue, placement of the convertible murabaha with Deutsche Bank, the partial sale of Qinvest, the various cost cutting measures, the spread of its debt obligations and the progress on other non - core asset sales. Shareholders were also updated on GFH’s product pipeline which will be key to the Bank’s return to profitability. Finally shareholders were thanked for their continued support to GFH, its Board and management team.
Addressing the Bank’s shareholders, GFH Chairman Esam Janahi stated:
“2009 was an exceptionally difficult year for all financial institutions around the world including GFH. We thank all our shareholders for their understanding and support. Investor appetite was significantly diminished and continues to be a problem. To position us for a return to profitability we successfully executed a capital and liquidity management plan, and the Board and management decided it was best to clear the balance sheet by booking the non - cash provisions. Despite acknowledging that 2010 will be another challenging year for the banking industry, we have strong reason to believe that the Bank’s prospects are positive.”
“GFH is an important part of the Bahraini and GCC financial landscape and we appreciate the support we have received from our lenders. We also sincerely value the guidance from the CBB to improve our operations,” commented Group CEO, Ted Pretty at the subsequent press conference. “We want to get back to business and have already announced the work we are doing to establish one of the largest Islamic banks in Syria and the reception we have got from the investor community is very encouraging. We believe in the future of Islamic financing activities and we will look to capitalize on these opportunities in the MENA region. We will also purse exits to secure the best interests of our investors,” he added.
Key highlights of the agenda included shareholder approval of the financial statements for the year ended 31 December 2009, a presentation of the Bank’s performance by the Chairman, the re-appointment of the Sharia’a board and the Bank’s auditors (KPMG Fakhro), and finally releasing Board members from any liability.
Ends
About Gulf Finance House
Established in 1999, Bahrain based Gulf Finance House (GFH) is one of the most successful and innovative Islamic investment banks in the Middle East. GFH historically focused on the conception and delivery of high value economic infrastructure projects. The Bank has also offered a diversified product range with a number of venture capital, private equity and asset management initiatives in addition to pioneering a number of Islamic financial institutions.
In addition to its share listings on the Kuwait and Bahraini Stock Exchange’s and the Dubai Financial Market, 2007 witnessed the Bank’s GDR listing on the London Stock Exchange. Over the past year, GFH has evolved its business model with a view to establishing itself as the world’s leading Islamic investment bank. Under this new structure GFH will essentially operate with two primary businesses, GFH Real Estate & Infrastructure and GFH Capital.
The Bank has won numerous local and international awards as a testimony of its commitment to excellence and its pioneering and innovative approach, including “Best Investment Bank 2008″, by Islamic Banking and Finance, “Best Investment Bank” three years running (2005-2007), awarded by Banker Middle East; “Best Islamic Investment Bank” by World Finance 2007; “MENA Investment Bank of the Year 2008″ by Acquisitions Monthly; “Best Investment Bank 2008″, by Islamic Banking and Finance; and “Best Islamic Finance House” at the Banker Middle East Industry Awards 2009.
For further information please contact:
Ahmed Al Derazi
PR-Corporate Communications Department
Tel: +973 17538538 Ext 274
Email:
Website: www.gfh.com