KUWAIT: Kuwait's Global Investment House, the country's biggest investment bank, yesterday said it made a first quarter net loss of 69.5 million Kuwaiti dinars ($239.9m), mainly on investment losses.
Global, which defaulted on most of its debt earlier this year, is among the most prominent firms in the GCC state's financial sector to face serious problems amid tight credit conditions.
The loss is a relative improvement after a 360.5m dinar it posted in the fourth quarter last year. Global made net profit of 34.7m dinars in the first quarter of last year, it said.
Global said impairment charges from investments amounted to 21m dinars in the first quarter, while an extra 27.9m dinars were losses by affiliates mainly on write downs in valuation of assets in the real estate and financial sectors.
"The first quarter results continued to be impacted by global and regional market turbulence and material decline in overall investment and investment banking activities in the region," the bank said.
The bank said that it had not yet reached an agreement with its roughly 50 creditors to reschedule its debt and revamp its business.
"Although much work remains to complete the restructuring, Global remains confident that by working in cooperation with the lending group, a sustainable, long-term financing solution for the company is likely to be achieved in the coming months," it said.