IslamicFinance.de

Bahrain-based Gulf Finance House (GFH) expects to complete a proposed capital reduction by the end of the second quarter. Under the proposal, which still requires regulatory approval, GFH will reduce the nominal value of its shares by 13.8 per cent to $0.265 per share from $0.3075. As a result, paid-up capital will be cut to $837 million from $972m. The cash reduction will not involve any cash transfer and will not change the bank's net equity. However, under accountancy rules, it will help remove accumulated losses from GFH's balance sheet.