Kuwait's Global Investment House (GIH) swung to a loss in the fourth quarter and said it would take longer to reschedule its debt.
Reuters calculated it had a KWD360.5 million ($1.36 billion) net loss in the fourth quarter versus a KWD29.47m net profit in fourth quarter 2007.
The fourth-quarter net loss was calculated based on a net profit of KWD102.9m in the first nine months.
Kuwait's biggest investment bank defaulted on most of its debt earlier this year. It is one of the most prominent firms in the Gulf state's financial sector to face serious problems.
Global said in a statement released yesterday that losses on investments and loans resulted in a full-year net loss of KWD257.6m compared to a net profit of KWD91.4m in 2007. Global said impairment charges mainly for investments amounted to KWD297.4m in 2008, while an extra KWD22.1m was booked mainly for loans.
The bank said that it had not yet reached an agreement with its roughly 50 creditors to reschedule its debt and revamp its business.
"Global's auditors have not been able to obtain sufficient reliable audit evidence to determine whether the group will be able to reach an agreement to restructure its debt obligations," Global said in a statement.
The company said in December when talks began that it would only be a few months before a deal was reached. The company said yesterday that it remained confident that "a sustainable, long term financing solution is likely to be achieved in the coming months".
Shareholders' equity was KWD303.5m at the end of December compared with KWD323m at the end of 2007. The bank said it will not pay a dividend for the year 2008.
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