Bahrain National Holding achieves 22p% growth excluding non-recurring gain

PHOTO

Bahrain National Holding (BNH) announced its financial results for the third quarter and for the nine-month period ended September 30, 2023.

For the third quarter ended September 30, 2023, the group achieved a net profit attributable to the shareholders of BD1.28 million, compared to BD2.06m during the third quarter of the previous year, a decrease of 38 per cent.

Insurance revenue and insurance service result grew by 4pc and 3pc respectively, however, the drop in net profit is primarily attributable to lower investment income, which decreased from BD1.36m to BD0.66m, a 51pc reduction during the period.

Investment profits in the third quarter of the previous year were higher, largely due to market recovery from the sharp falls in the first half of the year.

Earnings per share during the third quarter were 11 fils compared to 17 fils in the third quarter of the previous year.

The total comprehensive income attributable to the shareholders for the third quarter ended September 30, 2023 was BD0.76m, compared to BD2.18m during the same period of previous year, a decrease of 65pc.

For the nine-month period ended September 30, 2023, the group achieved a net profit attributable to the shareholders of BD5.45m, compared to BD10.35m in the corresponding period, a decrease of 47pc due to an extraordinary non-recurring gain of BD5.87m reported during the first quarter of 2022.

Earnings per share decreased to 46 fils compared to 87 fils for the nine-month period of 2022.

The total comprehensive income attributable to the shareholders for the nine-month period ended September 30, 2023 was BD6.85m, compared to BD5.72m during the same period of previous year, an increase of 20pc.

The extraordinary non-recurring gain of BD5.87m reported during the first quarter of 2022 was mainly due to the reclassification of an equity accounted investee, Arabian Shield Co-operative Insurance Company (ASCIC), based in Saudi Arabia.

The investment in ASCIC was reclassified as available-for-sale carried at fair value, effective January 12, 2022.

Excluding the effect of this non-recurring reclassification gain, BNH achieved a growth of 22pc compared to the same period of 2022.

ASCIC has been subsequently reclassified to fair value through other comprehensive income, in line with the IFRS 9 accounting standards.

The total shareholders’ equity (excluding non-controlling interest) as at the nine-month period ended September 30, 2023 increased by 4pc to BD68.59m compared to BD65.91m as at the end of the previous year.

The total assets reached BD110.89m compared to BD111.49m at the end of previous year, with a decrease of 1pc.

BNH reported insurance revenue of BD32.28m during the nine-month period of 2023, compared to BD32.95m, a decrease of 2pc.

The insurance service result for the nine-month period of 2023 decreased by 3pc to BD4.86m, compared to BD4.99m for the same period of last year.

BNH reported an investment return of BD2.37m during the nine-month period of 2023, compared to BD1.23m for the same period of 2022, an increase of 92pc.

The group’s share of profits of equity accounted investees for the nine-month period increased by 23pc to BD1.11m, compared to BD0.90m in the similar period of the previous year.

Farooq Almoayyed, chairman of BNH, commented: “We are delighted with BNH’s continued strong performance for the nine months of 2023. Investment performance continues to be strong both in our marketable securities and across our portfolio companies. Given BNH’s solid liquidity coupled with a climate of rising yields, we are uniquely placed to seize emerging opportunities.”

Raed Fakhri, group chief executive of BNH, commented: “Excluding the non-recurring reclassification gain from the first half of 2022, BNH achieved a notable growth of 22pc. We continue to manage our balance sheet effectively, increasing our shareholder equity through the implementation of initiatives aimed at rebalancing our portfolio and enhancing the performance of our portfolio companies.”