Bahrain National Holding (Trading Code: BNH) announced its financial results for the second quarter and for the first half year ended 30th June 2022.
For the second quarter ended 30th June 2022, the Group achieved a net loss attributable to the shareholders of BD2.13 million, compared to a net profit of BD1.26 million during the second quarter of the previous year. However, this net loss for the second quarter 2022 was attributable to an impairment loss of BD4.46 million on an available-for-sale investment. This investment was reclassified from an equity accounted investee. An extraordinary non-recurring gain, amounting to BD5.87 million was booked in the first quarter of 2022, on reclassification of an equity accounted investee to available-for-sale investment. The Net profit attributable to the shareholders for the second quarter June 30th 2022, excluding the effects of the above reclassification and the subsequent provision is BD2.33 million, a growth of 85% over the second quarter of 2021. Loss per share during the second quarter was 18.0 Fils compared to earnings per share of 11.2 Fils in the second quarter of the previous year. The total comprehensive income attributable to the shareholders for the second quarter of 2022 was a loss of BD3.15 million, compared to an income of BD2.39 million for the previous period of last year.
For the half year ended 30th June 2022, the Group achieved a record net profit attributable to the shareholders of BD5.64 million, compared to BD3.14 million during the half year of 2021, an increase of 80%. As a result, earnings per share increased to 48.9 Fils compared to 27.9 Fils for the half year of 2021. The total comprehensive income attributable to the shareholders for the first half year of 2022 was BD2.71 million, compared to BD3.77 million during the first half year of 2021, a decrease of 28%.
The increase in the net profit for the first half 2022 in comparison to the first half 2021 was attributable to an extraordinary non-recurring gain on reclassification of an equity accounted investee to available-for-sale investment, amounting to BD5.87 million, however this gain was partially offset by impairment loss of BD4.46 million on the same investment during the second quarter of 2022. This, along with the significant growth in underwriting profits and investment income led to the increase of 80% in the net profit. The Net profit attributable to the shareholders for the first half excluding the effects of the above reclassification and the subsequent provision is BD4.23 million, a growth of 35% over the first half of 2021.
The shareholders’ equity (excluding non-controlling interest) as at the June 30th, 2022, was BD64.11 million compared to BD62.22 million as at the end of last year, an increase of 3%.
Total assets increased to BD121.73 million compared to BD119.28 million at the end of the previous year, an increase of 2%.
The gross insurance premiums for the second quarter of 2022 were flat at BD9.85 million whereas the net earned premiums increased by 5% to BD4.61 million, compared to BD4.38 million in the second quarter of last year. The Group reported net underwriting profit of BD1.36 million during the second quarter, compared to BD0.97 million in the second quarter of the previous year, an increase of 40%. Net investment income grew by 173% to BD1.48 million during the second quarter, compared to BD0.54 million in the second quarter of the previous year.
The Gross insurance premiums grew by 5% to BD21.59 million during the first half of 2022 compared to BD20.52 million for the same period of last year. Net earned premiums increased by 6% to BD9.28 million, compared to BD8.78 million for the same period of last year. Net underwriting profits increased to BD2.36 million for the first half year of 2022, compared to BD2.05 million for the same period last year, an increase of 15%. The net investment income grew by 67% to BD2.64 million compared to BD1.58 million for the same period of 2021.
Mr. Farooq Almoayyed, Chairman of Bahrain National Holding, commented: “We are pleased with the investment results achieved, as it reflects the clear vision illustrated by the Board of Directors to promote the provision of distinguished services and achieve better financial results."
Mr. Sameer AlWazzan, Group Chief Executive of BNH, commented: “The Group updated its core systems to keep pace with changes and to use the advanced technology to assess the risks and its technical performance. The dedicated team for transformation and application of the international accounting standards, IFRS 9 and IFRS 17, is working according to the plan and is now in the final implementation stage of the systems and comparisons. Moreover, the Group’s insurance subsidiaries provided new insurance solutions for SMEs to help them grow and stabilize their positions in the market. The Group has also continued on developing its staff through specialized courses to raise the level of competencies and refine the skills of employees, and we are confident that the Group will continue its endeavor to achieve the best services for its customers and shareholders.”
The reviewed mid-year consolidated financial statements and the press release are available on our website www.bnhgroup.com and the Bahrain Bourse’s website.
