MANAMA: Bahrain National Holding Company (Trading Code: BNH) announced its financial results for the fourth quarter and for the year ended 31st December 2023.
For the fourth quarter ended 31st December 2023, the Group achieved a net profit attributable to the shareholders of BD1.48 million compared to a net profit of BD0.89 million during the fourth quarter of the previous year, an increase of 66%. The earnings per share for the fourth quarter increased to 12 fils compared to 7 fils during the same period of 2022. The total comprehensive income attributable to the shareholders for the fourth quarter ended 31st December 2023 was BD1.27 million, compared to total comprehensive loss attributable to the shareholders of BD1.79 million during the same period of 2022.
For the year ended 31st December 2023, the Group achieved a net profit attributable to the shareholders of BD6.93 million, compared to BD11.24 million during the last year, a decrease of 38% due to an extraordinary non-recurring gain of BD5.87 million reported during the first quarter of 2022. Excluding the effect of this non-recurring reclassification gain, BNH achieved a growth of 29% compared to the last year of 2022. Earnings per share decreased to 58 fils compared to 94 fils for the year 2022. The total comprehensive income attributable to the shareholders for the year ended 31st December 2023 increased to BD8.12 million, compared to BD3.93 million during the last year of 2022, an increase of 107%.
The extraordinary non-recurring gain of BD5.87 million 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 the Kingdom of Saudi Arabia. The investment in ASCIC was reclassified as financial investment carried at fair value, effective 12th January 2022.
The total shareholders' equity (excluding non-controlling interest) at the end of the year 2023 increased to BD70.05 million compared to BD66.08 million as at the end of the previous year, an increase of 6%. The total assets reached BD111.02 million compared to BD111.49 at the end of the last year.
In view of the strong performance in 2023, and after taking into consideration the BNH's future capital requirements, the Board of Directors is pleased to recommend an annual cash dividend of 35% and equivalent to 35 fils per share amounting to BD4.17 million, compared to the approved dividend of 35% and equivalent to 35 fils per share in 2022 amounting to BD4.17 million, subject to shareholders’ approval at the Annual General Meeting.
Mr. Farouk Almoayyed, Chairman of Bahrain National Holding, commented: " We are very pleased with BNH’s 2023 record performance. Our portfolio companies continued to standout as leaders in their respective industries as demonstrated by our consolidated results. We look forward to 2024 where we anticipate to further grow our portfolio and explore new opportunities in promising sectors.
Mr. Raed Fakhri, Group Chief Executive of BNH, commented, saying: “Excluding the non-recurring reclassification gain from the first quarter of 2022, BNH achieved a significant growth of 29%. This was achieved through prudent capital management and the implementation of initiatives aimed at enhancing the performance of our portfolio.”
“I thank the Board of Directors for their support and extend my thanks to the BNH team and the teams of our portfolio companies for their dedication and achievements throughout the year. I am looking forward to maintaining this momentum and exploring new opportunities in the year 2024” he added.
