Manama: Bahrain National Holding (Trading Code: BNH) announced its financial results for the third quarter and for the nine-months period ended 30th September 2023.
For the third quarter ended 30th September 2023, the Group achieved a net profit attributable to the shareholders of BD1.28 million, compared to BD2.06 million during the third quarter of the previous year, a decrease of 38%. Insurance Revenue and Insurance Service Result grew by 4% and 3% respectively, however, the drop in net profit is primarily attributable to lower investment income, which decreased from BD1.36 million to BD0.66 million, a 51% 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 30th September 2023 was BD0.76 million, compared to BD2.18 million during the same period of previous year, a decrease of 65%.
For the nine-month period ended 30th September 2023, the Group achieved a net profit attributable to the shareholders of BD5.45 million, compared to BD10.35 million in the correspondence period, a decrease of 47% due to an extraordinary non-recurring gain of BD5.87 million 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 30th September 2023 was BD6.85 million, compared to BD5.72 million during the same period of previous year, an increase of 20%.
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 available-for-sale carried at fair value, effective 12th January 2022. Excluding the effect of this non-recurring reclassification gain, BNH achieved a growth of 22% 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 30th September 2023 increased by 4% to BD68.59 million compared to BD65.91 million as at the end of the previous year. The total assets reached BD110.89 million compared to BD111.49 million at the end of previous year, with a decrease of 1%.
BNH reported insurance revenue of BD32.28 million during the nine-month period of 2023, compared to BD32.95 million, a decrease of 2%. The insurance service result for the nine-month period of 2023 decreased by 3% to BD4.86 million, compared to BD4.99 million for the same period of last year. BNH reported an investment return of BD2.37 million during the nine-month period of 2023, compared to BD1.23 million for the same period of 2022, an increase of 92%. The Group's share of profits of equity accounted investees for the nine-month period increased by 23% to BD1.11 million, compared to BD0.90 million in the similar period of the previous year.
Mr. Farooq Almoayyed, Chairman of Bahrain National Holding, commented: “We are delighted with BNH’s continued strong performance for the 9 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.”
Mr. 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 22%. 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.”
Reviewed financial statements for the nine-month period ended 30 September 2023 and the press release are available on our website www.bnhgroup.com and the Bahrain Bourse’s website.
