Bahrain National Holding Company (Trading Code: BNH) announced its financial results for the fourth quarter and for the year ended 31st December 2019.
For the fourth quarter ended 31st December 2019, the Group achieved a net profit attributable to the shareholders of BD251 thousand compared to BD424 thousand during the fourth quarter of the previous year, a decrease of 41%. The earnings per share for the fourth quarter was 2.3 fils compared to earnings per share of 3.8 fils during the same period of 2018. The total comprehensive income attributable to the shareholders for the fourth quarter ended 31st December 2019 grew by 392% to BD870 thousand, compared to total comprehensive income of BD177 thousand during same period of 2018. The Group achieved net earned premiums in the fourth quarter of BD4.31 million, compared to BD4.37 million in the fourth quarter of last year, a decrease of 1%. The Group reported net underwriting loss of BD168 thousand during the fourth quarter, compared to underwriting profit of BD268 thousand in the fourth quarter. The drop in the net profit for the fourth quarter of 2019 relates primarily to higher claims incurred, which was partially offset by higher investment income.
For the year ended 31st December 2019, the Group achieved a net profit attributable to the shareholders of BD4.79 million, compared to BD3.28 million during the last year, an increase of 46%. The net profit for the year ended 31st December 2019 was BD5.03 million, compared to BD3.49 million in last year, an increase of 44%. As a result, earnings per share was 42.6 fils compared to 29.4 fils for the year of 2018. The total comprehensive income attributable to the shareholders for the year ended 31st December 2019 grew to BD6.71 million, compared to BD2.62 million during the previous period of last year, an increase of 156%. Gross premiums grew by 1% to BD33.80 million compared to BD33.58 million in 2018. Net earned premium increased by 5% to BD17.49 million, compared to BD16.70 million of last year. Net underwriting profits showed a marked improvement to BD2.06 million during the year 2019, compared to BD724 thousand in last year, an increase of 184%. The net investment income after impairment losses grew by 33% to BD3.01 million compared to BD2.27 million in 2018.
The increase in the net profit for the year of 2019 in comparison to the last year can be primarily attributed to higher net earned premiums, lower net claims incurred and strong growth in investment income.
The total shareholders’ equity (excluding non-controlling interest) as at the end of year 2019 was BD53.84 million compared to BD48.85 million as at the end of the previous year, an increase of 10%.
The total assets reached BD105.83 million compared to BD94.38 as at the end of previous year, with an increase of 12%.
In view of the strong performance in 2019, and after taking into consideration the group’s future requirements, the board of directors are pleased to recommend an annual cash dividend of 22% compared to 15% in 2018.
Mr. Farouk Almoayyed, Chairman of Bahrain National Holding, commented: “I am pleased to report to our shareholders that the Group has recorded the highest net profit for the past ten years in 2019. This performance is even more creditable, as it has been achieved against a backdrop of rising costs as well as challenging and highly competitive insurance market conditions. Investment market conditions were positive in 2019, giving us the opportunity to grow portfolio income and value.”
Mr. Sameer AlWazzan, Chief Executive of BNH, commented: “It is always rewarding to see the results of the continuous efforts of our employees over the past few years, reflecting positively on the profits of the group. We take special pride in our local knowledge and strong presence in both corporate and retail markets. Our primary focus in 2020 will be on the phased roll out of our core IT system. This will be critical to enhancing our services and digital offerings to ensure the continued loyalty and support of our customers.”
The audited consolidated financial statements for the year ended 31st December 2019 and the press release are available on our website www.bnhgroup.com and the Bahrain Bourse’s website.