Bahrain National Holding announces its financial results for the first half year ended 30th June 2023
Manama: Bahrain National Holding (Trading Code: BNH) announced its financial results for the second quarter and for the first half year ended 30th June 2023.
For the second quarter ended 30th June 2023, Bahrain National Holding (BNH) achieved a net profit attributable to the shareholders of BD2.42 million, a 45% growth from the net profit attributable to shareholders of BD1.66 million achieved during the second quarter of the previous year. Earnings per share for the second quarter ended 30th June 2023 increased to 20 fils compared to 14 fils in the second quarter of the previous year. The total comprehensive income attributable to the shareholders for the second quarter of 2023 was BD4.54 million, compared to a loss of BD 2.15 million for the second quarter of the previous year.
For the half year ended 30th June 2023, BNH achieved a net profit attributable to the shareholders of BD4.16 million, a 50% decrease from the attributable net profit of BD8.29 million achieved during the first half of 2022 due to an extraordinary non-recurring gain of BD5.87 million reported during the first quarter of 2022. Earnings per share for half year ended 30th June 2023 decreased to 35 fils compared to 70 fils in the first half of 2022. The total comprehensive income attributable to the shareholders for the first half of 2023 increased to BD6.09 million, compared to BD3.55 million during the first half year of 2022, an increase of 72%.
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 72% compared to the first half year 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 half year ended 30th June 2023 increased by 3% to BD67.83 million compared to BD65.91 million as at the end of 2022. The total assets increased by 0.4% to BD111.99 million compared to BD111.49 million at the end of the previous year.
BNH reported insurance revenue of BD20.45 million for the half year ended 30th June 2023, compared to BD21.59 million during the first half of 2022, a decrease of 5%. The insurance service result for the half year ended 30th June 2023 decreased by 5% to BD3.51 million, compared to BD3.68 million during the first half of 2022. BNH reported an investment return of BD1.70 million during the half year ended 30th June 2023, compared to a loss of BD132 thousand for the first half of 2022.
Mr. Farooq Almoayyed, Chairman of Bahrain National Holding, commented: “We are pleased with BNH’s performance in the first half of 2023. Our insurance subsidiaries were able to maintain their insurance service results. Investment performance was 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 A. 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 72%. We continue to execute initiatives aimed at enhancing the performance of our portfolio companies. We are also refining our investment portfolio, building a structured framework for long-term investments to drive BNH’s future growth.”
