Bahrain National Holding (BNH) has announced its financial results for the third quarter and nine months to 30 September 2023.
In the third quarter ended September 30, 2023, the Group achieved a net profit attributable to shareholders of BD 1.28 million. Net profit for the third quarter of the same period last year was BD 2.06 million, a decrease of 38%.
While insurance revenue and insurance services revenue increased by 4% and 3% respectively, the decrease in net income was mainly due to a decrease in investment income, which decreased from BD 1.36 million to BD 0.66 million during the period. 51% decrease.
Year-on-year investment income increased in the third quarter, primarily due to market recovery from the sharp decline in the first half of the year.
Earnings per share for the third quarter were 11 fils compared to 17 fils in the year-ago period.
Total comprehensive income attributable to shareholders for the third quarter ended September 30, 2023 was BD0.76 million, a decrease of 65% compared to BD2.18 million for the same period last year.
For the nine months ended 30 September 2023, the Group achieved a net profit attributable to shareholders of BD5.45 million. This was down 47% compared to BD 10.35 million in the same period due to special non-recurring income. In the first quarter of 2022, 5.87 million BD was reported.
Earnings per share decreased to 46 fils compared to 87 fils in the nine months of 2022.
Total comprehensive income attributable to shareholders for the nine months ended September 30, 2023 was BD6.85 million, an increase of 20% compared to BD5.72 million in the same period last year.
The extraordinary non-recurring gain of BD5.87 million reported in the first quarter of 2022 was primarily due to the reclassification of Arabian Shield Cooperative Insurance Company (ASCIC), an equity method investee based in Saudi Arabia.
The investment in ASCIC was reclassified as an available-for-sale asset carried at fair value effective January 12, 2022.
Excluding the impact of this non-recurring reclassification gain, BNH achieved growth of 22% compared to the same period in 2022.
ASCIC was subsequently reclassified to fair value through other comprehensive income in accordance with IFRS 9 Accounting Standards.
Total shareholders’ equity (excluding non-controlling interests) for the nine months ended September 30, 2023 increased by 4% to BD 68.59 million compared to BD 65.91 million at the end of the previous year.
Total assets amounted to 110.89 million BD, a decrease of 1% compared to 111.49 million BD at the end of the previous year.
BNH reported a 2% decrease in insurance income for the nine months of 2023 to BD 32.28 million compared to BD 32.95 million.
Insurance service performance for the nine months of 2023 decreased by 3% to 4.86 million BD, compared to 4.99 million BD in the same period last year.
BNH reported investment income of BD2.37 million for the nine months of 2023 compared to BD1.23 million for the same period in 2022, an increase of 92%.
The Group’s share of investee profits accounted for using the equity method for the nine-month period increased by 23% to BD 1.11 million compared to BD 900 million in the same period last year.
Farouk Almoayed, Chairman of BNH, commented: “We are pleased to see BNH’s continued strong performance through the nine months of 2023. Investment performance continues to be strong, both across our marketable securities and across our portfolio companies.” BNH’s strong performance Given the current liquidity and rising yield environment, we are uniquely positioned to seize new opportunities. ”
Raed Fakhri, Group Chief Executive Officer of BNH, commented: “Excluding non-recurring reclassification gains in the first half of 2022, BNH achieved impressive growth of 22%. We continue to effectively manage our balance sheet, rebalance our portfolio and increase the growth of our portfolio companies. We increase shareholder equity through the implementation of initiatives aimed at improving our business performance.”
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).