MANAMA: Bahrain National Holding Group achieved a record net profit attributable to the shareholders of BD5.64 million for the half year ended June 30, 2022, compared to BD3.14m during the half year of 2021, an increase of 80 per cent.
As a result, earnings per share increased to 48.9 fils compared to 27.9 fils for the half year of 2021. The total comprehensive income attributable to the shareholders for the first half year of 2022 was BD2.71m, compared to BD3.77m during the first half year of 2021, a decrease of 28pc.
The increase in the net profit for the first half 2022 in comparison to the first half 2021 was attributable to an extraordinary non-recurring gain on reclassification of an equity accounted investee to available-for-sale investment, amounting to BD5.87m; however, this gain was partially offset by impairment loss of BD4.46m on the same investment during the second quarter of 2022. This, along with the significant growth in underwriting profits and investment income led to the increase of 80pc in the net profit.
The net profit attributable to the shareholders for the first half excluding the effects of the above reclassification and the subsequent provision is BD4.23m, a growth of 35pc over the first half of 2021.
The shareholders’ equity (excluding non-controlling interest) as of June 30, 2022, was BD64.11m compared to BD62.22m as at the end of last year, an increase of 3pc.
Total assets increased to BD121.73m compared to BD119.28m at the end of the previous year, an increase of 2pc.
The gross insurance premiums grew by 5pc to BD21.59m during the first half of 2022 compared to BD20.52m for the same period of last year.
Net earned premiums increased by 6pc to BD9.28m, compared to BD8.78m for the same period of last year.
Net underwriting profits increased to BD2.36m for the first half year of 2022, compared to BD2.05m for the same period last year, an increase of 15pc.
The net investment income grew by 67pc to BD2.64m compared to BD1.58m for the same period of 2021.
For the second quarter ended June 30, 2022, the group has reported a net loss attributable to the shareholders of BD2.13m as against a net profit of BD1.26m during the second quarter of the previous year.
However, this net loss for the second quarter 2022 was attributable to an impairment loss of BD4.46m on an available-for-sale investment.
This investment was reclassified from an equity accounted investee.
An extraordinary non-recurring gain, amounting to BD5.87m was booked in the first quarter of 2022, on reclassification of an equity accounted investee to available-for-sale investment.
The net profit attributable to the shareholders for the second quarter ended June 30, 2022, excluding the effects of the above reclassification and the subsequent provision is BD2.33m, a growth of 85pc over the second quarter of 2021.
Loss per share during the second quarter was 18 fils compared to earnings per share of 11.2 fils in the second quarter of the previous year.
The total comprehensive income attributable to the shareholders for the second quarter of 2022 was a loss of BD3.15m, compared to an income of BD2.39m for the previous period of last year.
The gross insurance premiums for the second quarter of 2022 were flat at BD9.85m whereas the net earned premiums increased by 5pc to BD4.61m, compared to BD4.38m in the second quarter of last year.
The group reported net underwriting profit of BD1.36m during the second quarter, compared to BD0.97m in the second quarter of the previous year, an increase of 40pc.
Net investment income grew by 173pc to BD1.48m during the second quarter, compared to BD0.54m in the second quarter of the previous year.
BNH chairman Farooq Almoayyed commented: “We are pleased with the investment results achieved, as it reflects the clear vision illustrated by the board of directors to promote the provision of distinguished services and achieve better financial results.”
Sameer AlWazzan, group chief executive of BNH, said: “The group updated its core systems to keep pace with changes and to use the advanced technology to assess the risks and its technical performance.
The dedicated team for the transformation and application of the international accounting standards, IFRS 9 and IFRS 17, is working according to the plan and is now in the final implementation stage of the systems and comparisons. Moreover, the group’s insurance subsidiaries provided new insurance solutions for SMEs to help them grow and stabilise their positions in the market.
The group has also continued on developing its staff through specialised courses to raise the level of competencies and refine the skills of employees, and we are confident that the group will continue its endeavour to achieve the best services for its customers and shareholders.”
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