Bahrain National Holding Company (Trading Code: BNH) announces its financial results for the third quarter and for the nine-month periods ended 30th September 2020.
For the third quarter ended 30th September 2020, the Group achieved a net profit attributable to the shareholders of BD1.48 million, compared to BD1.78 million during the third quarter of the previous year, a decrease of 17%. Earnings per share during the third quarter was 13.1 fils compared to 15.8 fils in the third quarter of the previous year. The total comprehensive income attributable to the shareholders for the third quarter ended 30th September 2020 was BD2.63 million, compared to BD1.84 million during the previous period of last year, an increase of 43%.
The Group achieved net earned premiums in the third quarter of BD4.06 million, compared to BD4.50 million in the third quarter of last year, a decrease of 10%. Despite this, the Group reported underwriting profit of BD1.14 million during the third quarter, compared to BD861 thousand in the third quarter of the previous year, an increase of 32%, primarily due to lower claims. Net investment income after impairment loss fell by 44% to BD551 thousand during the third quarter, compared to BD990 thousand in the third quarter of the previous year due to relatively difficult investment market conditions.
For the nine-month period ended 30th September 2020, the Group achieved a net profit attributable to the shareholders of BD3.89 million, compared to BD4.54 million in the previous period of last year, a decrease of 14%. Earnings per share was 34.5 fils compared to 40.3 fils for the nine-month period of 2019. The total comprehensive income attributable to the shareholders for the nine-month period ended 30th September 2020 was BD3.53 million, compared to BD5.84 million during the previous period of last year, a decrease of 40%.
The decrease in the net profit for the nine-month period ended 30th September 2020 in comparison to of similar period of the previous year was primarily due to the drop in net investment income and the lower share of profits of equity accounted investees.
The Group reported a decrease of 5% in net earned premiums to BD12.47 million, compared to BD13.18 million of nine-month period of last year. Despite this, the Group registered an underwriting profit of BD3.08 million during the nine-month period of 2020, compared to BD2.22 million in previous period of year, an increase of 38%. Net Investment Income after Impairment loss decrease by 27% to BD1.79 million for the nine-month period 2020, from BD2.46 million in the previous period.
The total shareholders’ equity (excluding non-controlling interest) as at the nine-month period ended 30th September 2020 increased by 2% to BD54.87 million compared to BD53.84 million as at the end of the previous year. The total assets reached BD109.75 million compared to BD105.83 million as at the end of previous year, with an increase of 4%.
Mr. Farooq Almoayyed, Chairman of Bahrain National Holding, commented: “After the relatively difficult environment in the first half of 2020 we are very pleased with the results of the Group and we are also glad that there are initial signs of normalization in business activities. This normalization is especially reflected in the third quarter performance on both the insurance subsidiaries as well as some of our associates. As a result of the pandemic, several trends like the shift of processes online have been intensified and our focus is to rapidly adjust and exploit this new environment. The group continues to pay close attention to its liquidity and balance sheet strength, which we believe, will increasingly become a competitive differentiator.”
Mr. Sameer AlWazzan, Chief Executive of BNH, commented: “We are happy to report strong results in a challenging environment This has been made possible by our rapid response to the challenges posed by the pandemic. Our gross premium growth was made possible by a resilient performance by all insurance lines. Although Motor topline was impacted by the drop in new car sales, that line of business, performed creditably in a very competitive environment. The Group benefited from lower claims and cost control while investments were understandably impacted by the severe macro-environment, but the portfolio value was well protected despite the volatility in the markets. We are making good progress with our digital initiatives and hope to further enhance the service levels for our customers.”
Reviewed financial statements for the nine-month period ended 30 September 2020 and the press release are available on our website www.bnhgroup.com and the Bahrain Bourse’s website.