MANAMA: Bahrain National Holding Company (Trading Code: BNH) announced its financial results for the fourth quarter and for the year ended 31st December 2022.
For the fourth quarter ended 31st December 2022, the Group achieved a net loss attributable to the shareholders of BD 206 thousand compared to a net profit of BD1.21 million during the fourth quarter of the previous year. The loss per share for the fourth quarter was 2.1 fils compared to earnings per share of 10.7 fils during the same period of 2021. The total comprehensive loss attributable to the shareholders for the fourth quarter ended 31st December 2022 was BD 561 thousand, compared to total comprehensive income attributable to the shareholders of BD1.68 million during the same period of 2021. The decrease in the net profit for the fourth quarter of 2022 compared to the same period of last year was predominantly attributable to the impairment losses on investments of BD1.2 million. The impairment is primarily the result of the fall in value of our investment in Arabian Shield Cooperative Insurance Company, which is listed at the Tadawul, KSA. The Group’s investment in Arabian Shield, was reclassified from “Associate” to “Available for Sale” security in the first quarter of 2022.
For the year ended 31st December 2022, the Group achieved a net profit attributable to the shareholders of BD 6.55 million, compared to BD6.39 million during the last year, an increase of 2%. Earnings per share decreased to 55.8 fils compared to 56.7 fils for the year 2021. The total comprehensive income attributable to the shareholders for the year ended 31st December 2022 decreased to 2.95 million, compared to BD7.51 million during the last year of 2021, a decrease of 61%.
The Group achieved a Net Profit of BD 7.0 million for the year ended 31st December 2022 compared to BD 6.7 million in the previous year. The increase compared to the previous year was predominantly attributable to the increase in Net Investment Income that reached a record BD 3.9 million, 16% higher than 2021.
The total shareholders' equity (excluding non-controlling interest) at the end of the year 2022 increased to BD64.34 million compared to BD62.22 million as at the end of the previous year, an increase of 3%. The total assets reached BD126.43 million compared to BD119.28 at the end of the last year, an increase of 6%.
Gross insurance premiums grew by 5% to BD 41.96 million compared to BD39.86 million in 2021. Net earned premium also increased by 5% to BD18.84 million, compared to BD17.98 million last year. Net underwriting profits was flat at BD4.1 million despite the slight increase in claims trends on increasing economic activity. The net investment income grew by 16% to BD3.86 million compared to BD3.34 million in 2021.
In view of the strong performance in 2022, and after taking into consideration the Group's future capital requirements, the board of directors is pleased to recommend an annual cash dividend of 35% and equivalent to 35 fils per share, compared to the approved dividend of 30% and equivalent to 30 fils per share in 2021, subject to shareholders’ approval at the Annual General Meeting.
Mr. Farouk Almoayyed, Chairman of Bahrain National Holding, commented: " We are pleased with the performance of the Group in view of the challenging market conditions in both the insurance and investment markets. We witnessed growth across all lines of business, except for motor, which was impacted by lower sales volumes in the market. The investment outlook has shifted significantly over the past year, and our strong liquidity position open up a number of investment avenues for the Group”.
Mr. Raed Abdulla Fakhri, the new Group Chief Executive of BNH, commented, saying: "The technical and investment results achieved by the Group were during the tenure of Mr. Sameer Al-Wazzan, who retired on February 14, 2023. The net profit for this year is the highest in the history of the Group. Despite all challenges, during the year 2022, the Group worked in cooperation with its subsidiaries in launching several new and distinguished products and services, and it was proactive in offering them in line with the requirements of our customers, and the Group has many projects that it is working to develop in the near future. We have also strengthened technical expertise the Group, with increased spending on training and promoting deserving Bahraini talent.”
“I thank the members of the Board of Directors for their continuous guidance and support, as well as the efforts of all employees for their dedication to developing the Group’s performance. The year 2023 will bring many opportunities and challenges, and we, thanks to our distinguished work team, will be ready for that” he added.
The audited consolidated financial statements for the year ended 31st December 2022 and the press release are available on our website www.bnhgroup.com and the Bahrain Bourse's website.