BNH earnings surge 82%

MANAMA: Bahrain National Holding Company has achieved an increase of 82 per cent in net profit at BD1.78 million for the third quarter of 2019, when compared with BD975,000 during the third quarter of the previous year.

Earnings per share were 15.8 fils compared with 8.6 fils.

Net earned premiums in the third quarter were BD4.5m, an increase of 5pc when compared with BD4.3m for the same period last year.

Underwriting profit was BD861,000, compared with BD528,000 earlier, an increase of 63pc.

Net investment income after impairment loss increased by 88pc to BD990,000 during the third quarter, compared with BD527,000 in the third quarter of the previous year.

Total comprehensive income for the third quarter was BD1.84m, compared with BD1.01m during the previous period of last year, an increase of 82pc.

The increase in the net profit relates primarily to higher net earned premium, investment income from portfolio and lower net incurred claims.

For the nine-months ended September 2019, the net profit was BD4.54m, an increase of 59pc compared with BD2.86m in the same period last year.

Earnings per share were 40.3 fils compared with 25.7 fils.

Net earned premiums saw an increase of 7pc to BD13.18m, compared with BD12.33m of nine-month period last year.

Underwriting profit was BD2.22m, compared with BD456,000 in previous period, an increase of 388pc.

Net investment income after impairment loss increased by 26pc to BD2.46m for the nine-month period, from BD1.95m in the previous period.

This was offset by a fall in share of profit from equity accounted investees by 30pc to BD1.25m.

Total comprehensive income nine-months was BD5.84m, compared with BD2.45m during the previous period, an increase of 139pc.

Total shareholders’ equity (excluding non-controlling interest) as at end-September was BD52.97m compared with BD48.85m as of end-2018.

Total assets were BD104.28m compared with BD94.38m as of end-2018, with an increase of 10pc.

The increase in net profit for the nine months was primarily due to lower net claims incurred in motor insurance and higher income from the investment portfolio.

Chairman Farooq Almoayyed commented: “The performance this year has been a result of the efforts on multiple fronts including customer retention, improved controls over claims costs and has been achieved despite conservative provisioning. The regional markets were buoyant but volatile and the investments portfolio was a strong contributor to the increase in profitability. This was achieved despite holding comfortable levels of liquidity.”

Sameer Al Wazzan, chief executive of BNH, commented: “We are pleased to see the increasing evidence of the impact of our efforts over the past few quarters to control claims without impacting our high service standards. We continue to maintain a strong and liquid balance sheet despite the slight increase in receivables. We have been able to retain and grow our client base as a result of our focus on service as well as customer’s increased preference to deal with financially strong institutions. Our focus over the next few quarters will be to enhance our digital insurance offerings by following a customer-centric approach.”

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