BNH records 10pc growth in net profit

24/03/2016 08:13 AST

Shareholders of Bahrain National Holding Company (BNH) will receive dividend payout of 20 per cent of paid-up capital amounting to BD2.15 million, after it was approved during the annual general meeting at the Ritz-Carlton Bahrain yesterday.

The company has reported an increase of 10 per cent in net profit at BD4.2m ($11.1m) for last year compared with BD3.8m in 2014, which the company said was its highest since 2007.

Chairman Farouk Almoayyed said the company has seen strong overall performance, with continued growth in gross premiums and net profit.

"This was primarily due to strong growth in both underwriting and investment income," he added.

He said apart from the steady performance of insurance and investment operations, the growth can be attributed to the positive results from associate companies, which saw profits increase from BD1m in 2014 to BD1.5m last year, a growth of 53pc.

Gross premiums registered a growth of 10.4pc from BD25.7m in 2014 to BD28.4m last year. The firm has reported strong liquidity with cash and balances with banks of BD10.9m last year compared with BD9.2m in 2014.

The return on equity improved to 8.8pc for last year as compared with 8pc for 2014. The earnings per share increased by 10pc from 33.6 fils in 2014 to 37.8 fils last year.

Expenses increased, primarily due to regulatory motor accident levy, higher reserving and acquisition costs, and the consolidation of iAssist, which became a fully-owned subsidiary after purchase of remaining 50pc stake last year.

These cost increases resulted in a marginal decline in net underwriting profit, from BD2.4m to BD2.3m.

Investment income decreased 14pc from BD2.4m in 2014 to BD2.1m last year due to difficult investment market conditions.

BNH chief executive Sameer Al Wazzan said although the current year was not expected to be east from an economic and investment point of view, the company looked forward to the challenge.

Gulf Daily News