Esterad Investment BSC : Press Release Q3 2022 – English-English-v3

ESTERAD Achieves Net Profit Attributable to the

Shareholders of BD 363,856 in Q3-2022, a 19% YoY Increase

"ESTERAD Announces financial results for Q3-2022 and the nine months

period ended 30.09.2022''

Esterad Investment Company B.S.C. (Trading Code: ESTERAD) announced in its Board of Directors meeting on Saturday, November 12th 2022, the financial results for the nine-month period for the current year, including the financial results for the third quarter.

Esterad reported a net profit attributable to the shareholders of BD 363,856 in Q3-2022 compared to BD 305,081 during the same period last year, which is an increase of 19%. Earnings per share during the third quarter amounted to 2.6 fils, compared to 2.2 fils during the same period in 2021. The reason for the increase in profits during this quarter is due to the increase in the returns from our private equity & fixed income portfolios. The total comprehensive income attributable to the shareholders reached BD 330,045 in Q3-2022 compared to BD 109,968 in Q3-2021, which is an increase of 200%. This increase is due to higher fair value of investments in Q3-2022. Esterad achieved a total income of BD 621,706 during the third quarter, compared to BD 733,609 in the third quarter of last year, which is a decrease of 15%.

For the nine months ending September 2022, Esterad achieved a net profit attributable to the shareholders of BD 928,175 compared to BD 1,038,744 for the same period last year, a decrease of 11%. Earnings per share was 6.7 fils, compared to 7.4 fils for the same period last year. The total comprehensive income for the period attributable to the shareholders for the nine months was BD 452,976 compared to BD 948,977 for the same period last year, a decrease of 52%. The decrease in net profit and total comprehensive income is primarily attributed to the decrease in fair values of fixed income investments, that decreased in value due to rising interest rates during the year. Total income for the nine months amounted to BD 2,399,816 compared to BD 2,270,776 of the same period last year, representing an increase of 6%.

Total shareholders' equity attributable to the shareholders as of end of September 2022 is BD 33,862,970 compared to BD 34,240,946 as of end of December 2021, which is a slight decrease of 1%. Total assets by the end of September 2022 reached BD 50,401,766 compared to BD 50,300,119 as of end of December 2021, with a slight increase of 0.2%.

Commenting on these results, Mr. Ahmed Abdulrahman, Esterad Chief Executive Officer, stated: "We are pleased to achieve a strong performance and to announce these positive results for the third quarter of 2022. Despite the global and regional economy facing many challenges, as it witnesses continued high inflation rates, numerous interest rate rises and unstable political conditions, we maintained a steady improvement in our performance and achieved high rate of profit grow. In addition, we will continue to invest in various new business and strategic initiatives aimed at inclusive growth that will benefit all our stakeholders.

Mr. Abdulrahman commented regarding Venture Capital Bank B.S.C.(c) acquisition by Esterad Investment Company: "The company obtained regulatory approval last week, as the company acquired 99.5% of the bank's shares. This acquisition will add a qualitative leap for the company, as it will create investment opportunities that will achieve the aspirations of our valued shareholders, that will lead to financial and operational performance growth that will contribute to the company's business and resources development. The company will work at the present time to restructure the bank and develop its assets, which will directly reflect on Esterad and its shareholders.

Mr. Abdulrahman added "Amwaj Beachfront project continues progressing according to the agreed time frame. The project will constitute a unique addition to the Kingdom of Bahrain tourism infrastructure, which will enhance the growth of the local economy.

Note: The press release and the full financial statements are available on Bahrain Bourse's website.