Bahrain-based Securities & Investment Company (SICO Investment Bank) today announced its 2006 half year financial results.
For the six-month period ended 30 June 2006, the Bank reported a consolidated net income of BD2.023 million versus BD3.129 million for the corresponding period in 2005. Total income for the first half of the year was BD 3.105 million, a 19.4 percent decline from BD 3.853 million recorded for the first half of 2005.
Earnings per share was Bahrain fils 15 compared to Bahrain fils 25 for the same period in 2005. Assets under Management increased by 31.3 percent to BD BD129.512 million for the first six months of the year up from BD 98.652 million as of December 31, 2005.
The first half of 2006 saw net interest income increase by 263 percent to BD 636 thousand versus BD 175 thousand year-on-year. Loss on trading securities amounted to BD 866 thousand for the 2006 period versus recorded gains of BD 1.948 million for the first half of 2005.
Dividend income grew by 35 percent to BD 366 thousand compared with BD 271 thousand in the previous year. Other income, which includes brokerage commissions, corporate finance, and asset management registered a gain of 52.3 percent from BD 1.382 million in 2005 to BD 2.105 million for the first half of 2006.
Total expenses for the six-month period were BD 1.082 million, a 49 percent rise from BD 724 thousand reported during the 2005 first half. The increase is largely attributed to costs associated with staff and other related expenses as SICO continues its growth and the expansion of its industry leading brokerage, asset management, corporate finance and research teams.
Commenting on the financial results, Anthony C. Mallis, Chief Executive Officer of SICO, said, 'In spite of challenging market conditions and their impact on the bottom line, SICO is pleased with the strong progress we continue to make as reflected by the year-on-year gains particularly in fee based revenues.
'Our ability to achieve these results in the face of declining liquidity in the regional markets and the retraction of investor risk appetites is a positive endorsement of the strength of SICO's business model and strategy, which is based on effective product and asset diversification. Furthermore, it reflects the confidence our clients have in our ability to execute and deliver value as well as the leadership we continue to demonstrate in our asset management, investment banking and brokerage divisions.'
For the first six-months of 2006, SICO performed exceptionally, ranking as the leading broker in terms of the monetary value of shares transacted on the Bahrain Stock Exchange (BSE). This constituted the ninth consecutive year that the Bank placed first in these semi-annual standings, which clearly underscore SICO's position as the most active GCC broker of Bahraini-listed equities. In addition, in May 2006, the Bank also concluded the largest single transaction for the year-to-date period on the Bahraini exchange, presiding over the sale and purchase of more than 105.2 million shares of the Bank of Bahrain and Kuwait in a transaction valued at BD70.4 million.
During the first half of the year, the Bank showed positive momentum in other key areas. Despite difficult markets, SICO's outstanding abilities in Asset Management were reinforced as assets under management increased by 31.3 percent.
Furthermore, the Bank concluded a number of compelling transactions for the period. These included the closing of the 2006 BCFC Bond Issue, the Bahrain Cinema Rights Issue and the Initial Public Offering (IPO) of Al Salam Bank, which was successfully oversubscribed by 63 times.
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© Press Release 2006
