• Home
• Bahrain
• News Article

Securities & Investment Company announces net profit of BD 1.351 million for the first quarter 2012

Manama, Bahrain - May 9^th , 2012: Bahrain-based Securities & Investment Company (SICO) announced today a net profit of BD 1.351 million (USDLRS 3.6 million) for the first quarter of 2012 compared to a loss of BD 627,000 (USDLRS 1.7 million) for the same period of the previous year.

Net interest income during the first quarter of 2012 increased to BD 309 thousand (Q1 2011: BD 232 thousand), while fee and commission income declined to BD 548 thousand (Q1 2011: BD 565 thousand). Brokerage and other income fell to BD 168 thousand (Q1 2011: BD 316 thousand). Net Investment income stood at BD 1.527 million versus a loss of BD 654 thousand in the first quarter of 2011.

Thus operating income significantly increased to BD 2.552 million (Q1 2011: BD 459 thousand), with earnings per share growing to 3.17 Bahrain fils, versus a loss per share of 1.5 Bahraini fils for the same period the previous year.

Client fee generated Income represented 28 per cent of the operating income for the year. Assets under management increased by 7.8 percent reaching BD 222 million (US$589 million) compared to BD 206 million (US$546 million) at the end of December 2011, with most of the increase due to organic growth in assets under management. Concurrently assets under custody for the Bank's custody and administration wholly owned subsidiary - SICO Funds Services Company (SFS) - increased by 3.6 percent reaching BD 895 million (USDLRS 2.4 billion), compared to BD 864 million (USDLRS 2.3 billion) at the end of December 2011.

Total expenses, which includes, both staff overheads and general administration and other expenses grew in the first quarter of 2012 to reach BD 1.134 million from BD 1.086 million the same period the previous year. Impairment on available for sale investments were BD 67 thousand for the first quarter of 2012.

As a result of the Bank taking a more positive view of the market environment, the balance sheet was re-leveraged during the past three months, so by the end of the first quarter total assets increased to BD 99.7 million (USDLRS 264 million), from year-end 2011 when total assets reached BD 70.6 million ( USDLRS 187 million), while total liabilities increased to BD43.1 million (USDLRS 114 million) from BD16.7 million (USDLRS 44 million) at the end of December 31^st, 2011.

SICO maintained a strong capital base ending the quarter with BD 56.5 million (USDLRS 150 million) in shareholder equity compared to BD 53.9 million (USDLRS 143 million) as of 31st, December 2011.

SICO's outlook continues to be prudent, and its strategy remains focused on maintaining a strong balance sheet, in order to take advantage of opportunities and capitalise on a further market recovery, expected to continue in 2012 - but also taking into account any possible turbulence that the capital markets may face going into the year.

"While the environment for the Bank's investments was more settled, some of the business lines did not see a sufficient recovery for the quarter, although we also started to observe a noticeable turnaround in brokerage and asset management activities which we believe will contribute to the rest of the year's revenue flow.

Despite the fact that SICO has an expansionary posture in terms of our businesses, we have maintained a prudent position in our risk appetite as we monitor the regional and global economic environment. Although the overall economic environment was more benevolent than the previous and final quarter of last year, market volatility was still high. As we have mentioned before, it is our view that very substantial economic challenges, with turbulence and uncertainty, will continue for the foreseeable period and therefore the Bank has maintained a realistically cautious position during the first quarter of 2012", according to Anthony Mallis, Securities & Investment Company's CEO.

Securities & Investment Company is a wholesale bank offering a selective range of investment banking services, including asset management, brokerage, corporate finance and market-making, on a regional basis and with a particular emphasis on Bahrain. Through its wholly owned subsidiary, SICO Funds Services Company (SFS), SICO also provides custody and fund administration services.

SICO's comprehensive range of research, regular market updates and reviews, and Fund Reports, can be accessed via www.sicobahrain.com

© Press Release 2012

---

© Copyright Zawya. All Rights Reserved.

---