- Strong growth driven a 57% y-o-y growth in net fee income and an almost two-fold increase in investment income
Manama, Kingdom of Bahrain: SICO BSC (c), licensed as a conventional wholesale bank by the Central Bank of Bahrain “CBB”, announced today its consolidated results for the first quarter ended 31 March 2022.
SICO’s consolidated net profit attributable to shareholders increased by 81% in the first quarter of 2022 to BD 2.20 million (USD 5.83 million), compared to BD 1.22 million (USD 3.23 million) for the same quarter of the previous year. Earnings per share stood at 5.22 Bahrain fils for the quarter ended 31 March 2022, compared to 3.13 Bahraini fils in the same quarter last year. Total comprehensive income attributed to shareholders increased by 70% in the first quarter of 2022 to BD 2.48 million (USD 6.57 million) compared to BD 1.46 million (USD 3.86 million) for the same quarter of the previous year.
Total equity attributed to shareholders remained almost unchanged at BD 69.19 million (USD 183.52 million) as at 31 March 2022, compared to BD 68.87 million (USD 182.67 million) as at 31 December 2021.
Total assets increased by 12% to BD 294.54 million (USD 781.28 million) as at 31 March 2022 compared to BD 263.52 million (USD 699 million) on 31 December 2021. The expansion in SICO’s asset footing was attributable to securities bought under repurchase agreements, as well as an increase in treasury bills and other cash balances during the quarter.
SICO maintained a remarkable growth momentum in the first quarter of 2022 driven by the diversity and leading market positions across its business lines. The bank recorded an 87% growth in net investment income to BD 2.19 million (USD 5.80 million) from BD 1.17 million (USD 3.11 million) recorded in the quarter ended 31 March 2021. The strong performance reflects SICO’s ability to capitalize from its healthy asset allocation. SICO also successfully recovered BD 1 million (USD 2.7 million) during the quarter from an investment which SICO had fully written off earlier.
An upward trajectory across regional equity markets, along with strong returns achieved on all clients’ mandates, has supported a 57% increase in net fee income to BD 1.49 million (USD 3.96 million) in first quarter 2022 compared to the BD 953 thousand (USD 2.53 million) recorded during the same quarter last year. Brokerage and other income recorded BD 821 thousand (USD 2.18 million) in Q1 2022, compared to BD 745 thousand (USD 1.98 million) booked in first quarter 2021. Finally, net interest income booked BD 539 thousand (USD 1.43 million) in the first quarter of 2022, an increase of 33% from the BD 405 thousand (USD 1.07 million) recorded in the same quarter last year.
On a gross basis (including leverage) SICO’s assets under management (AUMs) increased by 9% to BD 1.9 billion (USD 4.9 billion) as of 31 March 2022, compared to BD 1.7 billion (USD 4.5 billion) recorded at year-end 2021. Meanwhile, on a net basis (excluding leverage), total AUMs increased by 8% to BD 1.7 billion (USD 4.5 billion) as of 31 March 2022, compared to BD 1.5 billion (USD 4.1 billion) recorded on 31 December 2021. The growth in AUMs was driven by additional mandates and subscriptions to funds across asset classes and the continued outperformance of SICO’s assets under management mandates and funds.
SICO’s subsidiary, SICO Funds Services Company, saw its assets under custody increase by 2% to BD 3.2 billion (USD 8.4 billion) as of 31 March 2022 compared to BD 3.1 billion (USD 8.2 billion) as of 31 December 2021.
Commenting on SICO’s performance for the first quarter, Chairman of the Board Shaikh Abdulla bin Khalifa Al Khalifa said: “SICO has started the year with strong results, proving again it is able to weather global and external challenges as it cements its reputation as a leading financial service provider in the region. The bank’s resilience is underlined by its increasingly diversified offering across its lines of business and expanded regional presence. We are proud of SICO’s ability to provide best-in-class services to its customers while driving sustainable value to our stakeholders.
Chief Executive Officer Ms. Najla Al-Shirawi added: “Despite the elevated global geo-political risk and its ripple effect on an economic level globally and regionally, SICO was able to leverage its diversified business lines to capitalize on increased market activity and positively impact our top and bottom lines. I am also particularly pleased with SICO Capital development, as we deepen our presence and breadth of our service offering in Saudi Arabia. SICO Capital successfully capitalized on the heightened market activity in Saudi Arabia, most notable of which was our investment banking team’s role as sole financial advisor to Saudi Innova Healthcare in a private placement sale of 75% of its shares. Meanwhile, SICO Capital’s Saudi REIT Fund also signed an agreement to acquire a new commercial property in Riyadh valued at SAR 448 million as it seeks to diversify its portfolio in line with the fund’s new strategy. Finally, we maintain our leadership as the number one brokerage firm in Bahrain in terms of value of transactions, and continue to enhance the functionality of our digital trading platform SICO LIVE,” Al-Shirawi concluded.
SICO kicked off the year being named Best Investment Bank in Bahrain at the 2022 Global Finance World's Best Investment Banks awards for the third consecutive year. Additionally, SICO continues to be the Kingdom’s leading broker with a 54% market share in the first quarter of 2022 and the most active market maker for 24 consecutive years. The bank was also named one of 15 top rated managers of funds registered in the GCC by Citywire, achieving an AAA rating as of March 2022.
SICO is listed on Bahrain Bourse (“BHB”) and its code is SICO-C. The press release and full set of financial statements will be available on SICO and BHB websites.
SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 4.5 bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialised regional custody house, SICO Fund Services Company (SFS). SICO also oversees a majority-owned subsidiary, SICO Capital, a Saudi-based investment banking company. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees.
Ms. Nadeen Oweis
Head of Corporate Communications, SICO