Manama, Bahrain – 30 March 2017

The shareholders of Securities & Investment Company (SICO), which is licensed by the Central Bank of Bahrain as a conventional wholesale bank, have approved the distribution of a cash dividend of BD 2.142 million for 2016, which represents 5 per cent of the paid-up capital. The dividend was recommended by SICO’s board of directors and approved by the shareholders at the Bank’s annual general meeting (AGM) held on Thursday 30 March 2017 at the Diplomat Radisson Blu Hotel, Bahrain. The quorum at the AGM was 100 per cent.

On behalf of the board of directors, Chairman Shaikh Abdulla bin Khalifa Al Khalifa reported that SICO posted a consolidated net profit of BD 2.3 million for 2016 compared with BD 2.8 million the previous year. Significantly, total assets under management increased by 19% to more than US$ 1 billion, while fee-based income accounted for over 50 per cent of total revenues. “These achievements reflect the resilient and proactive approach adopted by the Bank’s core business lines throughout the year, and illustrate clients’ continued confidence in SICO’s ability to deliver a superior performance in challenging market conditions,” commented Shaikh Abdulla.

The Chairman also reported that the Bank took a strategic decision in 2016 to diversify its product offering with the addition of real estate-related business activities. “Our entry into alternative investments asset management will further diversify SICO’s revenue streams and enhance recurring income, which will help us in withstanding the impact of ongoing market volatility,” he noted.

According to Shaikh Abdulla: “2017 is likely to be another highly-testing and unpredictable period. However, improved stability in oil prices, together with the economic reforms being implemented by regional governments, should have a beneficial future impact on GCC economies. The board has every confidence in the Bank’s prospects, and its ability to seize growth opportunities, irrespective of the challenges that might lie ahead.”

The shareholders reviewed and approved the board of directors’ report, audited financial statements, and corporate governance report, for the year ended 31 December 2016; and also approved appointment of the external auditors.  Based on the Bank’s 2016 financial results, and in accordance with the Bahrain Commercial Companies Law 2001, BD 234 thousand has been transferred to the statutory reserve. Total shareholders’ equity after appropriation of the statutory reserve stood at BD 58.1 million at the end of 2016, compared with BD 58.4 million at the end of the previous year.

Following approval by the shareholders, the Chairman welcomed two new members to the Board ;  Mr. Khurram Ali Mirza representing the Social Insurance Organisation and Mr. Emad Al Saudi representing Bank ABC . He also thanked outgoing directors Mr. Mahmoud Al Zewam Al Amari and Mr Yusuf Saleh Khalaf for their valuable contribution and highly- valued service .

An extraordinary general meeting was also convened, at which shareholders approved amendments to SICO’s memorandum and articles of association, subject to approval by the Ministry of Industry, Commerce & Tourism and the Central Bank of Bahrain.

-Ends-

Securities & Investment Company BSC (c) (SICO) 
Headquartered in the Kingdom of Bahrain, and with a growing regional presence and international footprint, Securities & Investment Company (SICO) is one of the premier regional banks focusing on the GCC region. SICO provides a select range of investment banking solutions – asset management, brokerage, market making,  and corporate finance, which are underpinned by an independent, value-added research capability. SICO also provides through its fully owned subsidiary, SICO Funds Services BSCc, custody and fund administration solutions.

Established in 1995, and listed on the Bahrain Bourse in 2003 as a closed company, SICO operates under a conventional wholesale banking licence from the Central Bank of Bahrain. The Bank has two wholly-owned subsidiaries: SICO Fund Services Company BSCc (SFS) – a specialised regional custody house licensed by Central Bank of Bahrain; and SICO UAE – an Abu Dhabi-based brokerage firm licensed by the Emirates Securities & Commodities Agency.

© Press Release 2017