Manama, Kingdom of Bahrain – SICO BSC (c), a leading regional asset manager, broker, and investment bank (licensed as a conventional wholesale bank by the Central Bank of Bahrain), announced today that its net profit for the first half of 2018 increased by 19% to BD 2.5 million from BD 2.1 million for the corresponding period of last year. Total operating income grew by 19% to BD 6 million from BD 5.1 million a year earlier. Total operating expenses, including staff overheads, general administration and other expenses, increased to BD 3.2 million from BD 2.8 million. Earnings per share increased to Bahraini fils 6.74 compared to 5.06 fils for the first half of 2017. Total comprehensive income for the first half of 2018 was BD 2.7 million; representing an increase of 8% from the comprehensive income of BD 2.5 million achieved in the corresponding period last year.
Commenting on the results, Chairman of the Board, Shaikh Abdulla bin Khalifa Al Khalifa said: “I am pleased to announce that the bank posted strong financial results for the first six months of 2018. SICO’s business lines enjoyed an active and successful first half, with highlights including a continuing upward trend in assets under management, with brokerage and investment banking maintaining their dominant market position, and the proprietary book posting a strong performance. SICO continues to demonstrate its ability to seize market opportunities and inspire investor confidence, positioning the Bank to finish 2018 on a strong note.”
For the second quarter, SICO posted a BD 1.07 million net profit, a 39 per cent increase from BD 769 thousand during the same period of last year on the back of higher revenues across all business lines. The bank reported a 21 per cent increase in total operating income, from BD 2.3 million to BD 2.8 million , while total operating expenses, including staff overheads, general administration and other costs, increased from BD 1.4 million to BD 1.6 million.. Earnings per share, increased from 1.87 Bahraini fils to 2.89 fils for the second quarter of 2018.
As of 30 June 2018, the balance sheet stood at BD 137.5 million compared with BD 131.3 million at the end of 2017. Assets under management have grown significantly to BD 681.97 million (US$ 1.8 billion) from BD 465.4 million (US$ 1.2 billion), representing 47% growth in comparison to the 2017 year-end balance. Assets under custody with the Bank’s wholly-owned subsidiary, SICO Funds Services Company (SFS) grew from BD 2.2 billion (US$ 5.7 bn) as at 31 December 2017 to BD 2.3 billion (US$ 6.1 bn).
SICO continued to maintain a comfortable capital base, well above regulatory requirements, ending the period with a shareholders’ equity of BD 54.6 million (end-2017: BD 59.8 million). The lower capital base compared to December 2017 is primarily due to SICO acquiring back 10% of its shares as treasury stock, amounting to BD 5.9 million, during the first half of 2018. Dividends’ amounting to BD 1.93 million were also distributed. Accordingly, the consolidated capital adequacy ratio stood at 57.92%.
Putting SICO’s financial results into context, Chief Executive Officer Ms. Najla Al Shirawi said: “GCC government revenues and GDP received a boost over the past six months from strong oil prices, with Brent Crude rising nearly 19% in the first half of the year; we expect to see higher earnings in some key sectors. GCC market performances continued to diverge during the period, with Saudi Arabia and Kuwait markets strengthening due to their inclusion on MSCI and FTSE, while Dubai and Oman have posted disappointing performance as investors reallocate their positions within the GCC.”
Ms. Al Shirawi continued: “Asset Management maintained its robust growth trend with all SICO funds performing strongly against their respective benchmarks and peers. SICO maintained its position as the number one broker and leading Market Maker on the Bahrain bourse, handling more than 7,314 transactions involving 773 million shares worth a total value more than BD 145 million. This translates to a market share in excess of 56%.
In addition, the Bahrain Liquidity Fund, for which SICO is the Fund Manager, continued to meet its objectives of increasing the liquidity and depth of the Bahrain Bourse, whereby the market’s total traded value jumped c.19% YoY to BHD 128mn in 1H18 with BLF contributing 28% of the traded value.
During the period, SICO was appointed lead manager and underwriter for an initial public offering by APM terminals, the exclusive operator of Khalifa Bin Salman Port, which is a multi-purpose facility for domestic cargo and cruise traffic, and a trans-shipment hub for the growing Gulf shipping market. The IPO, which is expected in the 4th Quarter 2018, will list 20% of the company’s shares on the Bahrain Bourse.”
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About SICO
SICO is a leading regional asset manager, broker, and investment bank, with more than USD 1.8 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 and a specialised regional custody house, SICO Fund Services Company (SFS).
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.
Media Contact:
Ms. Nadeen Oweis
Head of Corporate Communications
SICO BSC (c)
Direct Tel: (+973) 1751 5017
Email: noweis@sicobank.com
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