MANAMA: Sico has announced its consolidated net profit for the first nine months of 2019 increased by 10 per cent to BD3.6 million when compared with BD3.3m recorded in the same period of 2018.
Net operating income grew 11pc to BD9.3m compared with BD8.3m during the corresponding period last year.
Total operating expenses, including general administration expenses, staff overheads, and other expenses, were BD5.6m versus BD4.8m in the nine-month period of 2018.
Earnings per share (EPS) were 9.67 fils compared with 8.82 fils for the corresponding period of 2018. Total comprehensive income grew by 20pc from BD3.4m in 2018 to BD4.1m in the same period of 2019.
Consolidated net profit for the third quarter of 2019 was BD708,000, an 8pc decrease versus BD769,000 from the same quarter in 2018.
Net operating income decreased by 27pc from BD2.3m in Q3-2018 to BD1.7m in Q3-2019.
Total operating expenses were BD1.9m versus BD1.6m recorded in the same quarter of last year.
EPS for Q3 2019 were 1.91 fils compared with 2.08 fils in Q3 2018.
Total comprehensive income increased by 44pc to BD1.05m from BD728,000 recorded in Q3 2018.
Commenting, chairman Shaikh Abdulla bin Khalifa Al Khalifa said: “Despite some volatility across Gulf markets, Sico stood firm and has continued to lead Bahrain’s financial services industry, building on its reputation as a leading regional asset manager, market maker and the adviser of choice for its clients and investors. We look forward to building on our healthy performance for the remainder of the year as we further expand our operations and add value for our stakeholders.”
Growth during the nine-month period was driven primarily by an increase in net fee income, which grew by 17pc to BD3.1m from BD2.7m for the same period in 2018.
Growth was also supported by higher net other interest income, which grew to BD1.1m in the nine-month period, a 48pc increase over BD707,000 recorded in 2018.
Total assets under management amounted to BD784.7m as of end-September 2019, increasing by 12pc compared with BD699.1m at year-end 2018, with clients continuing to exhibit confidence in Sico as their asset manager.
Total assets under custody with wholly-owned subsidiary, Sico Funds Services Company, were BD2.7 billion at end-September 2019, increasing by 17pc from BD2.3bn at end-2018.
Total balance sheet footings of BD166.3m as of end-September, increased by 23pc from BD135.3m at end-2018, boosted primarily by higher cash and bank balances and other assets.
Total shareholder equity amounted to BD56.6m as of end-September, compared with BD55.7m as of end-2018, with a net of BD3.1m in cash dividends distributed.
Consolidated capital adequacy ratio stood at 57.5pc as of end-September.
Sico chief executive Najla Al Shirawi said, “A diversified services offering and regional presence allowed the bank to deliver strong results amidst a challenging operating environment. Regional markets continued to exhibit mixed performances during the third quarter, with corrections in Kuwait and Saudi Arabia against buying appetite in Dubai, Oman and Bahrain.
“Meanwhile Brent crude continues to be weighed down by fears of a global economic slowdown and elevated geopolitical risks. Although these trends impacted our brokerage returns, we were able to grow our fee-based business and income, booking higher management fees on fund management, discretionary portfolios and market making operations.
“We continue to inspire investor confidence with our deep regional insights, asset management experience and long track record of outperformance. At the close of the third quarter, we were successful in leveraging this reputation for excellence and secured a new mandate as investment manager for the fixed-income and equity portfolio of the Minors’ Estate Directorate by the Justice, Islamic Affairs and Endowments Ministry.”
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