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 half of the year ended 30 June 2020. SICO Funds Services Company1 recorded a consolidated net profit for the first six months of 2020 amounting to BD 159 thousand, a decrease of 94% from the BD 2.9 million recorded in the first half of 2019. Earnings per share (EPS) were 0.43 Bahraini fils for the first six months of 2020 compared to 7.76 Bahraini fils in the same period of 2019. SICO recorded a total comprehensive loss for the first half of 2020 of BD 666 thousand compared to a total comprehensive income of BD 3.0 million in the first six months of 2019.
Adverse market conditions due to the spread of COVID-19 took a toll on SICO’s net investment income during the six-month period, which recorded a loss of BD 342 thousand in the first half of 2020 compared to an income of BD 3.5 million in the corresponding period last year. However, the bank’s performance was supported by strong aggregate net fee, brokerage and other income, which came 18% higher than the previous year. Brokerage and other income reached BD 2.1 million in the first six months of 2020, growing by 71% from the BD 1.2 million recorded in the first half of 2019. Meanwhile, net fee income amounted to BD 1.7 million in the first half of 2020, down 14% from the BD 2.0 million recorded in the same period of 2019.
SICO’s total balance sheet footings recorded BD 168.7 million as at 30 June 2020, increasing by 1% from the BD 166.8 million at the end of the same period in 2019 owing to higher cash and bank balances and securities bought under repurchase agreement.
Total assets under management (AUMs) amounted to BD 659.3 million (USD 1.7 billion), decreasing 18% from the BD 808.7 million (USD 2.1 billion) recorded at year-end 2019.
Assets under custody with the Bank’s wholly owned subsidiary, SICO Funds Services Company (SFS), stood at BD 2.6 billion (USD 6.8 billion) at 30 June 2020, decreasing by 8% from BD 2.8 billion (USD 7.4 billion) posted at the end of 2019.
Commenting on SICO’s performance for the first half, Chairman of the Board Shaikh Abdulla bin Khalifa Al Khalifa said: “SICO has demonstrated an outstanding amount of resilience in the face of a consistently challenging environment since the start of the year. While a combination of a global slowdown resulting from the ongoing COVID-19 pandemic, market turmoil and fluctuating oil prices had affected SICO’s investment income during the period, all core business lines delivered a commendable performance. Our track record and clients’ trust in our proven capabilities allowed us to deliver positive returns amidst these challenging conditions and further cemented SICO’s position as a leading regional investment house.”
Also commenting on the results, Chief Executive Officer Ms. Najla Al-Shirawi said: “While our proprietary investment book was negatively impacted by lower valuations owing to steep selloffs across all financial markets, SICO was able to minimize losses thanks to a defensive strategy adopted at the start of the year. In parallel, SICO continued to push forward with its growth efforts across all business lines. Our asset management was successful in securing new mandates while maintaining SICO’s funds outperformance of its regional benchmarks and its leading track record. SICO’s investment banking team has also been awarded several new mandates, most notable was the appointment as Bahrain Receiving Agent, Bahrain Execution Advisor, and Cross-Listing Advisor for Kuwait Finance House’s Offer to acquire 100% of Ahli United Bank. At our brokerage business, we continued to grow our client base trading on behalf of clients’ equities and fixed income securities and instruments in regional and global markets. SICO maintained its position as the leading broker in the Kingdom for 22 years running and the most active market maker.
“Regionally, SICO is currently exploring an opportunity to acquire a majority stake in Muscat Capital, a KSA-based wholly owned subsidiary of Bank Muscat subject to the approval of the regulators in Bahrain and KSA The full-service investment banking firm will further deepen SICO’s presence in the Saudi market and allow it to capitalize on market growth driven by Saudi Arabia’s upgrade to emerging market status on both the FTSE and MSCI indices. Our growth efforts and continued push on strategic initiatives underlie SICO’s ability to further build its fee business revenue streams amid unprecedented global challenges.” Al- Shirawi concluded
During these critical times, SICO expresses its appreciation for the government’s support in both the health and economic sectors. To that end, SICO is proud to meet its social responsibility and has put in place measures to support individuals and businesses most affected by the crisis, including a BD 300 thousand contribution to the “Fina Khair” national campaign.
SICO is listed on Bahrain Bourse (“BHB”) and its code is SICO-C. The press release and the full set of financial statements are available on BHB website.
SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 1.7 bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees three wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialised regional custody house, SICO Fund Services Company (SFS), and a Saudi-based asset management provider, SICO Financial Saudi 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.
© Press Release 2020