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 final quarter and full year ended 31 December 2019.
On a quarterly basis, SICO’s consolidated net profit for the fourth quarter of 2019 was BD 2.5 million, marking a 457% increase compared to BD 441 thousand from the same quarter in 2018. The bank’s net operating income recorded BD 5.3 million in the fourth quarter of the year, increasing by 121% from BD 2.4 million in the last quarter of 2018. Total operating expenses for the final quarter of 2019 were BD 2.9 million versus BD 1.9 million recorded in the same quarter of last year. EPS for Q4 in 2019 were 6.65 Bahraini fils compared to the 1.19 Bahraini fils recorded in the fourth quarter of 2018. Total comprehensive income for the fourth quarter of 2019 increased by 646% to BD 2.8 million from the BD 369 thousand recorded in Q4 of 2018.
SICO saw its consolidated net profit for the year increase by 63% to BD 6.0 million from the BD 3.7 million recorded at the end of 2018. The bank recorded a 36% increase in net operating income at BD 14.6 million in 2019 from BD 10.7 million in the previous year. Total operating expenses, including general administration expenses, staff overheads, and other expenses, recorded BD 8.5 million at the end of 2019 versus BD 6.7 million in the same period of 2018. Earnings per share (EPS) for 2019 came in at 16.32 Bahraini fils, an increase by 63% from the 10.01 Bahraini fils recorded at year-end 2018.Total comprehensive income grew by 81% from the BD 3.8 million recorded at the end of 2018 to BD 6.8 million in 2019.
Growth during 2019 was driven primarily by an increase in the bank’s net fee income, which grew by 51% to BD 6.3 million from the BD 4.2 million recorded at the end of 2018. Additionally, net investment income witnessed a 41% increase from BD 3.1 million at the end of 2018 to BD 4.3 million at year-end 2019, further driving growth for the bank.
Total shareholders’ equity as at 31 December 2019 amounted to BD 59.4 million representing an increase of 7% over BD 55.7 million as recorded at year-end 2018.
Total Assets under Management (AUMs) amounted to BD 808.7 million (US$ 2.1 billion) as of 31 December 2019, increasing by 16% compared to BD 699.1 million (US$ 1.9 billion) at year-end 2018, as SICO continued to be the asset manager of choice for its clients.
Total assets under custody with the Bank’s wholly owned subsidiary, SICO Funds Services Company (SFS), were BD 2.8 billion (US$ 7.4 billion) at 31 December 2019, increasing by 20% from BD 2.3 billion (US$ 6.2 billion) recorded at year-end 2018.
SICO’s total balance sheet footings recorded BD 166.8 million at year-end 2019, increasing by 23% from the BD 135.3 million recorded at year-end 2018, resulting primarily from increased assets, particularly cash and bank balances as well as securities and other assets. Consolidated capital adequacy ratio for the bank came in at a healthy 63.57% at the close of 2019.
SICO’s Board of Directors has recommended a cash dividend of 10% of the share capital, equivalent to 10 Bahraini fils per share subject to the approval of the Central bank of Bahrain and the General Assembly.
The external auditors, KPMG have issued an unqualified opinion on the financial statements for the year ended 31 December 2019.
Chief Executive Officer Ms. Najla Al-Shirawi reported: “SICO was successful in capturing positive business trends during the year, further developing our comprehensive suite of services and delivering a strong set of results. Key highlights of the year included new asset management mandates, introduced while maintaining SICO’s overall performance and track record in this space. On the investment banking front, SICO won several new mandates advising on the execution of high-profile transactions, the most notable being the acquisition of Bahrain Islamic Bank by the National Bank of Bahrain, one of the country’s largest transactions to date. Meanwhile, SICO continued to broaden the client base at its market-making and brokerage businesses, attracting new clients in the UAE and Bahrain. SICO has been Bahrain’s most active market-maker and the Kingdom’s number one broker for 21 years. I am also pleased to report that with the establishment of an asset management subsidiary in KSA, SICO Financial Saudi Company. The venture will strengthen our position in the region’s largest market for asset management services, allowing SICO to capitalize on market growth driven by Saudi Arabia’s upgrade to emerging market status on both the FTSE and MSCI indices.”
“With a solid presence in three GCC markets including KSA, the region’s largest market, we are confident that SICO is now well-positioned to capitalize on new opportunities. We are heading into 2020 geared for growth and larger mandates with a strong earnings upside as we expand our presence beyond our borders.”
The press release and the full set of financial statements will be available on the Bahrain Bourse website.
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About SICO
SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 2.1 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.
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