Manama, Kingdom of Bahrain –: SICO BSC (c), licensed by the Central Bank of Bahrain as a conventional wholesale bank, today reported a significant increase in net profits to BD 2.9 million for the nine month period ended 30 September 2017. This compares with a restated profit of BD 886 thousand for the corresponding period last year. The restatement to the 2016 figures was warranted due to the adoption of IFRS 9 accounting standard and the impact of this restatement amounted to BD 949 thousand for the nine month period ended 30 September 2016. Steady growth across business lines and strict control over expenditures allowed the bank to recover from a difficult and volatile year. Total income for the period ended 30 September 2017 increased 59 per cent to BD 7.9 million compared with BD 4.9 million for the corresponding period in 2016, fueled by growth in fees, brokerage revenues and interest income. Meanwhile, basic earnings per share increased to 7.02 Bahraini fils versus 2.15 Bahraini fils for the corresponding period last year.
SICO posted a BD 811 thousand net profit for the third quarter of 2017, a 9 per cent decrease from the restated net profit of BD 894 thousand reported during the same period last year. Higher revenues across almost all business lines resulted in a 23 per cent increase in total income to BD 2.6 million from BD 2.1 million in the third quarter of 2016. Total operating expenses, which include staff overheads, general administration and other costs, increased to BD 1.5 million for the period compared with BD 1.3 million for the third quarter of 2016. Basic earnings per share decreased to 1.97 Bahraini fils compared with 2.17 fils for the third quarter of 2016.
Chairman of the Board, Shaikh Abdulla bin Khalifa Al Khalifa said: “Leveraging our market leading position in the Kingdom of Bahrain, SICO continues to grow its business region-wide and recover from a very challenging 2016. Despite continued market volatility and weak performance felt across all GCC markets, most of our business lines remain on a growth trajectory, increasing their respective contributions to our overall performance. Revenue growth remains healthy signaling strong end of year results to come.”
As at 30 September 2017, total balance sheet footings stood at BD 155.8 million compared with BD 147.1 million at the end of 2016. Assets under management increased by a healthy 21% to BD 479.41 million (US$ 1.3 billion) from BD 395.9 million (US$ 1.1 billion) at the end of the previous year. Assets under custody with the Bank’s wholly-owned subsidiary, SICO Funds Services Company (SFS) grew by 12% from BD 1.9 billion (US$ 5.2bn) as at December 2016 to BD 2.2 billion (US$ 5.8bn). SICO continued to maintain a strong capital base, ending the period with a shareholders’ equity of BD 59.25 million (end-2016: BD 58.08 million), and a very strong consolidated capital adequacy ratio of 46 per cent.
Chief Executive Officer, Ms. Najla Al Shirawi said: “The majority of GCC markets, with the exception of Dubai, ended lower in a rather volatile third quarter, with the Doha market being the worst performer, falling 8 per cent from the previous quarter. Market turnover in some key markets such as Saudi and Dubai continued to be weak but the region benefited from the price of Brent Crude increasing by 20 per cent quarter on quarter, with a late spike in September following tensions in the Kurdish region.”
She added: “As for developments within SICO, Q3 was the first full quarter of business for our new MENA-wide online brokerage service, sicolive, which has revolutionised our product mix. This real time online platform combines brokerage, cash management and custody services, along with access to SICO’s research unique market insight .Our experienced analysts cover over 90 per cent of major GCC-listed companies, making the platform an important avenue for growth going forward as our clients across the region become used to the empowerment it offers them.”
Ms. Al Shirawi pointed towards the contributions SICO is making to two important Bahraini developmental initiatives which saw significant progress during the quarter. SFS signed an agreement with Bahrain Development Bank (BDB) to provide custody, fund administration and registrar services for their new fund, Al Waha Venture Capital Fund Company. This specialised small and medium-sized enterprise (SME) fund was established in cooperation with the Economic Development Board (EDB). Meanwhile, SICO continues to be the sub-investment manager and dedicated market maker for the Eskan Bank Realty Income Trust, which offers an attractive target of 6.5 per cent in net distributable income payable semi-annually. The REIT, which recently became open to expatriates and foreign investors, supports Eskan Bank’s housing development projects which are helping provide Bahrainis with high quality subsidised homes.
“SICO is happy to lend its competitive advantages to the development of the Kingdom of Bahrain’s SME sector and housing infrastructure through such initiatives, which also help spur business activity and attract international investment to the country,” Ms. Al Shirawi added.
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Media Contact:
Ms. Nadeen Oweis
Head of Corporate Communications
Securities & Investment Company (SICO)
Direct Tel: (+973) 1751 5017
Email: nadeen.oweis@sicobahrain.com
