SICO BSC (c), a leading regional asset manager, broker, market maker and investment bank (licensed as a wholesale bank by the CBB), announced today that it concluded on 24 March 2020 its Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM) where 94.80% of the shareholders approved the items in the AGM and EGM agendas including the Board of Directors’ proposed distribution of BD 3.899 million in cash dividends for the financial year ended 31 December 2019 (10% of the nominal share value), representing 10 Bahraini fils per share. Shareholders also approved the transfer of BD 603 thousand to the statutory reserve and the remaining sum of BD 1.532 million to the retained earnings account.
SICO, with less than ten shareholders, elected to conclude the meeting via agenda circulation, with shareholders casting their votes on each agenda item, in order to fulfill its ethical responsibility to its stakeholders, by adopting recommendations issued by the Ministry of Health as well as supporting the Kingdom of Bahrain’s efforts to contain the spread of COVID-19.
Shareholders also reviewed the Board of Directors’ report on the bank’s activities along with the external auditor’s report on consolidated financial statements for the year ended 31 December 2019. The chairman commended the bank’s 2019 performance, particularly SICO’s outstanding financial results across all business lines.
SICO reported a full-year consolidated net profit of BD 6.0 million in 2019, up 63% compared to the BD 3.7 million recorded in 2018. Its total comprehensive income grew 81% from BD 3.8 million in 2018 to BD 6.8 million in 2019. Net profit growth for the year was driven by higher revenues and improved operational performance across all business lines. Total assets under management (AUM) 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, while total shareholders’ equity after appropriation of the statutory reserve stood at BD 59.4 million at year end. SICO also achieved a robust consolidated capital adequacy ratio of 63.57%.
The AGM elected by acclamation a new board, whose members include Shaikh Abdulla Bin Khalifa Al Khalifa, Khurram Mirza, Dana Raees , Abdulla Kamal , Hisham AlKurdi , Mohamed Abdulla, Naseema Haidar, Khalid Al Jassim and Tala Fakhro , subject to the approval of the Central Bank of Bahrain (CBB), and ratified the appointment of Shaikh Abdulla Bin Khalifa Al Khalifa,Khurram Mirza, Dana Raees and Abdulla Kamal as board members representing the Social Insurance Organization (SIO) and Hisham AlKurdi representing National Bank of Bahrain . The appointments were made by shareholders owning at least 10% of the bank’s share capital.
Earlier this month, SIO acquired an additional 13.22% of paid-up capital from two of SICO’s existing shareholders, Gulf Investment Corporation GSC and Investcorp Holdings BSC, bringing SIO's total ownership in SICO to 50.38% in paid-up capital.
At the EGM, shareholders approved the establishment of a new subsidiary in the Kingdom of Saudi Arabia, SICO Financial Saudi Company, to undertake activities including the management of private non-real estate investment funds (PFM) and sophisticated investor portfolios (SPM). SICO received a license from the Saudi Capital Markets Authority (CMA) in November 2019 to offer asset management services in the kingdom.
SICO’s Chairman Shaikh Abdulla bin Khalifa Al Khalifa expressed his gratitude to the board members that served their final term with SICO and welcomed the bank’s new board members. SICO’s board members along with CEO, Najla Al-Shirawi, thanked the Ministry of Industry, Commerce and Tourism, the Central Bank of Bahrain, and the Bahrain Bourse for the support and assistance they have offered the bank since its establishment. They also extended their gratitude to all regulatory parties in the countries where SICO operates; the bank’s shareholders and clients for their continuous support; and SICO’s employees for their hard work, dedication, and loyalty, which form the foundation of the bank’s achievements.
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 (under formation). 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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