Securities & Investment Company (SICO), licensed by the Central Bank of Bahrain as a conventional wholesale bank, announced its financial results for the second quarter of 2014 and the first six months of the year.
Net profit for the first half of 2014 increased by 166% to BD5.1m ( H1 2013 : BD1.9m) ; while operating income grew by 87% to BD8.2m( H1 2013 : BD4.4m). Basic earnings per share rose from Bahraini fils 4.5 to 11.8 fils.
For the second quarter of 2014, net profit increased to BD2.5m (Q2 2013: BD901 thousand); while operating income rose by 86% to BD4.0m (Q2 2013: BD2.2m). Basic earnings per share rose from Bahraini fils 2.1 for Q2 2013 to 5.8 fils for Q2 2014.
Interest income, net fee & commission income, and brokerage & other income during the second quarter of 2014 contributed to operating income by BD327 thousand, BD1.6m and BD829 thousand, respectively; while net investment income contributed BD1.3m. Total operating expenses for the period were BD1.4m.
Year to date, brokerage and other income has increased by 129% to BD1.6m( H1 2013 : BD685 thousand). Investment income grew by 94% to BD3.7m ( H1 2013 : BD1.9m), and net fee & commission income increased by 108% to BD2.3m( H1 2013 : BD1.1m); while interest income declined slightly to
BD657 thousand from BD702 thousand reported for same period last year.
For the first six months of 2014, total operating expenses, which include staff overheads, Interest Expense and general administration & other expenses, rose moderately to BD2.9m, compared with BD2.4m for the corresponding period in 2013. As at 30 June 2014, total balance sheet footings had decreased slightly to BD93.3m from BD94.2m at the end of 2013. Assets under management grew by 13.6% to BD360m ($955m) from BD317m ($840m) at the end of the previous year, while assets under custody with the Bank’s wholly-owned subsidiary – SICO Funds Services Company (SFS) – grew by 31% from BD1.3bn ($3.4bn) to BD1.7bn ($4.5bn).
Commenting on these results, Sheikh Abdulla bin Khalifa Al Khalifa, Securities & Investment Company’s Chairman, said, “Our financial results for First half of 2014 reflect the encouraging growth recorded by all of the Bank’s business lines, and the receipt of new mandates in the areas of discretionary portfolio management, agency brokerage, corporate finance, and custody and administration.”
Ms. Najla M. Al Shirawi, Chief Executive Officer of Securities & Investment Company, adde, “Despite the GCC equities sell-off during June amid worries about speculative bubbles and the overheated property sector in Dubai, net profit for the first six months rose by 166% to BD5.1m (H12013: BD1.9m), which equals the net profit reported for the whole of 2013. All core business areas generated strong revenues, with fee-based income revenue reaching BD3.9m, which is the highest quarterly fee-based revenue achieved since 2007. Total assets under management increased to a record $955m, surpassing the highs recorded before the financial crisis of 2008 by 57%.”
The Bank continued to maintain a strong capital base, ending the first six months of the year with increased shareholders’ equity of BD62.9m. The balance sheet remains highly liquid, with a very strong consolidated capital adequacy ratio of 70.55%. The available-for-sale securities portfolio at the end of June 2014 decreased in size to BD31.1m from BD32.7m at the end of 2013. Similarly, investments at fair value through profit or loss decreased to BD15.9m from BD19.8m at the end of the previous year, as part of the Bank’s tactical asset allocation.
Looking ahead, Ms Al Shirawi, said, “We are pleased with the continuation of our strong results, which demonstrates the capability of the SICO team to create value for shareholders and clients by capitalizing on opportunities arising from market recovery and higher prospects for the economy. We have enjoyed bullish rallies in both Equities and Fixed Income in the first half of the year, however we do not expect the stockmarkets’ exceptionally strong performance during the first six months of the year to be repeated in the second half of 2014. We also expect the positive momentum in fixed income to slow down or stay range bound for the rest of the year, as concerns about the pace of global economic growth that drove investors to safe-haven assets in the first quarter of 2014, subside during the second half of 2014.”
“Nevertheless, our different business lines give SICO significant room for additional revenues, with a healthy pipeline of mandates and transactions in the areas of asset management, brokerage and corporate finance. We have a positive outlook for the rest of the year, barring of course, any unforeseen events. At the same time, we continue to remain focused on prudently managing our capital and cost structure,” she added.
For more info please contact:
Securities & Investment Company (SICO)
Tel: +973 1751 5000
Dir: +973 1751 5017
Fax: +973 1751 4443
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