Securities and Investment Company (Sico), licensed by the Central Bank of Bahrain as a conventional wholesale bank, has posted a net profit of BD6.85 million ($18 million) for the first nine months of the year, an increase of 110 per cent as compared to the same period last year.

Its operating income grew by 64 per cent to BD11.73 million from BD 7.15 million for the first nine months of the previous year, while its basic earnings per share rose 107.6 per cent to 15.84 fils from 7.63 fils for the similar period last year, said a statement.

The bank’s net profit for the third quarter of the year grew 30 per cent to BD1.77 million, while its operating income rose 27 per cent to BD3.48 million and its basic earnings per share increased 30 per cent to 4.14 fils from from 3.18 fils for the corresponding quarter of last year, it said.

The third quarter witnessed strong contributions by net interest income, net fee and commission income, and brokerage and other income of BD 369,000, BD 826,000 and BD 443,000 respectively to operating income.

Shaikh Abdulla bin Khalifa Al-Khalifa, chairman, said: “I am delighted to report that Sico has continued to produce excellent financial performance despite ongoing market volatility, with substantial increases in operating income and net profit. One notable achievement that should be highlighted is that total discretionary assets under management passed $1 billion during the quarter on the back of Sico’s ability to win new client mandates.

“The board has full confidence in the ability of our high-calibre management team to capture attractive new business opportunities and address all future challenges.”

Meanwhile, Shaikh Abdulla revealed changed to the board of directors. Waleed Al-Braikan has replaced outgoing director Meshari Al-Judaimi and brings with him extensive experience in international and regional investment banking.

Najla M Al Shirawi, chief executive officer, said: “Of particular significance is the 87 per cent increase in fee-based income, which now contributes 44 per cent to total income compared with 38 per cent a year ago. Balanced and diversified revenue generators will enable Sico to better withstand continued market volatility.

“The bank’s proprietary book also continued to perform well, with a 66 per cent growth in net investment income. This is due to our tactical asset allocation and disciplined risk management approach.”

The bank also continued to maintain a strong capital base, ending the period with shareholder’s equity of BD64.9 million, and a strong consolidated capital adequacy ratio of 62.77 per cent, said the statement.

“Looking ahead, from now to the year end, we expect volatility levels to be elevated on the back of a long bull run in equities, which stretched earnings multiples to record levels while most markets are going through moderating earnings growth,” said Shirawi.

“Nevertheless, we still relatively prefer equities over fixed income. We believe that in the fourth quarter uncertainty will dominate financial markets, with the ending of the Fed’s QE program and the tightening schedule being data driven. From our perspective in the region, the stability of oil prices is a key factor for the markets to settle and to be re-evaluated in light of the new oil prices range,” she added. - TradeArabia News Service