Monday 21 May 2018
 
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Sico posts 8pc jump in Q1 net profit

MANAMA, 10 days ago

Sico, a leading regional asset manager, brokerage, and investment bank (licensed as a conventional wholesale bank by the CBB), said its net profit for the first quarter surged by 8 per cent to hit BD1.42 million ($3.74 million) compared to last year's BD1.32 million ($3.4 million).

Announcing the results for the first three months, Sico said with higher revenues being generated by all business lines, operating income grew by 16 per cent to hit BD3.2 million from BD2.7 million last year.

Total operating expenses, which include staff overheads, general administration and other expenses, too increased to BD1.78 million from BD1.43 million. Earnings per share increased to Bahraini fils 3.85 compared to 3.19 fils for the first quarter of 2017, said the statement.

On the solid results, Shaikh Abdulla bin Khalifa Al Khalifa, the chairman of the board, said: "Sico has shown continued good performance in the first quarter of the year, reflecting clients’ confidence in the Bank to deliver results."

"Our core business lines posted significant growth in revenues and increased their respective contributions to the performance. Sico continues to utilise its market insight and regional knowledge to seek business expansion opportunities in high growth markets in line with its strategic plans and we look forward to another successful year," he noted.

The results reflect an increase in net investment income, which closed the period at BD1.42 million over last year's BD1.22 million, said the statement from Sico.

Brokerage and other income stood at BD716,000 over last year's BD541,000, while the net fee income soared to BD828,000 from BD718,000 dueing the first quarter, and interest income marginally grown to BD440,000 from BD424,000.

As of March 31, 2018, Sico's total balancesheet stood at BD126.9 million compared to BD131.3 million at the end of 2017. Assets under management have grown significantly to BD658.28 million ($1.75 billion) from BD465.37 million ($1.23 billion), representing 41.5 per cent growth in comparison to 2017 year-end balance.

CEO Najla Al Shirawi said: "Despite a mixed performance across the GCC markets and low turnover, Sico’s business lines enjoyed an active first quarter. The bank reinforced its leading position in asset management with AUM continuing to grow quarter on quarter, reflecting clients’ enduring trust in Sico’s ability to outperform in different and complex market conditions."

"Brokerage and Investment Banking maintained their leading market dominance, with brokerage arranging and executing significant transactions in the first quarter, and Investment Banking winning new private and public mandates which we expect to close later in the year," she stated.

Al Shirawi pointed out that Sico continued to expand its client base for market making services with Bank ABC appointing it as the designated market maker with respect to Bank ABC’s ordinary shares listed on the Bahrain Bourse.

This market making arrangement aims to inject more market liquidity, thereby assisting any shareholders who want to buy or sell Bank ABC shares to do so, she explained.

"During this period, Sico rolled out its new name and brand identity, which reflect both our heritage and our new reality as a progressive, forward thinking organisation," said Al Shirawi.

"We are confident that Sico’s new corporate identity will amplify and broaden our appeal in the marketplace, which will support the Bank’s future growth as we expand to offer a wider client base a progressive suite of products and services that cater to their specific and evolving investment needs," she added.-TradeArabia News Service




Tags: Bahrain | Sico | Net Profit |

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