Shaikh Abdulla bin Khalifa Al Khalifa and Najla Al Shirawi.
Sico delivers solid performance for 2021; net profit up 116pc
MANAMA, February 22, 2022
Sico, a leading regional asset manager, broker and investment bank in Bahrain, has reported a net profit of BD6.4 million ($17 million) for FY 2021, up 116% compared to BD3 million ($7.8 million) recorded the year before.
Announcing its consolidated results for the year ended December 31, 2021, Sico said its comprehensive income attributed to shareholders increased by 142% to BD7.1 million ($18.8 million) in 2021 compared to BD2.9 million ($7.7 million) for 2020.
Its earnings per share increased by nearly 100% to 15.96 Bahraini fils during the year from 8.00 Bahraini fils in 2020.
According to Sico, the total equity attributed to shareholders increased by 18% to BD69 million ($183 million), compared to the BD58.3 million ($155 million) recorded on 31 December 2020.
The increase reflects the strong increase in net profit for 2021, as well as Sico's liquidation of its treasury shares through the share-swap acquisition of Muscat Capital (rebranded as Sico Capital).
Total assets increased by 45% to BD263.5 million ($699 million) compared to BD181.8 million ($482.2 million) on December 31, 2020. The expansion in Sico’s asset footing was attributable to the consolidation of Sico Capital following the acquisition in March 2021.
Asset growth was further driven by an increase in securities bought under repurchase agreements, as well as an increase in cash and bank balances during the year, it stated.
On a quarterly basis, SICO’s consolidated net profit attributable to shareholders increased by 120% in Q4 to hit BD2.7 million ($7.3 million), compared to BD1.2 million ($3.3 million) the previous year.
Earnings per share increased to 6.77 Bahrain fils in Q4 2021 from 3.37 Bahraini fils the year before. Total comprehensive income attributed to shareholders increased by 76% to BD3 million ($8 million) compared to BD1.7 million ($4.6 million) in 2020.
Based on this strong performance, Sico’s board of directors has recommended a dividend of 8% of the share capital, (5% cash dividends and 3% stock dividend ), aggregating to BD3.4 million ($9.1 million) subject to the approval of the Central Bank of Bahrain and the General Assembly.
Commenting on the solid performance, Chairman Shaikh Abdulla bin Khalifa Al Khalifa said: "Sico has successfully implemented its growth strategy in the face of the challenges brought about by the pandemic, capturing opportunities presented by the recovery and burnish its reputation as a leading financial service provider in the region."
"The growth in assets under management exceeded our expatiations during the year, proving our ability to successfully leverage our core strengths to drive solid growth and deliver value to our stakeholders," he stated.
CEO Najla Al Shirawi said: "Sico has efficiently capitalised on the year’s recovery in global and regional markets to drive impressive growth in income and AUMs. The asset management division delivered strong growth in net fee income, while Sico’s brokerage team retained its first place on the Bahrain Bourse."
"On the other hand, our investment banking division had another successful and active year, during which they were involved in many transactions including the structuring and closing of our first acquisition in Saudi Arabia," stated Al Shirawi.
She pointed out that this regional expansion was Sico's greatest achievement of the year and had been repaid with a strong performance at Sico Capital since acquisition.
"Moving forward, we are confident that Sico possesses the talent, reputation, and regional presence required to optimally deploy our capabilities and go from strength to strength across our lines of business," she added.
Strong performance across Sico's lines of business maintained the bank’s growth momentum throughout the year, with a further boost from strong results at Sico Capital.
The bank recorded net investment income of BD4.4 million ($11.8 million) in 2021, a substantial increase of 98% compared to the BD2.2 million ($5.9 million) booked in the prior year. Net fee income increased by 142% to BD8.8 million ($23.2 million) in 2021 compared to the BD3.6 million ($9.6 million) booked one year previously.
Meanwhile, net interest income booked BD 1.8 million ($4.9 million) for the year, an increase of 27% from the BD 1.4 million ($3.8 million) recorded in 2020. Brokerage and other income recorded BD 2.7 million ($7.1 million) in 2021, compared to BD 3.2 million ($8.6 million) booked in 2020.
Brokerage income continued to perform well and was able to offset the decrease in fixed income trading by robust equities trading in 2021, while other income came lower in 2021 compared with prior year, due to a decrease in net FX income and a one-off income booked in 2020.-TradeArabia News Service
