Sico, a conventional wholesale bank, has reported a net profit attributable to shareholders of BD3.6 million ($9.4 million) for 2022 full-year (FY), a 44% drop compared to BD6.4 million recorded in 2021. 

 

Net profit for the year was primarily supported by strong growth in other interest income, coupled with solid brokerage and net fee income for the year, despite lower investment income due to wide market sell-offs. 

 

Earnings per share recorded 8.45 Bahraini fils in 2022, down from 15.18 Bahraini fils in 2021. Sico’s comprehensive income attributable to shareholders stood at BD3.2 million ($8.5 million) in 2022, compared to BD6.9 million ($18.4 million) in 2021, representing a 54% decline.

 

Fourth quarter

On a quarterly basis, Sico recorded consolidated net profit attributable to shareholders of BD742,000 in the fourth quarter of 2022 compared to the BD2.7 million recorded in the final quarter of the previous year, a 73% year-on-year decline. Lower net profitability for the three-month period came principally on the back of lower investment income and a reduction in performance fees. 

 

Earnings per share were 1.78 Bahraini fils in the fourth quarter of 2022, compared to 6.50 Bahraini fils in the same period last year. Sico reported a total comprehensive income attributable to shareholders of BD799,000 compared to BD2.8 million in the same quarter of 2021, representing a 71% decline.

 

Total equity attributed to shareholders was at December 31, 2022 increasing by 1.6% to BD70 million from the BD69.0 million recorded as at year-end 2021. Meanwhile, total assets as at year-end 2022 rose 6% to BD280 million compared to BD263.5 million as at December 31, 2021. 

 

5% dividend

Based on this performance, Sico’s Board of Directors has recommended a dividend of 5% of the share capital, aggregating to BD2.207 million subject to the approval of the Central Bank of Bahrain and the General Assembly.

 

The external auditors, KPMG, have issued an unqualified opinion on Sico’s financial statements for the year ended December 31, 2022.

 

Sico recorded net investment income of BD1 million in 2022, a 77% drop from the BD4.4 million recorded in the prior year. Net fee income for the year declined 5% to BD8.3 million compared to BD8.8 million registered in 2021. 

 

Lower fees income for the twelve-month period reflected a decline in performance fees versus the prior year. Meanwhile, Net interest income saw a 43% year-on-year increase to BD2.6 million in 2022. Finally, brokerage and other income recorded BD2.5 million compared to BD2.7 million in 2021.

 

Assets under management

Sico’s assets under management (AUMs) witnessed growth during the year, on the back of new offerings and services expansions. On a gross basis (including leverage), Sico’s total AUMs increased by 6% to BD1.8 billion in 2022 compared to the BD1.7 billion recorded on December 31, 2021. On a net basis (excluding leverage), total AUMs increased by 2% to BD1.6 billion in 2022, compared to the BD1.5 billion recorded on December 31, 2021. 

 

Chairman of the Board, Shaikh Abdulla bin Khalifa Al Khalifa, commented on Sico’s performance for the year saying: “At Sico, we are well-equipped to weather the market cyclicality that is inherent to our business. This was evident throughout 2022, as we successfully leveraged our extensive experience, diversified offering, and resilient, growth-oriented business model, to achieve solid financial results, whilst progressing on our longer-term value creation strategy. 

 

“As part of the latter, during the past twelve months we enriched our offering, initiating new services and solutions increasingly tailored to our clients’ evolving needs. Over the past year, we were also successful in increasing our AUMs, which over the years have enabled us to retain our market leading position in an increasingly competitive industry.”

 

Strategic milestones

Chief Executive Officer, Najla Al-Shirawi, added: “Despite the unprecedented difficulties faced by global markets in 2022, Sico ended the year maintaining its solid profitability and leading market position in the regional investment banking, brokerage, and asset management spheres. Over the past twelve months, we also achieved multiple strategic milestones which leave us ideally placed to drive new growth in the coming year. 

 

“Most importantly, we completed the consolidation of Sico Capital in Saudi Arabia as a fully owned subsidiary of Sico by purchasing the remaining stake from Bank Muscat. We also launched our new trading platform, Sico LIVE Global, which offers users access to direct equities, including liquid alternatives, from over 25 exchanges across both developed and emerging markets.”

 

“Looking forward, we will continue to capitalise on the superior quality of our offerings and our strong team, expanded footprint, and robust balance sheet to deliver sustainable growth in 2023 and beyond,” Al-Shirawi concluded.-- TradeArabia News Service