Bahrain-based regional investment bank Securities and Investment Company (Sico) saw net profit rise 71 per cent in the first half of the year to BD1.92 million ($5.06 million) from BD1.12 million in the first six months of 2012.

Operating income grew by 26 per cent to BD4.4 million from BD3.5 million last time and basic earnings per share rose to 4.49 fils from 2.63 fils, reported the Gulf Daily News, our sister publication.

In the second quarter of the year, net profit improved to BD900,000 compared with a loss of BD457,00 in the second quarter last year.

Second-quarter income rose to BD2.13 million compared with BD699,000 for the corresponding period for 2012.

Basic earnings per share rose to 2.1 fils against a loss of 1.07 fils last time.

Net interest income, net fee and commission income, and brokerage and other income during the second quarter contributed BD340,000, BD547,000 and BD455,000 respectively to operating income while net investment income contributed BD783,000.

Total operating expenses for the period were BD1.22 million.

As of June 30, total balance sheet footings increased by 21 per cent to BD94.96 million from BD78.45 million at the year-end.

Assets under management grew by 14 per cent to BD257 million from BD226 million at the year-end, reflecting the continued strong performance by Sico's asset management business.

Assets under custody with the bank's wholly-owned subsidiary, Sico Funds Services company, grew by 50 per cent to BD1.24 billion from BD824 million at the end of 2012.

Year-to-date, brokerage and other income have increased by more than 70 per cent to BD685,000 from BD402,000 last time.

Net investment income grew by 35 per cent to BD1.92 million from BD1.42 million.

Net interest income and net fee and commission income improved some extent to BD655,000 and BD1.11 million respectively.

Total operating expenses, which include staff overheads, general administration and other expenses, were BD2.39 million compared with BD2.2 million for the corresponding period in 2012.

"International and regional markets started the year on a positive note, with confidence levels increasing as a result of a brighter global economic outlook, particularly in the GCC and the US and a belief that euro-land has seen the worst," said Sico chief executive Anthony Mallis.

"However, volatility in the global fixed income and equity markets, which started in May and culminated in June, impacted the second-quarter's results through losses in our trading book, which is marked-to-market, and thus impacts the income statement.

"Overall the trading activities for the second quarter were substantially profitable.

"It is particularly encouraging that all core business areas contributed to the bottom line, with 35 per cent of revenues coming from non-trading activities," he added.

Sico continued to maintain a strong capital base, ending the first six months of the year with shareholders' equity of BD57.2m and a strong consolidated capital adequacy ratio of 59.65 per cent.

The bank currently has 40.6 per cent of its balance sheet in cash and deposits, compared with 41.5 per cent at the end of 2012.

Mallis highlighted a number of important operational and marketing developments during the first half of the year.

These include strengthening Sico's management team with the appointment of Najla Al Shirawi to the newly-created position of deputy chief executive. Additionally, Sico's new core banking system first and most important phase became fully and successfully operational during the earlier part of the year.

The bank also enhanced its status as a leading institutionally focused GCC public markets asset manager with receipt of the highest Middle East and North Africa equity fund gradings from S&P Capital IQ and the launch of a new Sico Fixed Income Fund, which has been listed on the Bahrain Bourse.

"We expect the positive momentum to continue for the rest of the year, with increased revenues in the areas of asset management, brokerage and corporate finance," Mallis said.

"International investors are beginning to take a greater interest in the GCC, which we believe will be beneficial to our business. There is an attractive pipeline of transactions and mandates that are materialising in the third quarter of this year," he added. – TradeArabia News Service