Bahrain-based Securities and Investment Company (Sico) posted a net profit of BD3.785 million ($10 million) for last year compared to BD3.078 million at the end of 2009, an increase of 23 per cent.

'The financial markets remained volatile during the year; however by the second half of the year the firm benefited from buoyant global and GCC equity and fixed income trading conditions,' a spokesman for the company said. 'As a result, trading revenues and investments at fair value both increased substantially.'

Net investment income increased to BD2.968 million from just BD795,000 the previous year. Net interest income during the year decreased to BD1.5 million, down from BD1.7 million last time.

Fee and commission income declined to BD2.3 million from BD2.4 million and brokerage and other income fell to BD1.14 million from BD1.5 million reflecting the low cost interest environment, the dearth of capital and debt raising opportunities and a reduced share turnover in the GCC's equity markets.

Operating income increased by 23.3 per cent to BD7.8 million from BD6.4 million with earnings per share growing to 8.9 Bahraini fils versus 7 fils for 2009.

Client fee generated income represented 29.2 per cent of the operating income for the year. Assets under management increased by 33.6 per cent to BD 201 million from BD150.5 million.

Total expenses, which include, staff overheads, general administration and other expenses increased by 23.5 per cent to BD4 million.

The proposed dividend payout to shareholders is 6 per cent of the par paid-up capital against 5 per cent the previous year.

The firm continued to invest in the business, ensuring that it is well-positioned for the future recovery in the GCC markets, while continuing to aggressively manage costs. Staff numbers were maintained at 2009 levels.

'In a relatively difficult and volatile year, in which Sico significantly out-performed its regional peers, our firm was able to surpass by a margin the gains made in 2009,' said chairman Shaikh Mohammed bin Isa Al Khalifa.

'The firm continued maintaining a positive but also cautious stance in its businesses, while concurrently maintaining its levels of investing in human resources and operational capabilities, and positioning itself for the coming growth phase in the regional markets.'

'Sico's solid financial results underscore the continued effectiveness of Sico's consistent strategy and prudent management principles based on product and asset diversification,” he added.

'It also highlights the dedicated commitment of the firm's team to deliver high quality and innovative services with the utmost integrity and confidentiality, to retain the confidence and loyalty of our clients, while continuing to set a benchmark in their respective areas of operation,” Al Khalifa concluded. – TradeArabia News Service