Bahrain-based Securities and Investment Company (Sico) earned a net profit of BD538,000 ($1.4 million) for the third quarter of the year, a positive improvement on its loss of BD863,000 for the corresponding period in 2011.

For the first nine months of the year net profit was BD1.597 million against a loss of BD364,000 in the same period the previous year, said a report in our sister publication, the Gulf Daily News.

Net interest income during the third quarter accounted for 20.36 per cent of total income, while net fee and commission income contributed 32.98 per cent while brokerage and other income contributed 8.32 per cent and net investment income 38.34 per cent.

Year-to-date, net interest income, net fee and commission income and brokerage and other income contributed BD933,000, BD1.669 million and BD544,000 respectively to the operating income, while net investment income was BD1.984 million.

"The financial and investment environment continues to be challenging both in the GCC and generally in the global markets," said chief executive Anthony Mallis.

"Heightened volatility and uncertainty remain the order of the day, leading to a substantial fall in GCC stock market volumes.

"While the investment business in general has been muted, the debt market is increasingly being recognised as an alternative source of borrowing and asset allocation throughout the region.

"In response to this trend, we were able to actively establish ourselves as a leading Bahrain-based regional player in the fixed income space," he said.

"Another successful accomplishment during the period was the launch of our UAE subsidiary operation - Sico UAE - which is now fully operational and trading on both the Abu Dhabi and Dubai exchanges, and from which we anticipate healthy growth in the future.

"In addition, the asset management business continues to grow and deliver excellent performance, adding fixed income investment management to its scope with considerable potential," he said.

"Our equity management expertise is well recognised both regionally and globally as a market leader," Mallis added.

Increased activity by Sico's asset management business resulted in funds under management growing by 8.3 per cent from the end of 2011 to BD223.285 million, while securities under custody with Sico's wholly-owned subsidiary Sico Funds Services Company were BD877 million.

"We are delighted to be able to announce a respectable performance in the third quarter of 2012," added Mallis.

"The achievement underscores the continued effectiveness of Sico's strategy and sensible management principles based on product and asset diversification. Our clients continue to place significant value on our services.

"While it remains difficult, if not impossible, to predict what will happen in the short-term with any degree of accuracy and certainty, there is no doubt that the rest of the year will be extremely challenging," he said.

"Until we see greater clarity, Sico will continue to stay on track, focus on what we do best and try to do it better, always acting in the interests of our clients, shareholders and employees," he added. – TradeArabia News Service