Securities and Investment Company (Sico), licensed by the Central Bank of Bahrain as a conventional wholesale bank, has posted a net profit of BD2.3 million ($6 million) for the nine month ending September 30, compared to BD6.8 million during the same period, down 66 per cent.

 

The fall was mainly due to the volatility in regional and global markets, impacting in particular Sico’s proprietary book performance during the third quarter this year compared to the markets strong performance for the same period of last year, said a statement.

 

The total income was BD6.7 million versus BD11.7 million for the first nine months of the previous year, around 42 per cent lower. 

 

Meanwhile, Sico reported a net loss of BD1.2 million for the third quarter of the year, compared with a net profit of BD1.7 million during the same period last year, reflecting the mark-to-market losses incurred by Sico's proprietary book.

 

The total income was a negative BD16,000 compared to BD3.5 million the previous year.

 

Shaikh Abdulla bin Khalifa Al Khalifa, chairman, said: “Despite the third quarter of 2015 proving to be considerably more challenging and volatile than had been predicted, SICO was successful in maintaining profitability for the first nine months of the year. 

 

"Given the significantly more favourable economic and market background during the corresponding period in 2014, we view this as an encouraging performance, albeit below our earlier expectations.”

 

Najla M Al Shirawi, chief executive officer, said: “During this period, all GCC markets performed dramatically lower than the corresponding period in 2014, when the S&P Composite Index gained 22 per cent compared with a negative 12 per cent for the first nine months of 2015. Liquidity also dried up in GCC markets, with the average daily market turnover in US dollars declining between 40 and 50 per cent quarter-on-quarter across all markets, as investors became more risk averse and turned away from equities as an asset class. 

 

"Oil prices fell by more than 30 per cent from second quarter 2015 levels, which exaggerated the sell-off across markets. Brent crude was $95.6 per barrel at 30 September 2014 compared with US$ 46.7 at the end of September.

 

“Looking ahead, we expect markets to remain volatile, and oil prices to remain range bound. GCC markets are readjusting company earnings to reflect the impact of sustained low oil prices. The status of the GCC economies remains sound and able to address current challenges. In our opinion, interesting new investment opportunities will arise from market corrections.  

 

“Our clients continue to place significant value in our services. We will continue to focus on serving their needs and managing shareholders’ capital prudently – a commitment which is central to our long-term value proposition.” - TradeArabia News Service