Bahrain-based Sico, a leading regional asset manager, said that its net profit for the first half of 2018 increased by 19 per cent to BD2.5 million ($6.6 million) from BD2.1 million for the corresponding period of last year.

Total operating income grew by 19 per cent to BD6 million from BD5.1 million a year earlier. Total operating expenses, including staff overheads, general administration and other expenses, increased to BD3.2 million from BD2.8 million.

Earnings per share increased to Bahraini fils 6.74 compared to 5.06 fils for the first half of 2017.  Total comprehensive income for the first half of 2018 was BD2.7 million; representing an increase of 8 per cent from the comprehensive income of BD2.5 million achieved in the corresponding period last year.

Chairman of the Board Shaikh Abdulla bin Khalifa Al Khalifa said: “I am pleased to announce that the bank posted strong financial results for the first six months of 2018.  Sico’s business lines enjoyed an active and successful first half, with highlights including a continuing upward trend in assets under management, with brokerage and investment banking maintaining their dominant market position, and the proprietary book posting a strong performance. Sico continues to demonstrate its ability to seize market opportunities and inspire investor confidence, positioning the Bank to finish 2018 on a strong note.”

For the second quarter, Sico posted a BD1.07 million net profit, a 39 per cent increase from BD769 thousand during the same period of last year on the back of higher revenues across all business lines.

The bank reported a 21 per cent increase in total operating income, from BD2.3 million to BD2.8million,while total operating expenses, including staff overheads, general administration and other costs, increased from BD1.4 million to BD1.6 million.. Earnings per share, increased from 1.87 Bahraini fils to 2.89fils for the second quarter of 2018.

As of 30June 2018, the balance sheet stood at BD137.5 million compared with BD131.3 million at the end of 2017. Assets under management have grown significantly to BD681.97 million ($1.8 billion) from BD465.4 million ($1.2 billion), representing 47 per cent growth in comparison to the 2017 year-end balance. Assets under custody with the Bank’s wholly-owned subsidiary, Sico Funds Services Company (SFS) grew from BD2.2 billion ($5.7 billion) as at 31 December 2017 to BD2.3 billion ($6.1 billion).

Sico continued to maintain a comfortable capital base, well above regulatory requirements, ending the period with a shareholders’ equity of BD54.6 million (end-2017: BD59.8 million). The lower capital base compared to December 2017 is primarily due to Sico acquiring back 10 per cent of its shares as treasury stock, amounting to BD5.9 million, during the first half of 2018. Dividends’ amounting to BD1.93 million were also distributed.  Accordingly, the consolidated capital adequacy ratio stood at 57.92 per cent.

Chief executive officer Najla Al Shirawi said: “GCC government revenues and GDP received a boost over the past six months from strong oil prices, with Brent Crude rising nearly 19 per cent in the first half of the year; we expect to see higher earnings in some key sectors. GCC market performances continued to diverge during the period, with Saudi Arabia and Kuwait markets strengthening due to their inclusion on MSCI and FTSE, while Dubai and Oman have posted disappointing performance as investors reallocate their positions within the GCC.”

Al Shirawi continued: “Asset Management maintained its robust growth trend with all Sico funds performing strongly against their respective benchmarks and peers. Sico maintained its position as the number one broker and leading Market Maker on the Bahrain bourse, handling more than 7,314 transactions involving 773 million shares worth a total value more than BD145 million. This translates to a market share in excess of 56 per cent.

In addition, the Bahrain Liquidity Fund, for which Sico is the Fund Manager, continued to meet its objectives of increasing the liquidity and depth of the Bahrain Bourse, whereby the market’s total traded value jumped c.19 per cent YoY to BD128 million in 1H18 with BLF contributing 28 per cent of the traded value.

During the period, Sico was appointed lead manager and underwriter for an initial public offering by APM terminals, the exclusive operator of Khalifa Bin Salman Port, which is a multi-purpose facility for domestic cargo and cruise traffic, and a trans-shipment hub for the growing Gulf shipping market.

The IPO, which is expected in the fourth Quarter 2018, will list 20 per cent of the company’s shares on the Bahrain Bourse, a statement said. – TradeArabia News Service