Net profit for the nine-month period ended 30 September increased by 99% to BD3.37 million, compared with BD1.69 million for the corresponding period for 2012; while operating income grew by 35% to BD7.08 million from BD5.25 million for the first nine months of the previous year. Basic earnings per share rose by 98% to 7.87 fils, from 3.97 fils for the same period last year.
For the third quarter of 2013, net profit grew by 153% to BD1.45 million, compared with BD571000 for the same period in the previous year; while operating income rose by 54% to BD2.72 million from BD 1.76 million for the third quarter of 2012. Basic earnings per share increased to 3.39 fils from 1.34 fils for the third quarter of 2012.
Net interest income, net fee and commission income, and brokerage and other income during the third quarter of 2013 contributed BD 319 thousand, BD734000 and BD230000 respectively to operating income; while net investment income contributed BD1.43 million. Total operating expenses for the three months period were BD1.25 million.
Year to date brokerage and other income increased by 67% to BD 915000 along with net investment income which grew by 58% to BD3.35million. Net interest income, and net fee and commission income also improved, to BD974000 and BD 1.84 million respectively. For the first nine months of 2013, total operating expenses, which include staff overheads, general administration and other expenses, were BD 3.64 million, compared with BD 3.40 million for the same period in 2012.
As at 30 September 2013, total balance sheet footings had increased by 20% to BD 94.10 million from BD 78.45 million at the end of 2012. Assets under management grew by 36% to BD 307.44 (US$815) million from BD 226.18 (US$600) million at end-2012, reflecting a strong performance by SICO’s asset management business. Assets under custody with the Bank’s wholly-owned subsidiary – SICO Funds Services Company (SFS) – grew by 46% to BD1.20 (US$ 3.19) billion from BD 824.17 million (US$2,186 billion) at the end of 2012.
“I am delighted to report that SICO has achieved an excellent financial performance so far this year. Highlights include substantial increases in net profit and operating income with, significantly, all business lines contributing positively to the bottom line. In particular, brokerage and other income increased by 67%, net investment income grew by 58% and assets under management rose by 36%. The third quarter saw a number of key transactions and mandates being finalised by the asset management and corporate finance business lines,” Shaikh Abdullah bin Khalifa Al- Khalifa, Chairman of Securities & Investment Company, said.
“It is encouraging that non-trading activities account for over 39% of total income, which shows we are moving closer to an optimum 50:50 balance between proprietary income and fee-based revenue. Balanced and diversified revenue generators will enable the Bank to better withstand market volatility,” Shiekh Abdullah, added.
SICO continued to maintain a strong capital base, ending the first nine months of the year with shareholders’ equity of BD 58.97 million, and a strong consolidated capital adequacy ratio of 65.58 per cent. The Bank continues its prudent posture with regards to the domestic and international capital markets. Available-for-sale securities at the end of September 2013 increased to BD 26.72 million (end-2012: BD 21.83 million), while investments at fair value through profit or loss rose to BD 18.48 million (end-2012: BD 16.12 million).
“On balance, we expect the positive momentum of the first nine months to continue for the rest of the year, provided there are no unforeseen events. GCC equities are likely to continue generating attractive returns, as regional and international investors are likely to deploy additional funds into our regional markets, which will be beneficial for SICO’s business,” Tony Mallis, the bank’s CEO, said.