Manama: Bahrain-based Securities & Investment Company (SICO), reported net consolidated profit of BD 2.3 million for fiscal year 2016 compared with BD 2.8 million in 2015, a decrease of around 18% attributable to a continued volatility of regional and global equity markets during the year.
SICO is licensed by the Central Bank of Bahrain as a conventional wholesale bank, has announced its financial results for the fourth quarter and full fiscal year ending 31 December 2016.
Operating income reduced by around 6% to BD 7.9 million from BD 8.4 million the previous year. Total operating expenses which include staff overheads, general administration and other expenses, reduced to BD 5.3 million from BD 5.5 million in 2015, reflecting the Bank’s continued success in managing its costs effectively. Basic earnings per share in 2016 were Bahraini fils 5.5 versus 6.6 fils for the previous year.
For the fourth quarter of 2016, net consolidated profit was BD 2.4 million compared with BD 548 thousand for the last three months of the previous year; while total operating income was BD 2.9 million versus BD 1.7 million for the corresponding period in 2015. Operating expenses amounted to BD 1.3 million (4Q15: BD 1.0 million).
As at 31 December 2016, total balance sheet footings stood at BD 147.1 million compared with BD 112.8 million at the end of the previous year. SICO continued to maintain a strong capital base, ending the year with shareholders’ equity of BD 58.1 million net of BD 2.1 million dividends distributed earlier in the year (2015: BD 58.4mn), and a very strong consolidated capital adequacy ratio of 61.1%. Investments at fair value through profit or loss were BD 28.0 million (end-2015: BD 14.3mn).
Assets Under Management increased by 19% to BD 395.9 million (US$ 1.1bn) from BD 332.3 million (US$ 881.5 mn) in 2015; while assets under custody with the Bank’s wholly-owned subsidiary – SICO Funds Services Company (SFS) – increased by 11.8% to BD 1.9 billion (US$ 5.0bn) from BD 1.7 billion (US$ 4.5bn) at the end of 2015.
“Despite a year marked by continued global economic uncertainty, volatile market conditions and unpredictable geo-political events, the Bank posted a solid financial performance; and maintained its leading position in Asset Management, Brokerage and Corporate Finance, with Fee-based Income accounting for 50% of total income. In particular, total Assets under Management exceeded US$ 1 billion, reflecting clients’ continued confidence in SICO’s capability to deliver a resilient performance in challenging market conditions,” Shaikh Abdulla bin Khalifa Al Khalifa, Chairman of Securities & Investment Company (SICO), said.
“Looking ahead, 2017 is likely to be another challenging period for the GCC region, with the economic headwinds of the previous year continuing unabated. However, the Board has every confidence in the Bank’s prospects and its ability to seize growth opportunities, irrespective of the challenges that might lie ahead.”
“Albeit prevalent volatility in financial markets during the year impacted the returns of the proprietary book, our core business lines remained buoyant, reflecting our persistence in growing the business through structuring inimitable investment products, originating pioneering market transactions, and delivering superior performance to our clients,” Ms. Najla M. Al Shirawi, Chief Executive Officer of SICO, said.
“We adopted a forward-looking, proactive approach throughout the year. Market Making initiated the US$ 100 million Bahrain Liquidity Fund designed to improve liquidity on the Bahrain Bourse, which has already made a considerable impact on market turnover. Corporate Finance was lead manager for BBK’s BD 100 million perpetual tier 1 convertible capital securities offering; the BD 25.8 million share swap between Gulf Hotels Group and Bahrain Tourism Company; and the listing of the Eskan Bank Realty Trust on the Bahrain Bourse. Fixed Income Asset Management offered an Islamic repurchase agreement (repo) and a total return swap,” added Ms. Al Shirawi.
