Bahrain-based Securities and Investment Company (SICO) on announced a net profit of BD3.785 million for the year ending December 2010 compared to BD3.078 million at the end of 2009, representing an increase of 23 per cent from the previous year.
“The financial markets remained volatile during the year; however by the second half of the year the firm benefited from buoyant global and GCC equity and fixed income trading conditions. As a result, trading revenues and investments at fair value both increased substantially. Net investment income increased to BD 2.968 million (2009: 795000),” SICO in a statement said.
“Net interest income during the year decreased to BD1.5million (2009: BD 1.7 million), fee and commission income declined to BD2.3 million (2009: BD2.4 million) and brokerage and other income fell to BD 1.14 million (2009: BD 1.5 million), reflecting the low cost interest environment, the dearth of capital and debt raising opportunities and a reduced share turnover in the GCC’s equity markets,” it added.
The bank said that it’s operating income increased by 23.3 percent to BD 7.8 million (2009: BD6.4 million), with earnings per share growing to 8.9 Bahraini fils versus 7 fils for 2009.
“Client fee generated income represented 29.2 per cent of the operating income for the year. Assets under management increased by 33.6% to BD 201 million at the end of December 2010 (2009: BD 150.5 million)
Total expenses, which include, staff overheads, general administration and other expenses increased by 23.5 per cent in 2010 to BD4 million compared with BD 3.3 million the previous year.
The firm’s balance sheet contracted to BD81.2 million (2009: BD82.6 million), which was highly liquid, while shareholders’ equity grew at a healthy tempo reaching BD56.7 million (2009: 53.8 million). Proposed dividend payout to shareholders is 6% of the par paid-up capital (2009: 5%)
“The firm continued to invest in the business, ensuring that it is well positioned for the future recovery in the GCC markets, while continuing to aggressively manage costs. Staff numbers were maintained at 2009 levels.”
“In a relatively difficult and volatile year, in which SICO significantly out-performed its regional peers, our firm was able to surpass by a margin the gains made in 2009,” Shaikh Mohammed bin Isa Al-Khalifa, Chairman SICO said.
“The firm continued maintaining a positive but also cautious stance in its businesses, while concurrently maintaining its levels of investing in human resources and operational capabilities, and positioning itself for the coming growth phase in the regional markets.”
“SICO’s solid financial results underscore the continued effectiveness of SICO’s consistent strategy and prudent management principles based on product and asset diversification. It also highlights the dedicated commitment of the Firm’s team to deliver high quality and innovative services with the utmost integrity and confidentiality, to retain the confidence and loyalty of our clients, while continuing to set a benchmark in their respective areas of operation,” he added.
Securities & Investment Company is a wholesale bank offering a selective range of investment banking services, including asset management, brokerage, corporate finance and market-making, on a regional basis and with a particular emphasis on Bahrain. Through its wholly owned subsidiary, SICO Fund Services Company (SFS), SICO also provides custody and fund administration services.