Brokerage and other income for the period increased by 37 per cent to BD 230 thousand from BD 168 thousand in the first quarter of 2012, reflecting the buoyant performance of regional equity markets at the beginning of the year. Net interest income net fee and commission income also grew – registering BD 315 thousand (Q1 2012: BD 309 thousand) and BD 564 thousand (Q1 2012: BD 540 thousand) respectively; while investment income declined to BD 1.13 million (Q1 2012: BD 1.77 million). As a result, operating income decreased slightly to BD 2.24 million compared with BD 2.79 million for the first quarter of the previous year; and earnings per share dropped to Bahraini fils 2.39 (Q1 2012: Bahraini fils 3.71).
At the end of March 2013, assets under management had grown to BD 234.440 million from BD 226.183 million at the end of December 2012, underlining the continued strong performance by SICO’s asset management business. Assets under custody by the Bank’s wholly-owned subsidiary – SICO Funds Services Company (SFS) – grew by 31 per cent to BD 1.08 billion compared with BD 824.18 million at end-2012, with the Company benefitting from the signing of four new regional mandates during the previous year.
Total expenses for the first quarter of 2013 – comprising staff overheads and general, administrative and other operating expenses – rose slightly to BD 1.17 million from BD 1.14 million for the first three months of 2012. Impairment on available-for-sale investments remained modest at BD 56 thousand (Q1 2012: BD 67 thousand).
As at 31 March 2013, total balance sheet footings had grown to BD 83.84 million from BD 78.45 million at the end of 2012. The Bank continued to maintain a strong capital base, ending the first quarter with BD 56.89 million in shareholders’ equity (end-2012: BD 57.29 million), and a very high consolidated capital adequacy ratio of 63.64 per cent. SICO currently has 35.2 percent (or BD 29.51 million) of its balance sheet in cash and deposits (end- 2012: 41.5 per cent or BD 32.54 million), reflecting the cautious position that the Bank continues to take with regard to domestic and regional capital markets. Available-for-sale investments at the quarter-end increased by 23.7 per cent to BD 27.01 million (end-2012: BD 21.83 million), while investments at fair value through profit or loss grew to BD 17.97 million (end-2012: BD 16.12 million). A significant amount of SICO’s market risk exposure continues to be in short duration investment-rated and GCC government fixed income instruments.
“As our financial results illustrate, we started the year on an encouraging note, taking advantage of buoyant regional capital market conditions and a more benevolent global economic environment, while maintaining a realistically cautious position,” Commenting on SICO’s first quarter performance, Anthony Mallis, CEO of SICO, said.
“Our prudent strategy remains focused on maintaining a strong balance sheet, in order to capture new business opportunities and capitalise on further market recovery; while also taking into account any potential turbulence and uncertainty that capital markets may face during the rest of 2013. We remain cautiously optimistic about the short- and medium-term future.”