SICO BSC (c), licensed as a conventional wholesale bank by the Central Bank of Bahrain “CBB”, announced its consolidated results for the third quarter and nine-month period ended 30 September 2019. SICO’s consolidated net profit for the nine months of 2019 increased 10% to BD 3.6 million compared to the BD 3.3 million recorded in the same period of 2018. Net operating income grew 11%to BD 9.3 million in the nine-month period of 2019 compared to BD 8.3 million during the corresponding period last year. Total operating expenses, including general administration expenses, staff overheads, and other expenses, recorded BD 5.6 million in the first nine months of 2019 versusBD 4.8 million in the nine-month period of 2018 . Earnings per share (EPS) for the nine months of 2019 were 9.67 Bahraini fils compared to 8.82 Bahraini fils for the corresponding period of 2018. Total comprehensive income grew by 20% from the BD 3.4 million recorded in the nine months of 2018 to BD 4.1 million in the same period of 2019.
On a quarterly basis, SICO’s consolidated net profit for the third quarter of 2019 was BD 708 thousand, an 8% decrease versus BD 769 thousand from the same quarter in 2018. The bank’s net operating income also witnessed a decrease of 27% from BD 2.3 million in the third quarter of 2018 to BD 1.7 million for the third quarter of 2019. Total operating expenses for the third quarter of 2019 were BD 1.9 million versus BD1.6 million recorded in the same quarter of last year. EPS for Q3 in 2019 were 1.91 Bahraini fils compared to the 2.08 Bahraini fils recorded in Q3 2018. Total comprehensive income for the third quarter of 2019 increased by 44% to BD 1.05 million from the BD 728 thousand recorded in Q3 of 2018.
Commenting on SICO’s performance for the first nine months of 2019, Chairman of the Board Shaikh Abdulla bin Khalifa Al Khalifa said: “Despite some volatility across Gulf markets, SICO stood firm and has continued to lead Bahrain’s financial services industry, building on its reputation as a leading regional asset manager, market maker and the advisor of choice for its clients and investors. In October 2019 , we delivered on our regional expansion strategy, having received CMA licensing approval to begin offering asset management services in Saudi Arabia through our new subsidiary SICO Financial Saudi Company (under formation). We look forward to building on our healthy performance for the remainder of the year as we further expand our operations and add value for our stakeholders.”
Growth during the nine-month period of 2019 was driven primarily by an increase in the bank’s net fee income, which grew by 17% to BD 3.1 million from the BD 2.7 million recorded for the same period in 2018. Additionally, growth was also supported by higher net other interest income, which grew to BD 1.1 million in the nine-month period, a 48% increase over the BD 707 thousand recorded in the same period of 2018.
Total Assets Under Management (AUMs) amounted to BD 784.7 million (US$ 2.1 billion) as of 30 September 2019,increasing by 12% compared to BD 699.1 million (US$ 1.9 billion) at year-end 2018, with clients continuing to exhibit confidence in SICO as their asset manager.
Total assets under custody with the Bank’s wholly owned subsidiary, SICO Funds Services Company (SFS), wereBD 2.7 billion (US$ 7.3 billion) at 30 September 2019, increasing by 17% from BD 2.3 billion (US$ 6.2 billion) recordedat year-end 2018.
SICO’s total balance sheet footings recorded BD 166.3 million as of 30 September 2019, increased by 23% from the BD 135.3 million recorded at year-end 2018, boosted primarily by higher cash and bank balances and other assets. Total shareholder equity at SICO amounted to 56.6 million at the end of the first nine months of 2019, compared to BD 55.7 million recorded at the end of 2018, with a net of BD 3.1 million in cash dividends distributed. Consolidated capital adequacy ratio for SICO stood at a healthy 57.5% as of 30 September 2019.
Chief Executive Officer Ms. Najla Al-Shirawi reported:“SICO’s diversified services offering and regional presence allowed the bank to deliver strong results amidst a challenging operating environment. Regional markets continued to exhibit mixed performances during the third quarter, with corrections in Kuwait and Saudi Arabia against buying appetite in Dubai, Oman and Bahrain. Meanwhile Brent crude continues to be weighed down by fears of a global economic slowdown and elevated geo-political risks. Although these trends impacted our brokerage returns, we were able to grow our fee-based business and income, booking higher management fees on fund management, discretionary portfolios and market making operations. We continue to inspire investor confidence with our deep regional insights, asset management experience and long track-record of out performance. At the close of the third quarter, we were successful in leveraging this reputation for excellence and secured a new mandate as investment manager for the fixed-income and equity portfolio of the Minors’ Estate Directorate by the Bahraini Ministry of Justice, Islamic Affairs & Endowments. We are proud to have been chosen by the Directorate as their private sector partner.”
“Earlier in 2019, SICO was named Best Investment Bank in Bahrain at the 2019 Euromoney Middle East Awards as well as Best Equity Research House in Bahrain at the Global Business Outlook Awards, attesting to SICO’s continued ability to deliver exceptional results in the face of challenging market conditions,” she added.