Sico, licensed as a conventional wholesale bank by the Central Bank of Bahrain, has seen its third-quarter (Q3) net profit attributable to shareholders soar 62% year-on-year, to record BD545,000 ($1.4 million). Increased Q3 profitability was underpinned by positive performance in both investment and fee incomes, despite regional and global market conditions. 

 

However, its nine-month (9M) net profit attributable to shareholders dropped 23% to BD2.2 million ($5.8 million) mainly on account of lower fee and commissions income.  

 

Earnings per share (EPS) recorded 1.27 Bahraini fils in the third quarter of the year versus 0.80 Bahraini fils in the comparable quarter of 2022. Sico reported total comprehensive income attributable to shareholders of BD524,000 for Q3, compared to a total comprehensive income of BD183,000 booked in the same quarter of last year, reflecting a 186% surge.

 

Total 9M income down 

On a year-to-date basis, EPS stood at 5.05 Bahraini fils for the nine months of 2023 compared to 6.67 Bahraini fils for the same period of 2022. Sico reported total comprehensive income attributable to shareholders of BD2.1 million for 9M, compared to a total comprehensive income of BD2.5 million booked in the same period last year, representing a drop of 13%.

 

Total equity attributed to shareholders stood at BD68.0 million compared to BD70.0 million recorded at year-end 2022, representing a 3% decline. Treasury shares amounting to BD1.9 million were acquired during the period, leading to a decline in the equity balance. Sico’s total assets recorded BD371.3 million as of September 30, 2023, an increase of 33% from the BD280.0 million recorded at year-end 2022. 

 

Sico’s net investment income rose 298% year-on-year to BD2.8 million in 9M from BD697,000 in the same period last year, on the back of a strong third quarter performance. On the other hand, Sico’s net fee income recorded BD5.4 million, declining 25%, as compared to BD7.2 million achieved in the nine months of 2022; noting that in 2022 the performance fee earned was circa 2 million more than current period.  

 

Brokerage and other income

Meanwhile, brokerage and other income came in at BD1.5 million for 9M 2023, a 25% decline from the BD1.9 million recorded in same period last year, as regional markets witnessed significant decline in turnover compared to the previous year.

 

On a gross basis (including leverage) Sico’s assets under management (AUMs) rose 23% by BD400 million to BD2.2 billion compared to BD1.8 billion at year-end 2022. 

 

Chairman of the Board of Sico, Abdulla Kamal, said: “Sico continued to experience consistent growth in its assets under management throughout the quarter, despite the challenges posed by consecutive interest rate increases, which undeniably impacted the performance of both stock and fixed income markets, as well as the operations of certain segments within our business lines. 

“We progressed in executing our strategic initiatives in Bahrain, Saudi Arabia and the UAE. We successfully introduced new investment funds and innovative financial banking services, alongside cutting-edge investment and savings solutions tailored for businesses and institutions in the region.”

 

Impressive Q3

Chief Executive Officer of Sico, Najla Al-Shirawi, said: “Our financial performance has remained robust, with our third-quarter results displaying impressive growth versus the same period last year. Sico's core business lines consistently delivered positive outcomes, offering diverse investment opportunities to our clients. Our funds continued to outperform benchmarks, and our assets under management reached all-time highs, demonstrating the effectiveness of our investment strategies and our commitment to disciplined, long-term investment principles. Furthermore, our Investment Banking team was selected as the advisory partner and receiving agent for Dallah Al Baraka in its voluntary exit offer for Al Baraka Group and the financial advisor for Gulf Tamin in its partial offer to acquire 10% of Arab Insurance Group, and we anticipate our involvement in more significant deals in the coming months.”--TradeArabia News Service