SICO posts $2.7m net profit
Manama, May 13, 2013
Securities & Investment Company (SICO) has reported a net profit of BD1.02 million ($2.7 million) for the first quarter of this year, compared to BD1.58 million in the same period last year.
The Bahrain-based regional investment bank said brokerage and other income increased by 37 per cent to BD230,000 from BD168,000, reflecting buoyant performance of regional equity markets at the beginning of the year.
Net interest income grew to BD315,000 from BD309,000 earlier, as did net fee and commission income, rising to BD564,000 from BD540,000 earlier.
Investment income declined to BD1.13 million from BD1.77 million, as a result, operating income decreased to BD2.24 million from BD2.79 million. Earnings per share dropped to 2.39 fils from 3.71 fils.
At the end of first quarter, assets under management had grown to BD234.44 million from BD226.183 million at the end of last year, underlining continued strong performance, the statement added.
Assets under supervision of SICO Funds Services Company (SFS), a wholly-owned subsidiary of SICO, grew by 31 per cent to BD1.08 billion from BD824.18 million at the end of last year, with the company benefitting from the signing of four new regional mandates last year.
Total expenses, comprising staff overheads and general, administrative and other operating expenses, rose to BD1.17 million from BD1.14 million. Impairment on available-for-sale investments was BD56,000, as against BD67,000 earlier, reported the Gulf Daily News, our sister publication.
At the end of first quarter, total balance sheet footings had grown to BD83.84 million from BD78.45 million at the end of last year.
The bank said it "continued to maintain a strong capital base", ending the quarter with BD56.89 million in shareholders' equity, as against BD57.29m at the end of last year and a "very high consolidated capital adequacy ratio of 63.64 per cent".
SICO said it currently has 35.2 per cent or BD29.51m of its balance sheet in cash and deposits, as against 41.5 per cent or BD32.54 million at the end of last year, "reflecting the cautious position that the bank continues to take with regard to domestic and regional capital markets".
Available-for-sale investments at the end of the quarter increased by 23.7 per cent to BD27.01 million, when compared with BD21.83 million at the end of last year, while investments at fair value through profit or loss grew to BD17.97 million, from BD16.12 million.
A significant amount of SICO's market risk exposure continues to be in short duration investment-rated and GCC government fixed income instruments, the statement said.
"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," said chief executive Anthony Mallis.
"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 the year.
"We remain cautiously optimistic about the short- and medium-term future," he said.-TradeArabia News Service