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Sico net profit down 48pc in 2015

MANAMA, February 20, 2016

Securities and Investment Company (Sico), licensed by the Central Bank of Bahrain as a conventional wholesale bank, has posted a net profit of BD2.8 million ($7.37 million) for 2015, down 48 per cent compared to BD5.4 million ($14.2 million) the year before.
 
The fall was mainly due to the heightened volatility of regional and global equity markets during the second half of the year, said the company in a statement.

Operating income amounted to BD8.4 million compared with BD12.4 million the previous year, around 32 per cent lower. Basic earnings per share in 2015 were Bahraini fils 6.6 versus 12.7 fils in 2014.

Total operating expenses, which include staff overheads, general administration and other expenses, reduced to BD 5.5 million from BD 6.4 million in 2014, reflecting the Bank’s success in managing its costs effectively., it stated.  

For the fourth quarter of 2015, total operating income was BD1.7 million compared to BD671,000 for the corresponding period in 2014; while net consolidated profit was BD548,000 after provisions for impairment of investments of BD140,000; compared to BD1.4 million net loss for the fourth quarter of 2014, which included provisions for impairment of investments of BD366,000.

The total expenses amounted to BD 1.03 million, it added.

Commenting on the results, Sico chairman Shaikh Abdulla bin Khalifa Al Khalifa, said: “Despite 2015 proving to be considerably more challenging and volatile than had been expected, we posted a commendable performance, which marked seven consecutive years of profitability since the financial crisis."

“Looking ahead, 2016 will be another highly-challenging year.  However, the Board has full confidence in the ability of the Bank’s high-calibre management team to respond to the challenges of a new regional reality in a positive and proactive manner,” he added.

Putting the financial results of 2015 into context, CEO Najla M Al Shirawi, said: “Most of the GCC markets ended the year in double-digit negative territory (minus 14 to 17 per cent). Market turnover across the region was considerably more subdued than 2014, with trading values declining by 32 per cent from 2014 levels."

"However, GCC fixed income markets performed positively, closing the year up 1.7 per cent," she stated.

“Against such a challenging backdrop, Sico’s business lines showed great resilience, and posted another positive performance during the year. Whilst maintaining our market share in the Bahrain Bourse, Sico continued on winning new asset management mandates. Despite the market depreciation, assets under management dropped only by 1.9 per cent year on year,” noted Al Shirawi.

“As we have seen in the past, interesting new investment opportunities arise from market corrections, and Sico will continue to take full advantage of such opportunities in the best interests of our clients and shareholders, a commitment which is central to our long-term value proposition in the last 20 years,” she added.-TradeArabia News Service




Tags: Bahrain | profit | Sico |

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