Home News The SICO Reports Net Profit Attributable to Shareholders During the First Nine Months of 2022: BD 2.8 Million ($7.5 Million)

The SICO Reports Net Profit Attributable to Shareholders During the First Nine Months of 2022: BD 2.8 Million ($7.5 Million)

The SICO Reports Net Profit Attributable to Shareholders During the First Nine Months of 2022: BD 2.8 Million ($7.5 Million)

SICO BSC (c), licensed as a conventional wholesale bank by the Central Bank of Bahrain “CBB”, announced today its consolidated results for the third quarter and nine months ended 30 September 2022.

On a quarterly basis, SICO recorded a consolidated net profit attributable to shareholders amounting to BD 336 thousand (USD 891  thousand) in the third quarter of 2022 compared to BD 871 thousand (USD 2.3 million) recorded in the same quarter last year, a 61% year-on-year decline. A consistently turbulent global financial market – where for the third consecutive quarter equities and bonds continued to slide and registered historical negative performance – had negatively impacted investment income during the quarter. Earnings per share (EPS) were 0.80 Bahraini fils in the third quarter of the year compared to 2.07 Bahraini fils in the third quarter of 2021. SICO reported a total comprehensive income of BD 183 thousand (USD 485 thousand) for the third quarter of 2022 compared to a total comprehensive income of BD 816 thousand (USD 2.16 million) booked in the same quarter last year, representing a 78% decline.

On a year-to-date basis, SICO recorded BD 2.81 million (USD 7.5 million) consolidated net profit attributable to shareholders for the nine months of 2022, a decline of 23% from BD 3.66 million (USD 9.7million) in the nine months of 2021. The drop is attributed to the decline in investment income and unrealized losses recorded on account of wide selloffs in the financial markets. EPS was 6.67 Bahraini fils for the nine months of 2022 compared to 8.68 Bahraini fils for the same period of 2021. SICO reported a total comprehensive income of BD 2.48 million (USD 6.6 million) for the nine months of 2022 compared to a total comprehensive income of BD 4.04 million (USD 10.7 million) booked for the nine months of 2021, representing a decrease of about 39%.

Total equity attributed to shareholders remained largely unchanged at BD 69.18 million (USD 183.51 million) as of 30 September 2022 compared to BD 68.87 million (USD 182.67 million) recorded at year-end 2021. SICO’s total assets recorded BD 265.68 million (USD 704.71 million) as of 30 September 2022, an increase of 1% from the BD 263.52 million (USD 699 million) recorded at year-end 2021.

The strong upward trajectory across the majority of SICO’s core business lines helped offset lower investment income, reflecting the success of its diversified operational strategy and its leading market position. The nine months of 2022 saw impressive growth in SICO’s net fee income, which climbed to BD 6.97 million (USD 18.50 million), an 85% increase from the nine months of 2021 figure of BD 3.76 million (USD 9.98 million). Brokerage activities were stable in the face of volatility and recorded a 3% increase, reaching BD 2.13 million (USD 5.66 million) in nine months of 2022 compared to BD 2.07 million (USD 5.5 million) in the same period last year.

Other interest income saw solid growth of 36% to BD 1.82 million (USD 4.82 million) in nine months of 2022 compared to BD 1.34 million (USD 3.55 million) in the same period last year. On the other hand, SICO’s net investment income declined by 81% year-on-year to BD 697 thousand (USD 1.85 million) in nine months of 2022 from BD 3.67 million (USD 9.8 million) recorded in the same period last year, due to rising inflation and monetary tightening

On a gross basis (including leverage), SICO’s assets under management (AUMs) increased 5% to BD 1.79 billion (USD 4.75 billion) as of 30 September 2022, compared to the BD 1.7 billion (USD 4.5 billion) recorded at year-end 2021. Meanwhile, on a net basis (excluding leverage), total AUMs increased 3% to BD 1.6 billion (USD 4.24 billion) as of 30 September 2022, compared to the BD 1.55 billion (USD 4.1 billion) recorded on 31 December 2021.

Chairman of the Board of SICO, Shaikh Abdulla bin Khalifa Al Khalifa, commented on SICO’s performance for the nine months of the year saying, “SICO has maintained its resilience in the face of increased volatility across markets, all the while continuing to make progress on its strategic initiatives and the enhancement of its business lines. Our efforts have reflected positively on SICO’s performance during the nine-month period, and helped accelerate the growth of our income from asset management, brokerage, investment banking, and custody and fund administration.”

Chief Executive Officer of SICO, Ms. Najla Al-Shirawi, further added, “While market conditions impacted SICO’s investment income in the nine months of 2022 versus the same period last year, the book managed to outperform the benchmark and generate positive returns. Most importantly, all other core business lines delivered a commendable performance despite the challenging conditions. Our net fee income experienced robust growth, driven by the increase in AUMs and performance fees. We are heading into the final months of the year having retained our position as one of the top quartile fund managers in the GCC and the leading brokerage house in Bahrain. Our investment banking team successfully closed the cross-border acquisition of 100% of Ahli United Bank by Kuwait Finance House as the Bahrain receiving agent, execution advisor, and cross-listing advisor. We also solidified our presence in Saudi Arabia, by acquiring the remaining 27.29% stake held by Bank Muscat in SICO Capital, making it a fully-owned SICO subsidiary. Moving forward, we will maintain our emphasis on enhancing our position through adaptation to market trends and further diversifying our business lines.”

SICO was recently named one of Forbes Middle East Top 30 Asset Management Companies in the Middle East. It also won Best Investment Bank in Bahrain at the 2022 Global Finance World’s Best Investment Banks awards for the third consecutive year. Additionally, SICO retained its ranking as the number one broker on the Bahrain Bourse for the twenty-third consecutive year, further demonstrating its brokerage business’ outstanding resilience. SICO Fixed Income Fund was also named the best-performing GCC Bond Fund in 2022.

SICO is listed on Bahrain Bourse (“BHB”) and its code is SICO-C. The press release and full set of financial statements are available on the BHB website.

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