MANAMA: Sico has reported a consolidated net profit of BD159,000 for the first six months of 2020, a decrease of 94 per cent from BD2.9 million recorded in the first half of 2019.
Earnings per share (EPS) for the six month period were 0.43 fils compared to 7.76 fils in the same period of 2019.
Sico recorded a total comprehensive loss for the first half of BD666,000 compared to a total comprehensive income of BD3 million in the first six months of 2019.
Adverse market conditions due to the spread of Covid-19 took a toll on Sico’s net investment income during the six-month period, which recorded a loss of BD342,000 in the first half of this year compared to an income of BD3.5m in the corresponding period last year.
However, the bank’s performance was supported by strong aggregate net fee, brokerage and other income, which came 18pc higher than the previous year.
Brokerage and other income reached BD2.1m in the first six months of 2020, growing by 71pc from BD1.2m recorded in the first half of 2019.
Meanwhile, net fee income amounted to BD1.7m in the first half of 2020, down 14pc from BD2m recorded in the same period of 2019.
Total shareholders’ equity as of end-June 2020 amounted to BD54.7m representing a decrease of 8pc from BD59.4m as recorded at year-end 2019.
Sico’s total balance sheet footings recorded BD168.7m as of end-June 2020, increasing by 1pc from BD166.8m at the end of the same period in 2019 owing to higher cash and bank balances and securities bought under repurchase agreement.
Total assets under management (AUMs) amounted to BD659.3m decreasing 18pc from BD808.7m recorded at year-end 2019.
Assets under custody with the bank’s wholly-owned subsidiary, Sico Funds Services Company, stood at BD2.6 billion as of end-June 2020, decreasing by 8pc from BD2.8bn posted at the end of 2019.
Chairman Shaikh Abdulla bin Khalifa Al Khalifa said, “Sico has demonstrated an outstanding amount of resilience in the face of a consistently challenging environment since the start of the year. While a combination of a global slowdown resulting from the ongoing Covid-19 pandemic, market turmoil and fluctuating oil prices had affected Sico’s investment income during the period, all core business lines delivered a commendable performance. Our track record and clients’ trust in our proven capabilities allowed us to deliver positive returns amidst these challenging conditions and further cemented Sico’s position as a leading regional investment house.”
Also commenting on the results, chief executive Najla Al Shirawi said, “While our proprietary investment book was negatively impacted by lower valuations owing to steep selloffs across all financial markets, Sico was able to minimise losses thanks to a defensive strategy adopted at the start of the year. In parallel, Sico continued to push forward with its growth efforts across all business lines.
Mandates
“Our asset management was successful in securing new mandates while maintaining Sico’s funds outperformance of its regional benchmarks and its leading track record. Sico’s investment banking team has also been awarded several new mandates, most notable was the appointment as Bahrain receiving agent, execution advisor, and cross-listing advisor for Kuwait Finance House’s offer to acquire 100pc of Ahli United Bank.
“At our brokerage business, we continued to grow our client base trading on behalf of clients’ equities and fixed income securities and instruments in regional and global markets. Sico maintained its position as the leading broker in the kingdom for 22 years running and the most active market maker.
“Regionally, Sico is currently exploring an opportunity to acquire a majority stake in Muscat Capital, a Saudi-based wholly-owned subsidiary of Bank Muscat, subject to the approval of the regulators in Bahrain and Saudi Arabia. The full-service investment banking firm will further deepen Sico’s presence in the Saudi market and allow it to capitalise on market growth driven by Saudi Arabia’s upgrade to emerging market status on both the FTSE and MSCI indices. Our growth efforts and continued push on strategic initiatives underlie Sico’s ability to further build its fee business revenue streams amid unprecedented global challenges.”
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