SICO recorded consolidated net profit attributable to shareholders of BD292,000 ($775,000) in the fourth quarter of 2024 compared to the BD2.2m ($5.9m) recorded in the same quarter of the previous year, an 87 per cent decline.
This is mainly attributed to the retracement of equity and fixed income markets compared to the corresponding quarter last year, which had an impact on the performance of the proprietary investment book and brokerage activities.
Earnings per share were 0.7 fils in the fourth quarter of 2024, compared to 5.6 fils in the same quarter of last year. SICO reported a total comprehensive income attributable to shareholders of BD142,000, a decrease of 94pc compared to BD2.5m recorded in the same quarter of 2023.
Total operating income for the fourth quarter of 2024 decreased by 18pc to BD5m as compared to BD6.1m achieved in the same period of the previous year.
For the full year 2024, SICO reported BD5.5m ($14.6m) in consolidated net profit attributable to shareholders, representing a 26pc increase from the BD4.4m ($11.6m) recorded for 2023.
There was an increase of 18pc to the total operating income, which grew from BD18.3m in 2023 to BD21.6m in 2024. The increase in operating income and net profitability is primarily attributable to the solid performance across various lines of business, with brokerage and other income witnessing significant growth.
The growth in assets under management (AUM) also resulted in improving the sustainable fee income, in terms of asset management fees as well as custody and fund administration fees.
Additionally, the increase in fees from investment banking activities, which include advisory, managing and execution of institutional transactions, also contributed to the overall increase in income. Earnings per share recorded 13.5 fils in 2024, up from 10.7 fils in 2023.
SICO’s comprehensive income attributable to shareholders stood at BD5.7m in 2024, compared to BD4.6m in 2023, representing a 24pc increase. Net fee income for the year grew 33pc to BD10.8m compared to BD8.1m in 2023. Brokerage and other income jumped 77pc to BD3.8m in 2024, up from BD2.1m in 2023.
Meanwhile, net interest income saw a 10pc year-on-year increase to BD3.9m in 2024 compared BD3.6m recorded in 2023.
Finally, net investment income stood at BD3m in 2024, a 32pc decline from the BD4.5m recorded in the prior year, primarily due to the negative performance of the regional equities’ portfolio.
Total equity attributable to shareholders as of end-2024 was up 5pc to BD74m from BD70.5m at year-end 2023. Meanwhile, total assets as at year-end 2024 grew 5pc to BD411.2m compared to BD389.9m as of end-2023.
Based on this performance, SICO’s board of directors has recommended a dividend of 7.5pc of the eligible share capital, aggregating to BD3.2m, subject to the approval of the Central Bank of Bahrain (CBB) and the general assembly.
On a gross basis (including leverage) SICO’s assets under management (AUMs) rose 23pc to BD2.8 billion in 2024 from BD2.3bn in 2023. The growth in AUMs was driven by the launch of new funds, together with an additional increase in clients’ portfolios across asset classes.
Mr Kamal
Chairman Abdulla Kamal commented on SICO’s performance for the year saying: “We are immensely proud of the sustained financial success we continue to achieve, which directly reflects our unwavering commitment to upholding the highest standards of governance, making strategic investments, and our competitive capability. SICO has experienced a significant increase in assets under management, achieved excellence in brokerage activities, and notable growth in our investment banking services, solidifying our position as the partner of choice for M&A activities and capital market transactions, both public and private.
“As we approach SICO’s 30th anniversary in 2025, we remain focused on building on this momentum, driving shareholder value, and ensuring that SICO continues to play a pivotal role in the region’s financial ecosystem.”
Group chief executive Najla Al Shirawi added: “The year 2024 has been an extraordinary year for SICO, marked by a 26pc growth in net profit, a testament to the exceptional progress we’ve made across all fronts. We’ve successfully launched additional products and services that have resonated deeply with a wider client base, while securing several major transactions that highlight our leadership in the market. Our relentless focus on innovation, paired with operational excellence, has positioned us to seize emerging opportunities.
“As we kick off 2025, we’ve already made a strong start with the successful execution of Ma’aden’s acquisition of SIIC’s stake in ALBA, underscoring our standing as a trusted financial partner and adding to our impressive track record. We are confident that SICO’s future will be one of continued growth and success, propelled by our talented team and unwavering commitment to excellence.”
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