Bahrain -  SICO has announced consolidated net profit attributable to shareholders grew 47 per cent year-on-year, to record BD1.3 million ($3.5m) in the second quarter of 2024 compared to BD892,000 ($2.4m) recorded in the same three-month period of last year.

This increase is primarily attributable to the increase in sustainable fee income in the asset management and investment banking lines of businesses.

Earnings per share (EPS) recorded 3.23 fils in the second quarter of the year versus 2.08 fils in the comparable quarter of 2023.

SICO reported total comprehensive income attributable to shareholders of BD1.2m ($3.2m) for the second quarter of 2024, compared to a total comprehensive income of BD1m ($2.7m) booked in the same quarter of last year, representing an increase of 18pc.

Total operating income for the second quarter of 2024 increased by 14pc to BD4.9m ($13m) as compared to BD4.3m ($11.4m) achieved in the same period of the previous year.

On a year-to-date basis, SICO recorded consolidated net profit attributable to shareholders for the first six months of 2024 amounting to BD3.2m ($8.4m), representing a 95pc surge from the BD1.6m ($4.3m) recorded in the first half of 2023.

There was increase in the overall assets under management and all business lines at SICO contributed to the growth in first half of 2024 as compared to 2023, except for the net investment income which was affected due to underperformance of the regional equity markets.

EPS were 7.77 fils for the first six months of 2024 compared to 3.87 fils for the same period of 2023.

SICO reported total comprehensive income attributable to shareholders of BD3m ($8m) for the first half of 2024, as compared to a total comprehensive income of BD1.6m ($4.3m) booked in the first six months of 2023, representing an increase of 86pc.

Total equity attributed to shareholders increased by 1.2pc to BD71.3m ($189.1m) as of June 30, 2024 compared to BD70.5m ($187m) recorded at year-end 2023, noting that a dividend of BD2.1m ($5.7m) was paid to the equity shareholders for the year 2023, during the first quarter of 2024, while total assets grew by 3pc to BD400.4m ($1.1 billion) as June 30, 2024 compared to BD389.9m recorded at year-end 2023.

SICO’s net fee income recorded BD4.8m ($12.7m), a 50pc increase from BD3.2m ($8.5m) achieved in the first half of 2023. Furthermore, brokerage and other income came in at BD2m ($5.3m) for the first half of 2024, a 93pc jump from the BD1m ($2.8m) recorded in the first half of 2023.

Meanwhile, net investment income stood at BD1.4m ($3.8m) in the first six months of 2024 declining by 37pc compared to BD2.3m ($6m) last year, primarily due to the negative performance of the regional equities portfolio.

On a gross basis (including leverage), SICO’s assets under management (AUMs) rose 6pc to BD2.4bn ($6.3bn) in the first half of the year compared to

BD2.3bn ($6bn) at year-end 2023.

The growth in AUMs was driven by expansion in client base together with additional inflow from existing clients across asset classes.

SICO chairman Abdulla Kamal commented on the second quarter performance, saying: “We are pleased with SICO’s robust performance in the first half of 2024, reflecting our strategic plans that ensure our resilience in the face of market fluctuations.

Our ability to deliver consistent growth and value to our shareholders underscores the strength of our business model and our commitment to excellence. Building on SICO’s continuous success, we remain focused on capitalising on market opportunities, further strengthening our position in the industry, and expanding our footprint across the region.”

SICO Group chief executive Najla Al Shirawi added: “SICO’s impressive performance in the first half of 2024 is a testament to our strategic initiatives and the dedicated efforts of our team. Despite the expected volatility of the net investment income, the notable growth in brokerage and other income, along with the growth in AUMs which has driven robust growth in net fee income, including asset management and investment banking advisory fees .

During this period, SICO played an instrumental role in launching the Tanmia Liquidity Fund in Oman, and introduced fractional bond and sukuk trading for investors, which has positioned us at the forefront of innovation in the region.

“Additionally, our ongoing success in providing investment banking advisory for primary and secondary markets transactions, as well as M&A transactions in Bahrain, demonstrates our ability to thrive in a competitive landscape. Furthermore, we also obtained the necessary regulatory final approval to transfer our subsidiary SFS (SICO Fund Services Company) Business in its entirety to SICO, enhancing our integrated service offering to our clients.”

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