Manama, Kingdom of Bahrain – SICO BSC (c), licensed as a conventional wholesale bank by the Central Bank of Bahrain “CBB”, announced today its consolidated results for the second quarter and six months ended 30 June 2022.

On a quarterly basis, SICO recorded a consolidated net profit attributable to shareholders amounting to BD 280 thousand (USD 730 thousand) in the second quarter of 2022 compared to BD 1.57 million (USD 4.2 million) recorded in the same quarter last year, an 82% year-on-year decline. Lower profitability for the quarter is primarily attributed to the challenging regional and global markets conditions witnessed during the quarter, which resulted in SICO’s proprietary book posting unrealized losses. Earnings per share (EPS) recorded 0.65 Bahraini fils in the second quarter of the year compared to 3.74 Bahraini fils in the second quarter of 2021. SICO reported a total comprehensive loss of BD 180 thousand (USD 480 thousand) for the second quarter of 2022 compared a total comprehensive income of BD 1.8 million (USD 4.7 million) booked in the same quarter last year.

On a year-to-date basis, SICO recorded a consolidated net profit attributable to shareholders for the first six months of 2022 amounting to BD 2.50 million (USD 6.6 million), a decrease of 11% from the BD 2.79 million (USD 7.39 million) recorded in the first half of 2021. EPS were 5.87 Bahraini fils for the first six months of 2022 compared to 6.87 Bahraini fils for the same period of 2021. SICO reported a total comprehensive income of BD 2.30 million (USD 6.01 million) for the first half of 2022, as compared to a total comprehensive income of BD 3.23 million (USD 8.56 million) booked for the first six months of 2021, representing a decrease of about 29%.

Total equity attributed to shareholders remained largely unchanged at BD 68.8 million (USD 182.6 million) as of 30 June 2022 compared to BD 68.9 million (USD 182.7 million) recorded at year-end 2021. SICO’s total assets recorded BD 268.6 million (USD 712.4 million) as at 30 June 2022, an increase of 2% from the BD 263.5 million (USD 699 million) recorded at year-end 2021.

The first six-months of 2022 saw exceptional growth in SICO’s net fee income which climbed to BD 5.23 million (USD 13.87 million), a 131% increase from first half of 2021 figure of BD 2.26 million (USD 6.0 million). Brokerage income came in almost unchanged from last year despite market volatility, recording BD 1.50 million (USD 3.95 million) for the first half of 2022. On the other hand, SICO’s net investment income declined by 76% year-on-year to BD 670 thousand (USD 1.77 million) in the first six months of 2022, with rising inflation and monetary tightening driving steep selloffs across bonds and equities markets.

On a gross basis (including leverage) SICO’s assets under management (AUMs) decreased by 2% to BD 1.67 billion (USD 4.4 billion) as of 30 June 2022, compared to BD 1.7 billion (USD 4.5 billion) recorded at year-end 2021. Meanwhile, on a net basis (excluding leverage), total AUMs decreased by 3% to BD 1.5 billion (USD 4.0 billion) as of 30 June 2022, compared to BD 1.54 billion (USD 4.1 billion) recorded on 31 December 2021.

Commenting on SICO’s performance for the first half of 2022, Chairman of the Board of SICO, Shaikh Abdulla bin Khalifa Al Khalifa, said, “SICO has demonstrated outstanding resilience in the face of a consistently challenging environment since the start of the year. While market conditions impacted SICO’s investment income during the period, all other core business lines delivered a commendable performance. SICO’s proprietary book’s resilient investment strategy – with diversified, long-term focused asset allocation helped reduce the risk of downside, although it is bound to perform in line with major markets and asset classes during turbulent times.”

Chief Executive Officer of SICO, Ms. Najla Al-Shirawi, further added, “The proprietary book negatively impacted our profitability in the second quarter; however, we remain comfortable with our diversified, liquid, and fundamentally sound proprietary investments. Despite wide selloffs during May and June amid inflationary pressures and market volatility, we were able to maintain our position as one of the best performing fund managers in the GCC and the leading brokerage house in Bahrain. We also launched eKYC services to our clients through our online trading platform SICO LIVE, delivering a more comprehensive digital experience that caters to our clients’ needs. Meanwhile, our investment banking team will act as Bahrain Receiving Agent, Execution Advisor, and Cross-Listing Advisor on the cross-border acquisition of 100% of Ahli United Bank by Kuwait Finance House, which was recently revived. Heading into the second half of the year, we continue to focus on implementing our strategy to further strengthen our leading market position across SICO’s geographies and our clients trust in our services.”

SICO was named 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’s outstanding resilience. SICO Fixed Income Fund has also been 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 BHB website.

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About SICO

SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 4.4 bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialised regional custody house, SICO Fund Services Company (SFS). SICO also oversees a majority-owned subsidiary, SICO Capital, a Saudi-based investment banking company. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees.

Media Contact:
Ms. Nadeen Oweis
Head of Corporate Communications, SICO
Email: noweis@sicobank.com