• Strong bottom line growth as net fee income climbs 142% and investment income nearly doubles

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 fourth quarter and year ended 31 December 2021.

On a quarterly basis, SICO’s consolidated net profit attributable to shareholders increased by 120% in the fourth quarter of 2021 to record BD 2.7 million (USD 7.3 million), compared to BD 1.2 million (USD 3.3 million) for the same quarter of the previous year. Earnings per share increased to 6.77 Bahrain fils in the fourth quarter of 2021 from 3.37 Bahraini fils in the same period last year. Total comprehensive income attributed to shareholders increased by 76% in the fourth quarter of 2021 to BD 3.0 million (USD 8.0 million) compared to BD 1.7 million (USD 4.6 million) for the same quarter of the previous year.

For the full year 2021, SICO reported a consolidated net profit attributable to equity shareholders of BD 6.4 million (USD 17.0 million), an increase of 116% from the BD 3.0 million (USD 7.8 million) recorded at year-end 2020. Earnings per share increased by nearly 100% to 15.96 Bahraini fils during the year from 8.00 Bahraini fils in 2020. SICO’s comprehensive income attributed to shareholders increased by 142% to BD 7.1 million (USD 18.8 million) in 2021 compared to BD 2.9 million (USD 7.7 million) for 2020.

Total equity attributed to shareholders increased by 18% to BD 69.0 million (USD 183.0 million), compared to the BD 58.3 million (USD 155 million) recorded on 31 December 2020. The increase reflects the strong increase in net profit for 2021, as well as SICO’s liquidation of its treasury shares through the share-swap acquisition of Muscat Capital (rebranded as SICO Capital).

Total assets increased by 45% to BD 263.5 million (USD 699.0 million) compared to BD 181.8 million (USD 482.2 million) on 31 December 2020. The expansion in SICO’s asset footing was attributable to the consolidation of SICO Capital following the acquisition in March 2021. Asset growth was further driven by an increase in securities bought under repurchase agreements, as well as an increase in cash and bank balances during the year.

Based on this strong performance, SICO’s Board of Directors has recommended a  dividend of 8% of the share capital,  (5% cash dividends and 3% stock dividend ), aggregating to BD 3.4 million (USD 9.1 million) subject to the approval of the Central Bank of Bahrain and the General Assembly

The external auditors, KPMG, have issued an unqualified opinion on SICO’s financial statements for the year ended 31 December 2021.

Strong performance across SICO’s lines of business maintained the Bank’s growth momentum throughout the year, with a further boost from strong results at SICO Capital. SICO recorded net investment income of BD 4.4 million (USD 11.8 million) in 2021, a substantial increase of 98% compared to the BD 2.2 million (USD 5.9 million) booked in the prior year. Net fee income increased by 142% to BD 8.8 million (USD 23.2 million) in 2021 compared to the BD 3.6 million (USD 9.6 million) booked one year previously. Meanwhile, net interest income booked BD 1.8 million (USD 4.9 million) for the year, an increase of 27% from the BD 1.4 million (USD 3.8 million) recorded in 2020. Brokerage and other income recorded BD 2.7 million (USD 7.1 million) in 2021, compared to BD 3.2 million (USD 8.6 million) booked in 2020. Brokerage income continued to perform well and was able to offset the decrease in fixed income trading by robust equities trading in 2021, while other income came lower in 2021 compared with prior year, due to a decrease in net FX income and a one-off income booked in 2020.

SICO’s assets under management (AUMs) increased substantially during the year on the back of new mandates and the introduction of new products, coupled with the consolidation of SICO Capital AUMs. On a gross basis (including leverage), SICO’s total AUMs increased by 80% to BD 1.7 billion (USD 4.5 billion) in 2021 compared to the BD 946.1  million (USD 2.5 billion) recorded on 31 December 2020. On a net basis (excluding leverage), total AUMs increased by 76% to BD 1.5 billion (USD 4.1 billion) in 2021, compared to the BD 877.9 million (USD 2.3 billion) recorded on 31 December 2020.

SICO’s subsidiary, SICO Funds Services Company, saw its assets under custody increase by 3% to BD 3.1 billion (USD 8.2 billion) as of 31 December 2021 compared to BD 3.0 billion (USD 8.0 billion) as of 31 December 2020.

Commenting on SICO’s performance for the year, Chairman of the Board Shaikh Abdulla bin Khalifa Al Khalifa said: “, SICO has successfully implemented its growth strategy in the face of the challenges brought about by the pandemic, capturing opportunities presented by the recovery and burnish its reputation as a leading financial service provider in the region. The growth in assets under management exceeded our expectations during the year, proving our ability to successfully leverage our core strengths to drive solid growth and deliver value to our stakeholders. 

Chief Executive Officer Ms. Najla Al-Shirawi added: “SICO has efficiently capitalised on the year’s recovery in global and regional markets to drive impressive growth in income and AUMs. The asset management division delivered strong growth in net fee income, while SICO’s brokerage team retained its first place on the Bahrain Bourse. On the other hand, our investment banking division had another successful and active year, during which they were involved in many transactions including the structuring and closing of our first acquisition in Saudi Arabia. This regional expansion is our greatest achievement of the year and has been repaid with a strong performance at SICO Capital since acquisition. Moving forward, we are confident that SICO possesses the talent, reputation, and regional presence required to optimally deploy our capabilities and go from strength to strength across our lines of business,” Al-Shirawi concluded.

SICO’s performance during 2021 drew recognition through a variety of prestigious awards and accolades. Recognition of SICO’s achievements during the year came at the Euromoney Awards for Excellence, where SICO was named Best Investment Bank in Bahrain for the third year in a row. SICO also received the Best Investment Bank in Bahrain Award at the 2021 Global Finance World’s Best Investment Banks awards for the second consecutive year. Meanwhile, SICO secured top honors in four categories at the 2021 Global Investor Group MENA Awards, where SICO was named the MENA region’s Sukuk Manager of the year and Equities Asset Manager of the year, as well as Bahrain’s Asset Management and Brokerage of the year.

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

-Ends-

About SICO

SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 4.5 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 

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