MANAMA: SICO has reported consolidated net profit for the third quarter of 2020 of BD1.6 million, marking a 119 per cent increase compared with BD708,000 from the same quarter in 2019.
Earnings per share (EPS) for the quarter were 4.20 fils compared with 1.91 fils in the third quarter of 2019.
Total comprehensive income for the quarter increased by 78pc to BD1.9m from BD1.1m recorded in the same quarter of 2019.
Consolidated net profit for the first nine months of 2020 amounted to BD1.7m, a decrease of 52pc from BD3.6m recorded in the corresponding period of 2019.
EPS for the nine months were 4.63 fils compared with 9.67 fils in the same period of 2019.
Total comprehensive income amounted to BD1.2m in the first nine months of 2020, a decrease of 70pc as compared to BD4.1m recorded in the same period of 2019.
Total shareholders’ equity as of end-September 2020 amounted to BD56.6m representing a decrease of 5pc from BD59.4m as recorded at year-end 2019.
The decline reflects the dividend distribution during the period amounting to BD3.9m.
Total assets recorded BD187.9m as of end-September 2020 increased by 13pc from BD166.8m at year-end 2019.
The increase is owing to higher cash and bank balances and securities bought under repurchase agreement.
SICO’s net investment income amounted to BD1.7m for the nine months compared to BD3.1m recorded in the first nine months of 2019, with the decline driven by adverse market conditions in the first half of the year.
However, net investment income posted a strong recovery in Q3 2020, recording BD2m compared to a loss of
BD415,000 in the corresponding quarter of 2019.
Meanwhile, SICO’s aggregate net fee, brokerage and other income reached BD5.3m in the nine-month 2020 period, up 7pc compared to BD4.9m recorded in the same period last year.
Total assets under management (AUMs) amounted to BD792.5m compared to BD808.7m recorded at year-end 2019.
AUMs increased in the third quarter of 2020 by BD133.2m thanks to asset management team’s active and successful fund raising, as well as improved market performance.
Assets under custody with the bank’s wholly owned subsidiary, SICO Funds Services Company (SFS), stood at BD2.8bn as of end-September 2020, remaining stable compared to BD2.8bn at the end of 2019.
Chairman Shaikh Abdulla bin Khalifa Al Khalifa said, “SICO delivered a commendable performance during the nine-month period despite the challenging market conditions. In particular, our third quarter’s strong results were testament to our clients’ trust in our proven capabilities and further cemented SICO’s position as a leading regional investment house. Our diversified revenue stream together with our strong and liquid balance sheet enabled us to progress further with our strategic plans, even amid such turbulent times.
“Going forward, we remain cognisant of the challenges posed by a second wave of Covid-19 and its impact on market volatility, particularly oil prices. Nonetheless, the board is confident in SICO’s ability to navigate the current challenges and continue delivering on its near- and long-term strategic plans to achieve further growth.”
Sico chief executive Najla Al Shirawi further added, “Both global equity markets and regional debt markets witnessed a strong rally in the third quarter. This helped drive high returns from SICO’s investment book, with income generated from SICO’s proprietary investments in the third quarter of 2020 delivering an almost three-fold increase compared to 2019. Meanwhile, our asset management division witnessed significant growth bolstered by new AUM mandates and SICO’s signature funds’ continuous outperformance. At the bank’s brokerage business, SICO continued to broaden its client base, leveraging on its digital trading platform SICO LIVE which offers access to regional and global markets.
“The division’s strong results in the nine-month period were thanks to growing trading values with the introduction of international equities and bonds, and SICO was also successful in extracting higher value from its brokerage activities with a ramp up of its margin lending and repo business. SICO continues to be the kingdom’s leading broker with a 60pc market share in Q3-2020 and the most active market maker for 22 consecutive years.”
“On the regional front, SICO is currently in the final stages of its acquisition of a majority stake in Muscat Capital, the Saudi-based wholly owned subsidiary of Bank Muscat, subject to the approval of the regulators in Bahrain and Saudi Arabia. This acquisition is in line with SICO’s strategy to further enhance its on-the-ground presence in Saudi Arabia, capitalising on the kingdom’s increased growth and further expanding its activities and service offerings,” added Ms Al Shirawi.
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