SICO Reports BD 2.2 million (USD 5.8 million) Net Profit Attributable to Shareholders in the Nine Months of 2023

SICO BSC (c), licensed as a conventional wholesale bank by the Central Bank of Bahrain “CBB”, announced today its consolidated results for the third quarter and nine months ended 30 September 2023.

On a quarterly basis, SICO’s consolidated net profit attributable to shareholders grew 62% year-on-year, to record BD 545 thousand (USD 1.4 million) in the third quarter of 2023 compared to BD 336 thousand (USD 891 thousand) recorded in the same three-month period of last year. Increased third-quarter profitability was underpinned by positive performance in both investment and fee incomes, despite regional and global market conditions. Earnings per share (EPS) recorded 1.27 Bahraini fils in the third quarter of the year versus 0.80 Bahraini fils in the comparable quarter of 2022. SICO reported total comprehensive income attributable to shareholders of BD 524 thousand (USD 1.4 million) for the third quarter of 2023, compared to a total comprehensive income of BD 183 thousand (USD 485 thousand) booked in the same quarter of last year, reflecting a 186% surge.

On a year-to-date basis, SICO recorded consolidated net profit attributable to shareholders for the nine months of 2023 amounting to BD 2.2 million (USD 5.8 million), representing a 23% decrease from the BD 2.8 million (USD 7.5 million) recorded in the nine months of 2022 mainly on account of lower fee and commissions income. EPS stood at 5.05 Bahraini fils for the nine months of 2023 compared to 6.67 Bahraini fils for the same period of 2022. SICO reported total comprehensive income attributable to shareholders of BD 2.1 million (USD 5.7 million) for the nine months of 2023, compared to a total comprehensive income of BD 2.5 million (USD 6.6 million) booked in the same period last year, representing a drop of 13%.

Total equity attributed to shareholders stood at BD 68.0 million (USD 180.5 million) as of 30 September 2023 compared to BD 70.0 million (USD 185.6 million) recorded at year-end 2022, representing a 3% decline. Treasury shares amounting to BD 1.9 million (USD 5.0 million) were acquired during the period, leading to a decline in the equity balance. SICO’s total assets recorded BD 371.3 million (USD 984.8 million) as at 30 September 2023, an increase of 33% from the BD 280.0 million (USD 742.7 million) recorded at year-end 2022.

SICO’s net investment income rose 298% year-on-year to BD 2.8 million (USD 7.4 million) in the nine months of 2023 from BD 697 thousand (USD 1.8 million) in the same period last year, on the back of a strong third quarter performance. On the other hand, SICO’s net fee income recorded BD 5.4 million (USD 14.3 million), declining 25%, as compared to BD 7.2 million (USD 19.1 million) achieved in the nine months of 2022; noting that in 2022 the performance fee earned was circa 2 million more than current period. Meanwhile, brokerage and other income came in at BD 1.5 million (USD 3.8 million) for the nine months of 2023, a 25% decline from the BD 1.9 million (USD 4.8 million) recorded in same period last year, as regional markets witnessed significant decline in turnover compared to the previous year.

On a gross basis (including leverage) SICO’s assets under management (AUMs) rose 23% by BD 400 million (USD 1.1 billion) to BD 2.2 billion (USD 5.8 billion) compared to BD 1.8 billion (USD 4.8 billion) at year-end 2022.

Chairman of the Board of SICO, Mr. Abdulla Kamal, commented on SICO’s performance for the first nine months of 2023, saying, “SICO continued to experience consistent growth in its assets under management throughout the quarter, despite the challenges posed by consecutive interest rate increases, which undeniably impacted the performance of both stock and fixed income markets, as well as the operations of certain segments within our business lines. Additionally, progressed in executing our strategic initiatives in Bahrain, Saudi Arabia and the UAE. We successfully introduced new investment funds and innovative financial banking services, alongside cutting-edge investment and savings solutions tailored for businesses and institutions in the region.”

Chief Executive Officer of SICO, Ms. Najla Al-Shirawi, added, “Our financial performance has remained robust, with our third-quarter results displaying impressive growth versus the same period last year. SICO's core business lines consistently delivered positive outcomes, offering diverse investment opportunities to our clients. Our funds continued to outperform benchmarks, and our assets under management reached all-time highs, demonstrating the effectiveness of our investment strategies and our commitment to disciplined, long-term investment principles. Furthermore, our Investment Banking team was selected as the advisory partner and receiving agent for Dallah Al Baraka in its voluntary exit offer for Al Baraka Group and the financial advisor for Gulf Tamin in its partial offer to acquire 10% of Arab Insurance Group, and we anticipate our involvement in more significant deals in the coming months.”

SICO’s consistently solid performance saw the Bank garner numerous accolades during the quarter. Notably, SICO was named Best Investment Bank in Bahrain at the 2023 Global Finance World’s Best Investment Banks Awards for the fourth consecutive year. It was also recognized as Best Investment Bank in Bahrain and Best Bank for Diversity and Inclusion in Bahrain by the Euromoney Awards 2023. Additionally, it won Best MENA Fixed Income Fund Strategy (1 Year) 2023 at the Bonds, Loans & Sukuk Middle East Awards. SICO continues to be the Kingdom’s leading broker, with a 45% market share for the nine months of 2023, and the most active market maker for 25 consecutive years.

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

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