SICO Reports BD 737 thousand (USD 1.96 million) Net Profit Attributable to Shareholders for the First Quarter of 2023

SICO recorded a consolidated net profit attributable to shareholders amounting to BD 737 thousand (USD 1.96 million) in the first quarter of 2023 compared to BD 2.20 million (USD 5.83 million) recorded in the same quarter last year, reflecting a 66% y-o-y decline. Earnings per share (EPS) recorded 1.79 Bahraini fils in the first quarter of the year compared to 5.23 Bahraini fils in the first quarter of 2022. SICO reported a total comprehensive income attributable to shareholders of BD 591 thousand (USD 1.57 million) for the first quarter of 2023, compared to BD 2.53 million (USD 6.70 million) booked in the same quarter last year, reflecting a 77% decline.

The total operating income for the first quarter of 2023 amounted to BD 4.10 million (USD 10.85 million) as compared to BD 5.00 million (USD 13.37 million) achieved in the same period of the previous year , reflecting a 19% decrease. The first quarter figures of the previous year include a one-off income of BD 1.00 million (USD 2.68 million), resulting from proceeds received in lieu of a written-off investment in earlier years. Excluding the impact of the one-off income, the operating income in first quarter of 2023 was marginally above the same period in 2022.

Total equity attributed to shareholders stood at BD 66 million (USD 176 million) as at 31 March 2023, a decrease of 5% compared to BD 70 million (USD 186 million) as at 31 December 2022 mainly due to dividend payouts and acquisition of treasury shares during the first quarter of 2023. Total assets grew 8% to BD 303 million (USD 803 million) as at 31 March 2023, compared to BD 280 million (USD 743 million) as at 31 December 2022.

SICO's net investment income for the first quarter of 2023 recorded BD 1.03 million (USD 2.74 million) compared to BD 2.19 million (USD 5.80 million) in the same period last year, representing a 53% decline. However, this figure is largely unchanged versus last year when controlling for the one-time recovery of BD 1 million (USD 2.68 million) in the first quarter of 2022. Net fee income for the first quarter stood at BD 1.6 million (USD 4.24 million) compared to BD 1.64 million (USD 4.34 million) for the same period the previous year, reflecting a slight decrease of 2%. Meanwhile, net interest income saw a 73% year-on-year increase to BD 931 thousand (USD 2.47 million) in 2023 compared to BD 539 thousand (USD 1.43 million) in 2022. Finally, brokerage and other income recorded BD 527 thousand (USD 1.40 million) compared to BD 679 thousand (USD 1.80 million) in the first quarter of 2022.

On a gross basis (including leverage), SICO’s assets under management (AUMs) grew 5% to BD 1.89 billion (USD 5.00 billion) as of 31 March 2023, compared to BD 1.79 billion (USD 4.8 billion) recorded at year-end 2022. The growth in AUMs was driven by additional mandates and subscriptions to funds across asset classes offered by SICO, including money market, fixed income, equities, and real estate, in addition to the continued outperformance of SICO’s funds.

Commenting on SICO’s performance for the first quarter, Chairman of the Board, Abdulla Kamal, said: "SICO's ability to deliver positive and stable performance despite unfavourable market conditions for the second consecutive year stems from its conservative portfolio management strategy, diversification of products and services across various business lines, as well as growing presence across the region. With our assets under management now surpassing USD 5 billion, we look forward to further growth in our businesses in Saudi Arabia, the UAE, and Bahrain, reflecting our ability to boost growth in fee income despite the volatile investment environment."

Chief Executive Officer, Najla Al-Shirawi, added: “Our business is naturally affected by the cyclicality of the market, which can have an impact on our fee and commission income. However, despite this challenge, we managed to deliver a robust financial performance for the quarter, while remaining dedicated to our plans for regional growth and investing in our people, businesses, and systems. SICO’s AUMs continued to grow organically in both the equities and fixed income spaces, on the back of offering a diverse range of tailored investment strategies to meet client’s needs. Furthermore, our Investment Banking division maintained its status as the preferred partner for significant M&A deals in Bahrain. Finally, SICO maintained its position as the leading brokerage firm in Bahrain in terms of both the value and volume of transactions.”

SICO kicked off the year being named Best Investment Bank in Bahrain at the 2023 Global Finance World’s Best Investment Banks awards for the fourth consecutive year. Additionally, SICO 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 48% market share in the first quarter 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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