securities & investment company announces healthy second quarter profits - Net profit of BD 1.10 million for second quarter 2009 and BD 935 thousand
Bahrain-based Securities & Investment Company (SICO) announced today a net profit of BD 1.10 million for the second quarter of 2009 compared to a loss of BD 167 thousand for the first quarter. Net profit for the corresponding period last year was BD2.25 million. SICO also announced a net profit of BD 935 thousand for the first six months of the year, compared to BD 5.76 million for the first half of 2008.
SICO’s prudent strategy helped the Firm to benefit from the moderate revival in global and regional markets seen during the second quarter. The strong balance sheet of the Firm, which is a reflection of SICO’s prudent approach, further strengthened during the period. SICO currently has 74 per cent (or BD 72.3 million) of its balance sheet in cash and deposits, compared to 72 per cent in the fourth quarter of 2008 (BD78 million). Available-for-sale securities amounted to BD 14.3 million as of the end of June ’09 , (2008: BD13.5 million) while Held-to-maturity investments amounted to BD 4.3 million, and Investments at fair value fell by 24 per cent to BD 3.8 million (from 5 million as of end Dec 2008).
Total income for the first six months of 2009 was BD 2.603 million (1st half Y 2008 BD 7.620 million) while earnings per share reached 2.21 Bahraini fils (2008: 18 Bahraini fils). Assets under management increased by 5 per cent to BD 160 million, compared to BD 152.5 million at the end of 2008.
Total expenses, which include staff overheads, general administration and other expenses, fell by 10 percent for the first half of 2009 to BD1.668 million compared to BD 1.862 million for the same period the previous year. Head count remained largely unchanged.
The Firm, however, maintains its ongoing investment in the business to ensure that it is well positioned for the full recovery in GCC markets, while continuing to aggressively manage costs.
Shaikh Mohammed bin Isa Al Khalifa, Chairman of Securities & Investment Company, said: “We are delighted to announce a good performance for the first half of 2009, which is a creditable achievement considering the prudent and conservative approach taken by the company. SICO has consistently operated on a ‘fortress balance sheet’ basis, protecting clients’ and shareholders’ assets. The de-risking posture became all the more apparent from early September ‘08. Although the Firm was, and still is, impacted by the turmoil in the global financial markets, and its adverse effect on the GCC equity markets, SICO performed in an exceptionally responsive manner to unfolding events, always putting clients’ interests first.
“Our strategy is supported by a unique corporate culture that embraces a prudent business approach and an enduring commitment to the values of consistency, confidentiality, integrity, and transparency. These have served us well during the challenging market conditions by helping us to weather the worst of the storm. Profitable, highly liquid, strongly capitalised and unleveraged, SICO is well positioned to take advantage of reduced competition and new business opportunities as the markets improve over the next period,” he added.
Securities & Investment Company is a wholesale bank offering a selective range of investment banking services, including asset management, brokerage, corporate finance and market-making, on a regional basis and with a particular emphasis on Bahrain. Through its wholly owned subsidiary, SICO Fund Services Company (SFS), SICO also provides custody and fund administration services.
SICO’s comprehensive range of research, regular market updates and reviews, and Fund Reports, can be accessed via www.sicobahrain.com
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