Bahrain-based Securities & Investment Company (SICO) announced today a net profit of BD 3.078 million for the year ending December 31, 2009 compared to 2008’s year-end loss of BD1.4 million.
Net interest income during the year increased to BD 1.7 million (2008: BD 1.1 million), while fee and commission income decreased to BD2.4 million (2008: BD2.8 million). Brokerage and other income fell to BD 1.5 million (2008: BD 3.7 million). Net Investment income stood at BD 795 thousand recovering from a loss of BD 3 million in 2008.
Operating income increased by 36 percent to BD 6.4 million (2008 : BD4.7 million), with earnings per share growing to 7 Bahraini fils, versus a loss per share of 4 fils for 2008.
Client fee generated Income represented 60 per cent of the operating income for the year. Assets under management reached BD 150.5million at the end of December 2009.
Total expenses, which includes, both staff overheads and general administration and other expenses fell for 2009 to reach BD3.3 million from BD 3.9 million the previous year.
With the overall reduced level of capital markets activity the bank’s balance sheet contracted during the year to BD 82.6 million (2008: BD108.8 million) but remained highly liquid, while shareholders’ equity grew at a healthy tempo reaching BD 53.8 million (2008: 49.9 million).
The bank, continued to invest in the business, ensuring that it is well positioned for the future recovery in the GCC markets, while continuing to aggressively manage costs. Staff numbers were maintained at 2008 levels.
Shaikh Mohammed bin Isa Al-Khalifa, Chairman of Securities & Investment Company, Commented: “Despite difficult market conditions, 2009 proved to be a positive year for SICO, during which we continued to protect our shareholders’ and clients’ assets. The global financial meltdown and its subsequent effect on the GCC, which started in September 2008, carried through into 2009 with increasing intensity. However, as a result of the concerted fiscal measures by governments around the world – including the support of GCC governments – the situation began to improve towards the end of the first quarter of the year. Since then, we have seen a modest revival in global and regional economic growth.”
“SICO’s solid financial results underscore the continued effectiveness of SICO’s consistent strategy and prudent management principles based on product and asset diversification. It also highlights the dedicated commitment of the Firm’s team to deliver high quality and innovative services with the utmost integrity and confidentiality, and to retain the confidence and loyalty of our clients. In these turbulent times, trust is an essential factor in maintaining the sound reputation of a financial institution.”