Securities& Investment Company announces healthy third quarter profits

Published November 19th, 2009 - 01:34 GMT

Bahrain-based Securities & Investment Company (SICO) announced today a net profit of BD1.6 million for the third quarter of this year compared to 2008’s third quarter loss of BD 1.2 million.   For the past nine months the firm generated a net profit of BD 2.5 million compared to BD 4.6 million for the equivalent period in 2008. The Firm reported total assets of BD 80.7 million for the period ended September 30, 2009, declining from BD 108.7 million at year-end 2008. Liabilities also declined to BD 26.8 million from BD 58.9 million at year-end 2008.

The firm’s CEO, Anthony Mallis commented that: "The quarter’s results were pleasing with all units contributing to the improving results. The firm had only one loss making month in January during the nine months under review; this loss occurred during the peak of the global financial crisis.  While GCC and international equity markets have regained partially their composure and the future outlook has improved, there is still a great amount of uncertainty in the system. We are concerned that regional, and international, markets may be over-reaching themselves; a great number of economic and banking challenges still remain on the horizon and which seem not to be factored in".

SICO currently has 56.4 per cent (or BD 45.5 million) of its balance sheet in cash and deposits, compared to 79 per cent in cash and bank balances and treasury bills as of end of 2008 (BD 86 million). Investments at fair value increased by 160 per cent to BD 13.2 million (2008 BD 5 million), while available-for-sale securities amounted to BD 14.1 million (2008: BD13.5million). Held-to-maturity investments amounted to BD 4.8 million, and understate their mark to market value. The bank did not borrow during the quarter.



Total income during the third quarter increased to BD 2.4 million (3Q08 loss: BD 163 Thousand) while earnings per share grew to 3.72 Bahraini fils, from a loss of 2.80 Bahraini fils for the same period last year.  On a year-to-date basis, total income is BD 5 million (2008: BD 7.5 million ) and earnings per share stood at 5.93 Bahraini fils (2008: 12.84 fils).

Net interest income during the third quarter accounted to 18.7 per cent of total income, while asset management and brokerage and other income contributed 13.9per cent and 19.9per cent respectively . Assets under Management increased by 5.5% percent to BD160.9 million from BD 152.4 million since end of 2008. 

Total expenses, which include staff overheads, general administration and other expenses, fell by 13.6 percent for the first nine months of 2009 to BD2.491 million compared to BD 2.886 million for the same period the previous year. Head count remained largely unchanged.

Shaikh Mohammed bin Isa Al Khalifa, Chairman of Securities & Investment Company, said, “We are delighted to be able to announce a strong performance in the third quarter of 2009.  The achievement underscores the continued effectiveness of the SICO’s strategy and prudent management principles based on product and asset diversification.  All SICO’s business units made their contribution to the success of these results by focusing on delivering high quality, innovative services to our clients.”

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