SICO reports BD2.8m profit

Manama : Securities and Investment Company (SICO), a conventional wholesale bank, yesterday reported net consolidated profit of BD2.8 million for fiscal year 2015, compared with BD5.4m in 2014, a decrease of 48 per cent primarily due to the heightened volatility of regional and global equity markets during the second half of the year. 

Operating income amounted to BD8.4m compared with BD12.4m for the previous year, around 32pc lower. Basic earnings per share in 2015 were Bahraini fils 6.6 versus 12.7 fils in 2014.

Total operating expenses, which include staff overheads, general administration and other expenses, reduced to BD5.5m from BD6.4m in 2014, reflecting the bank’s success in managing its costs effectively. 

For the fourth quarter of 2015, total operating income was BD1.7m compared to BD671 thousand for the corresponding period in 2014; while net consolidated profit was BD548 thousand after provisions for impairment of investments of BD140 thousand; compared to BD1.4m net loss for the fourth quarter of 2014, which included provisions for impairment of investments of BD366 thousand. Total expenses amounted to BD1.03m (4Q14: BD2.03m).

Looking ahead, Shaikh Abdulla bin Khalifa Al Khalifa, Chairman of Securities & Investment Company (SICO), said: “2016 will be another highly-challenging year.  However, the board has full confidence in the ability of the bank’s high-calibre management team to respond to the challenges of a new regional reality in a positive and proactive manner.”

Putting the financial results of 2015 into context, Najla M Al Shirawi, Chief Executive Officer, said: “Most of the GCC markets ended the year in double-digit negative territory (minus 14pc-17pc). Market turnover across the region was considerably more subdued than 2014, with trading values declining by 32pc from 2014 levels. However, GCC fixed income markets performed positively, closing the year up 1.7pc.”