SICO reports BD3.7m profit, 8pc dividend

SICO, a leading regional asset manager, broker and investment bank announced yesterday a 12 per cent increase in its full-year consolidated net profit, thanks to higher revenues and improved operational performance across all of SICO’s business lines. SICO’s board of directors recommended a cash dividend of 8pc of the share capital, equivalent to 8 Bahraini fils per share subject to the approval of the Central bank of Bahrain and the General Assembly. Full-year consolidated net profit was BD 3.7 million in 2018, up 12pc compared to the BD 3.3m recorded in 2017.

Total comprehensive income remained unchanged in 2018 at BD 3.8m. SICO’s earnings per share (EPS) was 10.01 Bahraini fils compared to 8.01 Bahraini fils in the previous year. Net operating income was up 16pc to BD 10.7m in 2018 compared to the BD 9.3m recorded in 2017. Total operating expenses were recorded at BD 6.7m in 2018, up 14pc over 2017 figure of BD 5.8m. For the fourth quarter, consolidated net profit stood at BD 441 thousand in the fourth quarter of 2018, 8pc higher than the BD 409 thousand reported in the same quarter last year.

Net profit growth was attributed to a 25pc increase in net operating income to BD 2.4m in 4Q18 versus the BD 1.9m recorded in 4Q17. EPS was 1.19 Bahraini fils compared to 0.99 Bahraini fils in 4Q17 Total comprehensive income in 4Q18 was BD 369 thousand, down 28pc versus the BD 512 thousand in 4Q17. Operating expenses, including staff overheads, general administration and other expenses, posted BD 1.9m in 4Q18, up 22pc over the BD 1.5m in the corresponding period in 2017. Consolidated capital adequacy ratio stood at 63.97pc at the close of 2018 compared to 59.1pc at year-end 2017.

It is worth noting that the lower capital base as at 31 December 2018 compared to year-end 2017 follows SICO’s acquisition of 10pc of its shares as treasury stock (BD 5.9m) during the year. Total assets under management (AUM) grew by 50pc y-o-y to around BD 700m (US$ 1.9 billion) up from BD 465m (US$ 1.2bn) at year-end 2017, with all of SICO’s funds topping the league tables and distributing dividends during 2018. Assets under custody with the Bank’s wholly-owned subsidiary, SICO Funds Services Company (SFS) grew  by 8.4pc from BD  2.2bn (US$ 5.7bn) in 2017 to BD 2.3 billion (US$ 6.2bn) as at December 2018.