Net consolidated profit for the year increased by 76 %to BD 5.1million, compared with BD 2.9 million for 2012; while operating income grew by 41 %to BD 10.6 million from BD 7.5 million the previous year. Basic earnings per share rose by 86 %to 11.9 Bahraini fils from 6.71 Bahraini fils in 2012.
Total Operating Income for the final quarter of 2013 increased to BD 3.5 million compared to BD 2.2 million for the corresponding 2012 period while total expenses for the 4Q2013 rose to BD 1.7 million from BD 1 million for the 4Q2012. The net consolidated profit for the fourth quarter of 2013 is BD 1.8 million, compared with BD 1.2 million for the same period of the previous year.
Brokerage and other income for the full year increased to BD 1.2 million (2012: BD 671 thousand), along with net investment income which grew to BD 4 million (2012: BD 3.3 million). Net fee and commission income was also augmented to BD 4 million (2012: BD 2.2 million), while net interest income remained largely unchanged from last year at BD 1.3 million. Total operating expenses, which include staff overheads, general administration and other expenses, were BD 5.3 million, compared with BD 4.4 million in 2012.
As at 31 December 2013, total balance sheet footings had increased by 20 %to BD 94.2 million from BD 78.4 million at the end of the previous year. Assets under management grew by 39 %to BD 317 million from BD 228 million at end-2012; while assets under custody with the Bank’s wholly-owned subsidiary – SICO Funds Services Company – grew by 53 %to BD1.26 billion from BD 824 million at the end of 2012.
SICO continued to maintain a strong capital base, ending the year with shareholders’ equity of BD 61.9 million, with a strong consolidated capital adequacy ratio of 62.3%. As a reflection of its traditionally prudent philosophy, the bank remains highly liquid with currently 35 %( or BD 32.8 million) of its balance sheet in cash and deposits, compared with 41.5 %( or BD 32.5 million) at the end of 2012. Available-for-sale securities at the end 2013 increased to BD 32.7 million (end-2012: BD 21.8 million), while investments at fair value through profit or loss rose to BD 19.8 million (end-2012: BD 16.1 million).
“I am delighted to report that SICO achieved an excellent financial performance in 2013. Highlights include substantial increases in net profit and operating income with, significantly, all business lines contributing positively to the bottom line. In particular, brokerage and other income increased by 86%, net investment income grew by 22 %and assets under management rose by 39%. In addition, SICO was awarded important new mandates in the areas of discretionary portfolio management, agency brokerage, corporate finance, and custody and administration,” Sheikh Abdulla bin Khalifa Al Khalifa, Securities & Investment Company’s Chairman, said.
“It is particularly encouraging that fee and commission based income now accounts for 50 %of total income, achieving the optimum 50:50 balance between proprietary income and fee-based revenue. With a balanced and diversified revenue model, the institution is better positioned to accommodate market volatility. Looking ahead to 2014, we are optimistic on the new opportunities for SICO’s continued growth. The Bank is well-positioned to take advantage of the considerable interest by GCC institutional investors in the Gulf region, and the likelihood of increased foreign investment inflows to the GCC region,” Sheikh Abdulla added.
“In many ways, 2013 was a transformational year for SICO, with the best financial results since 2007, showing the Bank not only benefited from a more temperate regional and international capital markets environment, but also restoring its earnings potential as a result of strategic, business and operational initiatives undertaken during the past years that have set the basis for future growth. In no small way a great team has helped in generating these pleasing results,” Anthony Mallis, the Bank’s CEO, said.
“On a personal note, my decision to retire in March 2014 marks the end of one chapter in SICO’s development and the beginning of another, with the Bank now in excellent shape. I am confident that the great team which is in place, underpinned by a long-held prudent business philosophy and coupled to a highly-capitalised balance sheet, will continue to take this institution forward,” Tony said.