Treasury

Overview

SICO’s Treasury Division manages the Bank’s liquidity while employing a client-focused approach to provide value-added services for clients across the GCC. In an effort to provide attractive sources of funding to pursue market opportunities, the Treasury Division offers services including short-term money market, liquidity and hedging solutions, treasury Bills, foreign exchange, collateralized lending through margin facilities for equities, and repos for fixed income. The Bank’s foreign currency services are diverse, with SICO acting as a settlement agent for its clients’ transactions across markets for cost efficient trading.

2019 Operational Review

SICO’s Treasury Division weathered multiple challenges brought on by shifts in the macro environment including the reversal of interest rates by the FED and CBB in 2019. The Division managed to deliver a solid performance with interest income playing a substantial role during the year. Despite three interest rate cuts, Treasury achieved net interest income of BD 1.4 million in 2019. Foreign exchange income was bolstered with a contribution of BD 709 thousand as a result of the generally positive performance of active markets during the year. SICO maintained a sound and liquid balance sheet throughout 2019, with a capital adequacy ratio of more than 50%, remaining substantially above the CBB’s minimum requirement. The impressive results were made possible by utilizing a flexible, client-focus approach that directly addresses their needs through tailor-made solutions.