SICO Reports BD 4.4 million (USD 11.6 million) in Net Profit Attributable to Shareholders for the Year Ended 31 December 2023, a 23% Increase from the Previous Year
Manama, Kingdom of Bahrain SICO BSC (c), licensed as a conventional wholesale bank by theCentral Bank of Bahrain “CBB”, announced today its consolidated results for the fourth quarter andyear ended 31 December 2023.
On a quarterly basis, SICO recorded consolidated net profit attributable to shareholders of BD 2.2million (USD 5.9 million) in the fourth quarter of 2023 compared to the BD 742 thousand (USD 2million) recorded in the final quarter of the previous year, a 197% year-on-year rise. The boost in netprofitability over the three-month period was driven primarily by higher investment income and anincrease in AUMs, resulting in growth in net fee income. Efficient liquidity management and anincrease in the repo-based business contributed to the increase in net interest income. Brokerageincome recorded the increase, with fixed income brokerage acting as the key contributor. Earningsper share were 5.65 Bahraini fils in the fourth quarter of 2023, compared to 1.77 Bahraini fils in thesame three-month period of last year. SICO reported a total comprehensive income attributable toshareholders of BD 2.5 million (USD 6.5 million), an increase of 207% compared to BD 799 thousand(USD 2.1 million) recorded in the same quarter of 2022.
For the full year 2023, SICO reported BD 4.4 million (USD 11.6 million) in consolidated net profitattributable to shareholders, representing a 23% increase from the BD 3.6 million (USD 9.4 million)recorded for the year ended 31 December 2022. All lines of business exhibited resilient performancein 2023. Earnings per share recorded 10.70 Bahraini fils in 2023, up from 8.45 Bahraini fils in 2022.SICO’s comprehensive income attributable to shareholders stood at BD 4.6 million (USD 12.2million) in 2023, compared to BD 3.3 million (USD 8.7 million) in 2022, representing a 40% increase.
Total equity attributed to shareholders as of 31 December 2023 was up 1% to BD 70.5 million (USD187 million) from BD 70.0 million (USD 185.6 million) at year-end 2022. Meanwhile, total assets asat year-end 2023 grew 39% to BD 389.9 million (USD 1.0 billion) compared to BD 280.0 million (USD742.7 million) as at 31 December 2022.
Based on this performance, SICO’s Board of Directors has recommended a dividend of 5% of theeligible share capital, aggregating to BD 2.1 million (USD 5.7 million), subject to the approval of theCentral Bank of Bahrain (CBB) and the General Assembly.
SICO recorded net investment income of BD 4.4 million (USD 11.8 million) in 2023, a 326% growthfrom the BD 1.0 million (USD 2.8 million) recorded in the prior year. Net fee income for the yeardeclined 7% to BD 8.1 million (USD 21.6 million) compared to BD 8.7 million (USD 23.1 million)registered in 2022. Net fee income came lower due to a decrease in performance fees booked in2023 compared to 2022. Meanwhile, net interest income saw a 37% year-on-year increase to BD3.6 million (USD 9.5 million) in 2023. Finally, brokerage and other income remained flat at BD 2.1million (USD 5.7 million) in 2023.
On a gross basis (including leverage) SICO’s assets under management (AUMs) rose 25% to BD 2.3billion (USD 6.0 billion) in 2023 from BD 1.8 billion (USD 4.8 billion) in 2022.
Chairman of the Board, Abdulla Kamal, commented on SICO’s performance for the year saying,“During the year, SICO delivered a strong financial performance. Our unwavering commitment tooperational excellence, financial prudence, and a disciplined investment approach continued topropel us towards our overarching goals, allowing us to deliver consistent growth, preserveprofitability, and substantially increase in our assets under management irrespective of prevailingmarket conditions. We look forward to maintaining this momentum, creating value for stakeholders,strengthening our leading position in the region, and continuing to deliver forward-thinking solutionsthat serve the objectives of our customers and shareholders.”
Chief Executive Officer, Najla Al-Shirawi, added, “Our robust balance sheet, enhanced riskmanagement framework, and focus on organic growth across business lines, were all catalysts thatled to this positive financial performance. In terms of funds, our portfolios and funds continued tooutperform benchmark indices, with assets under management rising to their highest-ever recordedlevels. SICO succeeded in cementing its position as the partner of choice for significant M&Atransactions in Bahrain and retained its top ranking in terms of both value and volume of transactionsfor brokerage. Our focus during the year was on expanding and deepening our regional footprint byleveraging the knowledge and expertise that we have carefully cultivated for over 25 years. In Saudi,SICO Capital’s AUMs grew by 114% and the team executed its first ever transaction on Nomu.Looking ahead, our emphasis remains on direct and indirect expansion in key markets.”
SICO’s performance during 2023 was recognized by several prestigious organizations, with the Bankreceiving multiple accolades throughout the year. SICO was named Best Investment Bank in Bahrainby the Euromoney Awards for Excellence 2023 as well as the Global Finance Awards 2023. Its fundstrategy was named the Best MENA Fixed Income Fund Strategy by The Bonds, Loans & Sukuk Middle East Awards 2023. SICO was awarded Best Asset Manager and Best Broker in Bahrain byMiddle East Banking Awards 2023. It was also recognized as the Best Bank for Diversity andInclusion in Bahrain by the Euromoney Awards for Excellence 2023. Showcasing the resilience ofits brokerage business, SICO has retained its ranking as the number one broker on the BahrainBourse for the twenty-fifth consecutive year.
SICO is listed on Bahrain Bourse (“BHB”) and its code is SICO-C. The press release and full set offinancial statements will be available on SICO and BHB websites.
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