Securities and Investment Company reports BD1.10m net profit for second quarter 2009

Net profit for the corresponding period last year was BD2.25m. Sico also announced a net profit of BD935 thousand for the first six months of the year, compared to BD5.76m for the first half of 2008.

Sico's prudent strategy helped the Firm to benefit from the moderate revival in global and regional markets seen during the second quarter. The strong balance sheet of the Firm, which is a reflection of Sico's prudent approach, further strengthened during the period.

Sico currently has 74% (or BD72.3m) of its balance sheet in cash and deposits, compared to 72% in the fourth quarter of 2008 (BD78m). Available-for-sale securities amounted to BD14.3m as of the end of June '09, (2008: BD13.5m) while Held-to-maturity investments amounted to BD4.3m, and Investments at fair value fell by 24% to BD3.8m (from 5 million as of end Dec 2008).

Total income for the first six months of 2009 was BD2.603m (1st half Y 2008 BD7.620m) while earnings per share reached 2.21 Bahraini fils (2008: 18 Bahraini fils). Assets under management increased by 5% to BD160m, compared to BD152.5m at the end of 2008.

Total expenses, which include staff overheads, general administration and other expenses, fell by 10% for the first half of 2009 to BD1.668m compared to BD1.862m for the same period the previous year. Head count remained largely unchanged.

The Firm, however, maintains its ongoing investment in the business to ensure that it is well positioned for the full recovery in GCC markets, while continuing to aggressively manage costs.

Shaikh Mohammed bin Isa Al Khalifa, Chairman of Securities & Investment Company, said:

"We are delighted to announce a good performance for the first half of 2009, which is a creditable achievement considering the prudent and conservative approach taken by the company. Sico has consistently operated on a 'fortress balance sheet' basis, protecting clients' and shareholders' assets. The de-risking posture became all the more apparent from early September '08. Although the Firm was, and still is, impacted by the turmoil in the global financial markets, and its adverse effect on the GCC equity markets, Sico performed in an exceptionally responsive manner to unfolding events, always putting clients' interests first."

"Our strategy is supported by a unique corporate culture that embraces a prudent business approach and an enduring commitment to the values of consistency, confidentiality, integrity, and transparency. These have served us well during the challenging market conditions by helping us to weather the worst of the storm. Profitable, highly liquid, strongly capitalised and unleveraged, Sico is well positioned to take advantage of reduced competition and new business opportunities as the markets improve over the next period," he added.

Securities & Investment Company is a wholesale bank offering a selective range of investment banking services, including asset management, brokerage, corporate finance and market-making, on a regional basis and with a particular emphasis on Bahrain. Through its wholly owned subsidiary, Sico Fund Services Company (SFS), Sico also provides custody and fund administration services.