Securities and Investment Company announces healthy third quarter profits

The Firm reported total assets of BD80.7m for the period ended September 30, 2009, declining from BD108.7m at year-end 2008.

Liabilities also declined to BD26.8m from BD58.9m at year-end 2008.

The firm's CEO, Anthony Mallis commented that: "The quarter's results were pleasing with all units contributing to the improving results. The firm had only one loss making month in January during the nine months under review; this loss occurred during the peak of the global financial crisis.

While GCC and international equity markets have regained partially their composure and the future outlook has improved, there is still a great amount of uncertainty in the system. We are concerned that regional, and international, markets may be over-reaching themselves; a great number of economic and banking challenges still remain on the horizon and which seem not to be factored in."

SICO currently has 56.4% (or BD45.5m) of its balance sheet in cash and deposits, compared to 79% in cash and bank balances and treasury bills as of end of 2008 (BD86m). Investments at fair value increased by 160% to BD13.2m (2008 BD5m), while available-for-sale securities amounted to BD14.1m (2008: BD13.5m ).

Held-to-maturity investments amounted to BD4.8m, and understate their mark to market value. The bank did not borrow during the quarter.

Total income during the third quarter increased to BD2.4m (3Q08 loss: BD163 Thousand) while earnings per share grew to 3.72 Bahraini fils, from a loss of 2.80 Bahraini fils for the same period last year. On a year-to-date basis, total income is BD5m (2008: BD7.5m ) and earnings per share stood at 5.93 Bahraini fils (2008: 12.84 fils).
Net interest income during the third quarter accounted to 18.7% of total income, while asset management and brokerage and other income contributed 13.9% and 19.9% respectively . Assets under Management increased by 5.5%% to BD160.9m from BD152.4m since end of 2008.

Total expenses, which include staff overheads, general administration and other expenses, fell by 13.6% for the first nine months of 2009 to BD2.491m compared to BD2.886m for the same period the previous year. Head count remained largely unchanged.

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

"We are delighted to be able to announce a strong performance in the third quarter of 2009. The achievement underscores the continued effectiveness of the SICO's strategy and prudent management principles based on product and asset diversification. All SICO's business units made their contribution to the success of these results by focusing on delivering high quality, innovative services to our clients."

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.