The agreement enables SFS starting May 30, 2010 to provide custody of BSE-listed securities to local, regional and international institutional investors.

The agreement was signed by Mr. Fouad Rashid, Director of BSE and Anthony Mallis SICO’s CEO and Chairman of SFS. 

To view the full press release in English & Arabic , please click here.

Net interest income during the year increased to BD 446,000 (Q1 2009: BD 377,000), while fee and commission income grew to BD 513,000 (Q1 2009: BD 421,000). Brokerage and other income increased to BD 360,000 (Q1 2009: BD 304,000).  Net Investment income stood at BD 920 thousand versus a loss of BD 432 thousand in the first quarter of 2009.   

Operating income increased threefold to BD 2.239 million (Q1 2009 : BD 670,000), with  earnings per share growing to 3 Bahrain fils, versus a marginal  loss per share of 0.39 Bahraini  fils for the same period the previous year .

The full press release in English and Arabic can be downloaded here.

The Financial Results advertisment in English can be downloaded here.

The Financial Results advertisment in Arabic can be downloaded here .

Based on the Firm’s 2009 financial results, shareholders approved the following appropriations recommended by the Board:

1.    Transfer of BD 308 thousand to the General Reserve.

2.    Transfer of BD 308 thousand to the Statutory Reserve

3.    Payment of a cash dividend of BD 2,121 thousand to shareholders, representing 5 per cent of paid-up capital.

4.    Directors’ remuneration of BD 135 thousand.

5.    Retained earnings of BD 206 Thousand carried forward for next year

6.    BD 30 thousand to be spent on supporting charitable, cultural and educational activities

After appropriations, total shareholders’ equity at year-end 2009 stood at BD 51.5 million compared to BD 49.8 million for year-end 2008.

In the EGM, shareholders approved the increase of the paid up capital from BD 42,419,709 to BD 42,528,368.8. This increase of capital represents the issue of 1,086,598 new shares with nominal value of BD 108,659.8 allocated to the Employee Share Ownership program (ESOP).

The full press release in English & Arabic can be downloaded here .

Net interest income during the year increased to BD 1.7 million (2008: BD 1.1 million), while fee and commission income decreased to BD2.4 million (2008: BD2.8 million). Brokerage and other income fell to BD 1.5 million (2008: BD 3.7 million).  Net Investment income stood at BD 795 thousand recovering from a loss of BD 3 million in 2008.    

Operating income increased by 36 percent to BD 6.4 million (2008 : BD4.7 million), with  earnings per share growing to 7 Bahraini fils, versus a loss per share of 4 fils for 2008.

Client fee generated Income represented 60 per cent  of the operating income for the year.   Assets under management reached BD 150.5million at the end of December 2009.

Total expenses, which includes, both staff overheads and general administration and other expenses fell for 2009 to reach BD3.3 million from BD 3.9 million the previous year.  

The conference is exceptionally topical in that it focuses the future of the international financial markets, especially after the formative events of the past two years. While the financial and economic crises of 2008 may be receding in some people’s minds, the consequences of these events will be unpredictable and long lasting and it is worth looking critically at some of the outcomes that will unfold over the next few years

Please click here to download SICO’s presentation at the conference

Speaking ahead of this prestigious annual event, Anthony Mallis, Chief Executive Officer of SICO, put the Firm’s view into context:

“The impact of the global financial crisis has been widely acknowledged. In an unprecedented chain of events, asset prices have suffered a dramatic decline, leading to deleveraging, asset outflows and liquidation of funds.”

Latest international research statistics show that in 2008, global assets under management (AUM) fell by 17% to US$ 90 trillion. Regionally, some of the best performing mutual funds suffered declines in assets under management of up to 90%, as GCC stock markets lost nearly two-thirds of their value.

The full press release in English & Arabic can be downloaded here .

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 per cent (or BD 72.3 million) of its balance sheet in cash and deposits, compared to 72 per cent in the fourth quarter of 2008 (BD78 million). Available-for-sale securities amounted to BD 14.3 million as of the end of June ’09 , (2008: BD13.5 million) while Held-to-maturity investments amounted to BD 4.3 million, and Investments at fair value fell by 24 per cent to BD 3.8 million (from 5 million as of end Dec 2008).
Total income for the first six months of 2009 was BD 2.603 million (1st half Y     2008 BD 7.620 million) while earnings per share reached 2.21 Bahraini fils (2008: 18 Bahraini fils). Assets under management increased by 5 per cent to BD 160 million, compared to BD 152.5 million at the end of 2008.

Total expenses, which include staff overheads, general administration and other expenses, fell by 10 percent for the first half of 2009 to BD1.668 million compared to BD 1.862 million 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.

The full press release in English & Arabic can be downloaded here .

The Financial statements can be downloaded here.