OREANDA-NEWS. Securities & Investment Company (SICO) , licensed by the Central Bank of Bahrain as a conventional wholesale bank, announced today its financial results for the second quarter of 201 5 and the first six months of the year.

Net profit for the first half of 2015 was BD 3.5 million compared with BD 5.1 million for the first six months of 2014 , a decrease of 31% mainly due to lower performance and turnover by all GCC markets ; while operati ng income totaled BD 6.8 million versus BD 8.2 million or 17% lower for the same period last year . Basic earnings per share were Bahraini 8.3 fils against 11.8 fils for the fir s t six months of 2014.

For the second quarter of 2015 , net profit was BD 2.1 million compared with BD 2.5 million for second quarter of 2014 , representing a 15 % retracement; with operating income reducing by 5% to BD 3.8 million against BD 4.0 million the previous year. Basic earnings per share were Bahraini fils 4.9 compared with 5.8 fils in the second quarter of 2014.

The contribution to operating income by ne t investment income and interest income during second quarter of 201 5 increased to BD 1.8 million (2Q 14: BD 1.3mn) and BD 405 thousand (2Q 14: BD 327 thousa nd) , respectively. Net fee and commission income, contributed BD 1.0 million (2Q 14: BD 1.6mn) and brokerage and other income was BD 512 thousand (2Q 14: BD 829 thousand). Total operating expenses for the period rose slightly to BD 1. 7 million from BD 1. 5 million in the second quarter of 2014.

Year to date, interest income contributed BD 784 thousand (1H 14: BD 65 7 thousand); while brokerage and other income amounted to BD 1.0 million (1H 14: BD 1.6mn) , net investment income was BD 3.2 million (1H 14: BD 3.7mn), and net fee and commission income totaled BD 1.8 million (1H 14: BD 2.3mn) . Fo r the first six months of 2015, total operating expenses, which include staff overheads, general administration and other expenses, amounted to BD 3.3 million (1H 14: BD 3.2 mn).

As at 30 June 2015, total balance sheet footings had increased to BD 123.8 million from BD 115.6 million at the end of December 2014; while shareholders’ equity remained roughly on par at BD 60.6 million . Investments at fair value through profit or loss increased to BD 20.5 million from BD 17.3 million at year - end 2014, with available - for - sale investments reduced slightly to BD 28.6 million from BD 28.8 million.

Assets under management grew to BD 374.4 million (US\\$ 993.1 million) from BD 338.8 mi llion (US\\$ 898.7 million ) at the end of the previous year; while a ssets under custody with the Bank ’s wholly - owned subsidiary – SICO Funds Services Company ( SFS ) – increased to BD 1.75 billion (US\\$ 4.6 billion) from BD 1.64 billion (US\\$ 4.4 billion) at year - end 2014 .

Commenting on these results , Shaikh Abdulla bin Khalifa Al Khalifa, Chairman of Securities & Inves tment Company, said: “ SICO posted a highly commendable performance for the fir st half of 2015, especially given the more favourable economic and market background during the corresponding period in 2014. Encouragingly, the Bank’s results for the second qua rter of 2015 showed a marked improvement over the results for the first three months, almost on par with secon d quarter of 2014, which bodes well for the rem a inder of the year”.

Putting the financial results for the first half of 2015 into context, Chief Executive Officer of SICO, Ms. Najla M. Al Shirawi, said: “During this period , all GCC markets performed lower than the corresponding period in 2014, when the S&P Composite Index gained 10.8 per cent compared with 6.4 per cent for t he first six months of 2015. The average daily market turnover in US dollars also declined across all markets, with Dubai and Abu Dhabi being the most affected at minus 61% and 72% respectively. In terms of oil prices, Brent crude averaged US\\$ 59.3 per barrel during the first half of 2015 compa red with US\\$ 108.8 per barrel for the respective period in 2014.

“On a more positive note, the second quarter of 2015 witnessed an improvement in market performance and oil prices. All GCC markets traded higher and finished in positive territory except for Kuwait and Bahrain; while the average price of Brent crude rose from US\\$ 55 per barrel at the end of first quarter 2015 to US\\$ 63.5 at the end of June. The overall recovery across GCC markets was boosted by corporate earnings, attractive valuations for some of the heavyweights , the opening of the Saudi market to foreign investors and greater stability of oil prices.

“In the medium - term, oil price recovery and corporate earnings should drive the GCC markets higher; while some investors are expected to return to the markets after the summer holiday season. Our outlook for SICO for the rest of year remain s positive , based on the expectation for further growth in our fe e - based income , and an ongoing positive contribution to the bottom line by our conservatively - managed proprietary book ; while we continue to manage our costs effectively, ” added Ms. Al Shirawi.