Bahrain boutique asset manager, SICO, has seen its net profit for the last quarter for 2020 fall by 49% compared to Q4 in 2019, from BD2.5 million to BD1.2 million (US$6.64 million to $3.19 to million).
Meanwhile consolidated net profit for the year reached $7.97 million, a 51% fall on the previous year.
Total comprehensive income also fell by a similar amount (57%) over the course of the year, from $18 million to $7.71 million.
The firm has attributed the decline to lower performance fees for assets under management as a result of the Covid-19 pandemic as well a fluctuation in oil prices that negatively affected the market valuation of local securities.
However, while net investment income decreased by 48% over the course of the year, it did improve in the second year due to a steady recovery in local markets.
And both assets under management and assets under custody grew over the course of the year, by 9% and 7% respectively.
The firm’s board has recommended a dividend equal to 5% of share value.
SICO chairman Shaikh Abdulla bin Khalifa Al Khalifa hailed the firm’s “resilience” in the face of the pandemic and also referenced the expansion of its growth strategy during the year which included the acquisition of a majority stake in Saudi-based investment firm Muscat Capital.
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