The Arab Petroleum Investments Corporation (Apicorp), a multilateral development financial institution, has posted a 3% year-on-year (y-o-y) rise in net income –from $112 million in 2019 to $115 million in 2020.

The key drivers include a 6% y-o-y growth in Apicorp’s Corporate Banking portfolio to reach$3.9 billion, as well as a 13% y-o-y growth in its Treasury& Capital Markets portfolio, which also netted $46 million in capital gains, a 488% increase from the prior year.

Moreover, the Corporation’s balance sheet increased from $7.34 billion to $7.89 billion in 2020, a 7.5% y-o-y uptick which is higher than the 5% CAGR recorded over the past five years. Key financial and risk metrics also continued their steady improvement, as the corporation recorded its highest ever liquidity ratio at 349% and increased its capital adequacy ratio to 31% (+1% y-o-y), as well as reducing its leverage level from 2.5x in June 2020 to 2.23x in December 2020.

Apart from demonstrating the strength and resilience of Apicorp’s financial position, the robust financial and risk metrics enabled Apicorp to retain its ‘Aa2’ rating with a stable outlook from Moody’s and earned its inaugural ‘AA’ rating with a stable outlook by Fitch – the only regional financial institution in MENA to hold two ‘AA’ ratings.

The year also witnessed a landmark capital increase by which the Corporation increased its authorized capital from $2.4 billion to $20 billion, subscribed capital from $2 billion to $10 billion, paid-up capital from $1 billion to $1.5 billion, and callable capital from $1 billion to $8.5 billion.

Dr. Aabed bin Abdulla Al-Saadoun, Chairman of the Board of Directors said: “The strong 2020 financial results despite the uncertain economic landscape that clouded most of the year illustrates Apicorp’s exceptional steadfastness and resilience. The fact that we ended the year with a 3% increase in net income points to the Corporation’s strong and solid fundamentals.

“As the region, and indeed the world, begins to recover from the impact of the COVID-19pandemic, we are confident that we will continue to ably support the MENA energy sector, including the proactive advancement of the energy transition agenda.”

Dr Ahmed Ali Attiga, Chief Executive Officer of Apicorp, said: “We are immensely proud to close yet another successful financial year for Apicorp. The milestones we achieved in 2020were made more remarkable given the shockwaves of the unprecedented triple crisis stemming from the COVID-19 pandemic that severely impacted the financial results of peer financial institutions and affected all sectors.”

“Complemented by the resolute support from our Member Countries, deep partnership base, and the hard work of all staff members, our positive results underscore the soundness of our long-term investment and funding strategy, as well as our agile and efficient approach to tackle the challenges of 2020.

“Looking ahead, we will continue to solidify our position as the trusted financial partner to the Mena energy sector. In line with our development mandate, we aim to focus on supporting the growth of the private sector – particularly in the clean and renewable energy space– to accelerate the energy transition and build a more sustainable future for the Arab region,” Dr Attiga added. – TradeArabia News Service