Arab Petroleum Investments Corporation (Apicorp), a multilateral financial institution, has recorded a net income of $99.6 million for the full year ended December 31, 2021. 

 

Apicorp’s performance marked a year of notable financial and operational achievements despite a reduction in reference rates and significant volatility in financial markets that persisted throughout the year, the company said. 

 

At year-end of 2021, the corporation’s balance sheet grew 1.3% y-o-y to reach $8 billion. Total comprehensive income reached $112.9mn  – up from $90.6 million in 2020.

 

Growth in corporate banking

Apicorp’s Corporate Banking portfolio reached $4.6 billion, representing a 19% y-o-y increase. This was partly due to the corporation having actively sought to disburse its $500 million countercyclical support package to its member countries and strategic partners, which was launched in 2020 to mitigate the impact of the Covid-19 pandemic and oil price fluctuations.

 

Moreover, the corporation increased its capital adequacy from 31% in 2020 to 32% and reduced its key leverage ratio from 2.2x to 2.1x in 2021. Return on assets and return on equity at year-end were 1.3% and 3.9%, respectively, while non-performing loans fell from 0.59% to 0.55% over the period. Notably, it also retained its ‘Aa2’ credit rating from Moody’s and ‘AA’ credit rating from Fitch during the year.

 

Dr Aabed Al-Saadoun, Chairman of the Apicorp Board, said: “Apicorp has consistently delivered improvements in its balance sheet over recent years, and 2021 was no exception. It is a testament to the corporation’s structural and strategic resilience that it delivered exceptional growth in corporate banking in a year marred by global economic uncertainty. It was also a year that saw the corporation lead the energy transition through the issuance of green bonds and an ESG framework that is transforming the very nature of our region’s energy landscape.”

 

A notable achievement for Apicorp in 2021 was its successful debut green bond issuance in September, which came on the heels of a significant uptick in its green portfolio which witnessed a  five-fold increase over the past five years -- approximately $600 million. The benchmark $750 million green bond was nearly three times oversubscribed, garnering $2.2 billion in orders from more than 80 institutional and sovereign investors. – TradeArabia News Service