Apicorp reports soaring profits
Apicorp almost doubled its third quarter net profit between 2011 and 2012 by growing its lending capacity while managing risks.
The multilateral development bank’s Q3 2012 net profit rose by 90% to US$12.67mn from US$6.68mn in Q3 2011. Its cumulative net profit for the first three quarters of this year reached US$63.2mn, up 33% from the US$47.5mn recorded over the same period last year. Total assets rose by 13% to reach US$ 5.1bn, compared to US$ 4.5bn at the end of September 2011.
Ahmad Bin Hamad Al-Nuaimi, chief executive and general manager of Apicorp, says: “Apicorp’s ability to enhance its lending capacity on the back of its capital base expansion and funding diversification not only makes it stand out in today’s tough banking environment, but is also delivering results for Apicorp’s shareholders and resulted in last month’s rating upgrade by Moody’s from A1 to a double Aa3.
“In 2012, we expanded our array of value offerings aimed at supporting energy companies through a series of initiatives that included a partnership with JP Morgan to expand our energy trade finance services to the Arab world and beyond. At a time when international bank financing resources are getting scarcer in the region, we expect Apicorp to play an even more significant role in supporting energy-related transactions and being a growth-enabler for the Arab hydrocarbon industry.”
At its board meeting in Cairo at the beginning of October, Apicorp’s board approved loans worth US$387mn, as well as trade financing facilities worth US$277mn and letters of credit to institutions within and outside the Arab region.
Earlier this year, the bank’s board ratified a five-year term loan worth SR440mn (US$117mn) towards financing its operations. It also approved a SR500mn (US$133mn), five-year term loan, as well as Apicorp’s first-ever shariah-compliant facility, a SR2.5bn (US$667mn), three-year loan oversubscribed by Saudi banks.