Mubasher: The Arab Energy Fund, formerly known as APICORP, achieved a record performance in 2024 with the highest-ever net income that was driven by strong asset growth across all business lines, increased efficiencies, and a favourable interest rate environment.
The leading multilateral impact financial institution focused on the MENA energy sector generated a net income of $266 million, which surged by 18% compared with $225 million in 2023, according to a press release.
The fund also registered capital gains through the sale of investments amounting to $11 million.
In addition, the total assets grew by 10.50% YoY to $10.90 billion at the end of 2024.
The CEO of The Arab Energy Fund, Khalid Ali Al Ruwaigh, said: “These remarkable financial results mark the conclusion of a transformative year for The Arab Energy Fund. Our renewed focus on delivering impactful solutions while maintaining strong momentum underscores our commitment to the region."
Al Ruwaigh added: “All our business lines contributed significantly to these results. Guided by our five-year strategy, we continue building a solid foundation for the future, aligning our debt and equity portfolios with our vision of becoming a pre-eminent impact investor in the MENA region, and supporting a more resilient energy ecosystem.”
Backed by its 10 Arab member countries, The Arab Energy Fund is poised to expand its offerings in financing solutions, including loans, equity investments, and financial advisory services. It serves public and private sector partners across more than 35 countries.
Moreover, the corporate banking asset portfolio of the fund grew by 20% YoY to $5.80 billion in 2024, while the net operating income increased by 20% YoY to $119 million, as the business unit expanded its range of financing solutions and entered new markets.
Investments and partnerships recorded an asset portfolio of $1.50 billion, which marked a 5% YoY growth from 2023.
The business unit’s gross operating income reached $89 million with capital gains of $11 million from successful exits.
Treasury and capital markets recorded an asset portfolio of $3.60 billion. Meanwhile, the net operating income increased by 43% YoY to $125 million, mainly due to the optimisation of the fixed income portfolio and the effect of a favourable interest environment.
As of December 2024, the return on equity grew to 8.1% compared with 7.4% in 2023, while the return on assets stood at 2.6% compared to 2.4%. The non-performing loan ratio dropped to 0.5% compared with 0.8% in 2023.
Additionally, the leverage ratio hit 2.3x compared with 2.1x in 2023 and the capital adequacy amounted to 29.1% compared to 29.2%.
