Apicorp’s recent earnings performances have been stellar. The bank announced profits of $95m for 2010, the highest in its 36-year history. Fourth-quarter profits in 2011 grew 86 per cent over the same period in 2010 to $57.5m, while total assets rose 7.4 per cent to more than $4.63bn at the end of December 2011. 

The positive reception of its debut bond in 2011 is testament to its privileged financial position. Moody’s rating affirmation, with a stable outlook, alluded to Apicorp’s strong capitalisation and liquidity position. Leverage is low at 3.1 per cent and its non-performing loan ratio of 0.7 per cent is another source of strength.

Apicorp’s shareholder profile has helped the firm to achieve highly competitive financing rates. The move into midstream and downstream sectors looks well-timed, as does the wider geographic remit. Teaming up with other major multilateral lenders, such as the IFC will also deliver to the bottom line.

Apicorp’s operating environment is, however, challenged by the ongoing political turmoil in the region. The bank acknowledges the Mena region will continue to face uncertain times. However, in the energy sector, it sees sustained increases in demand underpinned by high oil and gas prices.