Cost-to-income ratio (%)

Definition

Cost-to-income represent administrative expenses (net of any non-recurring expenses, as well as pensions and post-retirement costs) divided by income (income net of borrowing costs and non-recurring income) multiplied by 100. Income from treasury is excluded.

Why it matters for the OPEC Fund

The Cost-to-Income Ratio provides a clear measure of the OPEC Fund’s operational financial efficiency, ensuring that operational costs are managed prudently compared to income while maximizing resources available for development activities. Cost-to-income represents administrative expenses (net of any non-recurring expenses, as well as pensions and post-retirement costs) divided by income from operations net of borrowing costs and non-recurring income (excluding income from treasury). It helps strike a balance between cost control and the need to invest in people, systems, processes, and expertise required to originate and manage a growing portfolio effectively.