Germany’s KfW revenue drops slightly despite strong fundamentals

Germany’s KfW revenue drops slightly despite strong fundamentals

Germany’s state-owned development bank, KfW said the group’s promotional activity achieved a total volume of EUR 36.1 billion for the first half of 2018 (same period in the previous year: EUR 36.5 billion).

With a commitment volume of EUR 27.1 billion, domestic promotion is again at the previous year’s high level (EUR 27.6 billion). This was mainly driven by the strong demand in housing finance. At EUR 8.2 billion, the business volume in KfW’s international financing is close to the previous year’s figure of EUR 8.3 billion. New commitments in KfW IPEX-Bank’s business sector rose to EUR 6.7 billion (EUR 5.7 billion), in line with expectations.

At EUR 1.2 billion, the volume of commitments at KfW Development Bank came in lower in comparison to the previous year’s figure (EUR 2.1 billion). However, the financing volume for 2018 as a whole is expected to reach a level similar to the previous year. DEG committed financing in the amount of EUR 0.4 billion (EUR 0.5 billion).

“The strong economic situation in Germany has resulted in a successful first half of the year for KfW’s promotional business. There has been a great deal of demand for our energy efficiency programmes for SMEs and private costumers, confirming the importance of our work in the field of the environment and sustainability. We are also pleased with the high level of interest that businesses have been showing in our enhanced promotional offers for innovation and digitalisation,” says Dr Günther Bräunig, Chief Executive Officer of KfW Group.

To fund its promotional business, KfW raised long-term funds in twelve different currencies on the international capital markets amounting to the equivalent of EUR 46.3 billion (EUR 46.9 billion) as of 30 June 2018 and looks back on a successful first half. Funding requirements for the year 2018 as a whole have been increased from initially EUR 70 to 75 billion to a total of EUR 75 to 80 billion.