KfW has reported a strong financial position as it transitions into 2025, with plans to support the new German Federal Government's growth initiatives. During an annual results press conference in Frankfurt, Stefan Wintels, Chief Executive Officer, stated, "The new German Federal Government has a lot of plans in place to strengthen Germany as an economic location. KfW boasts wide-ranging expertise in numerous areas that the German Federal Government has identified as future fields. This is something we can bring to the table immediately."
Despite a slight decrease from the previous year, KfW's 2024 financial results indicate solid performance. The group reported a profit of EUR 1.4 billion, just below the 2023 figure of EUR 1.6 billion, with an operating result of EUR 2.1 billion, exceeding the prior year by 11.4%.
KfW utilized EUR 500 million of its own funds in the promotional business to enhance promotion conditions, the highest figure in over a decade. This was directed towards small and medium-sized enterprise (SME) promotion, digitalization, and environmental initiatives.
Stefan Wintels said, "The 2024 financial year once again showed that KfW has significant financial clout. We want to use this to strengthen Germany’s competitiveness and resilience."
KfW's financial solidity is evident, with the tier 1 capital ratio reaching 30.2% by the end of 2024. Total capital ratio stood at 30.3%. However, the implementation of the Capital Requirements Regulation III caused equity ratios to drop by around 2 percentage points by February 2025, but they still remain at high levels.
The group's promotional business volume for 2024 was EUR 112.8 billion, with a slight increase in domestic promotional business to EUR 79.0 billion. Private Clients and Customised Finance & Public Clients segments saw growth, while SME promotion decreased due to economic factors.
KfW Capital committed EUR 1.6 billion to start-ups and innovative technology firms, alongside a near-record EUR 23.9 billion in export and project finance. Meanwhile, commitments to developing countries and emerging economies reached EUR 10.3 billion.
In the words of Stefan Wintels, "Even in turbulent times and despite declining budget funds, we are doing everything we can to support our partner countries in improving economic prospects, protecting the climate and the environment, combating poverty and hunger, and securing peace. As an export nation, Germany continues to rely on global networking."
Early 2025 saw KfW's new business total EUR 11.2 billion, a slight increase from the previous year. Retail clients showed strong interest in energy-efficient building initiatives, while export and project finance commitments amounted to EUR 3.2 billion.
KfW continues its emphasis on promotion, with a consolidated profit reduction attributed to increased promotional expenses. Bernd Loewen, KfW's Chief Financial Officer, commented, "The slight decline in earnings is largely due to KfW using significantly more of its own funds for promotion. We will continue on this path, because we at KfW are aware of our social responsibility, especially in times like these."
KfW has published its sustainability report, adhering to the European Sustainability Reporting Standards on a voluntary basis.