KfW reported an increase in new financing commitments for the first half of 2025, reaching EUR 39.4 billion, which is EUR 4.7 billion higher than the same period last year. The bank noted that domestic promotion saw a significant rise, with new commitments totaling EUR 25.3 billion compared to EUR 20.6 billion in the previous year.
In particular, support for small and medium-sized enterprises (SMEs) focusing on climate, environmental, and innovation projects more than doubled to EUR 6.9 billion from EUR 2.8 billion a year earlier. The “Renewable Energies - Standard” programme experienced strong demand due to lower EU reference rates, with commitments increasing to EUR 3.6 billion from just EUR 5 million previously.
Stefan Wintels, Chief Executive Officer of KfW, stated: “The significantly increased demand from SMEs for KfW loans for climate, environmental and innovation projects is an encouraging sign.” He added: “The companies’ willingness to invest is crucial for employment and growth in Germany as a business location.”
Export and project finance new business reached EUR 11.6 billion, nearly matching last year's high level of EUR 12.3 billion. KfW Development Bank’s commitments rose to EUR 2.0 billion from EUR 1.4 billion in the prior-year period.
Despite pressures stemming from geopolitical challenges affecting valuation results—especially through conservative risk provisions and negative investment outcomes—KfW recorded consolidated earnings of EUR 289 million for the first half of the year (down from EUR 932 million). The economic result before IFRS effects, promotional expense and taxes was reported at EUR 824 million compared with last year's figure of EUR 1,215 million.
Promotional expense funded by KfW’s own resources increased to EUR 246 million (from EUR 181 million), reflecting higher interest rate reductions across new business areas such as start-ups, corporate investments, energy efficiency initiatives and digital education projects like TUMO learning centres.
“The result for the first half of the year reflects KfW’s responsible handling of the increased global risks,” said Stefan Wintels. “At the same time, the excellent operating result underlines our ability to strengthen the German economy and its competitiveness, especially during challenging times: This allowed us to significantly expand our promotional expense.”
Net interest income before promotional expense was steady at around EUR 1.44 billion while net commission income rose slightly due mainly to remuneration for activities performed on behalf of Germany’s federal government.
Total assets stood at EUR 532.9 billion as of June-end—a decrease attributed largely to lower lending volumes and repayments within special coronavirus programmes as well as credit lines provided under energy supplier support packages; these were further impacted by US dollar devaluation.
KfW maintained strong regulatory capital ratios with both total capital ratio and common equity tier-1 capital ratio at approximately 29%.
In sector-specific developments:
- SME Bank saw new commitments double in climate change/environmental priorities.
- Private client funding remained robust with continued focus on energy-efficient building measures.
- Municipal infrastructure lending grew due to investment loan demand.
- KfW Capital's commitments reflected a planned reduction after a one-off fund commitment last year but included initial Impact Facility investments.
- Export/project finance remained near previous highs with notable mobility sector activity including rail transport and renewable energy infrastructure.
- In developing countries/emerging economies support via KfW Development Bank focused heavily on climate/energy projects; DEG funding supported German SMEs’ overseas investment particularly in Africa/MENA regions.
- On financial markets, KfW raised over seventy percent of its annual target funding by mid-year through nearly one hundred bond issuances across nine currencies; green bonds accounted for almost ten percent of this volume so far this year.
Digitalisation efforts included blockchain-based securities purchases and issuance of digital bonds using central bank digital currency technology as part of broader efficiency initiatives within capital market operations.