KfW sees record promotional business volume but profits hit by COVID-19 impact
Germany's KfW has reported consolidated profit of €525 million in 2020, down from €1.367 billion the previous year as results were hit by the coronavirus panemic.
KfW’s promotional business reached a historical high of €135.3 billion (+75%) during the period. The main drivers of the strong growth were the measures to mitigate the economic impacts of the coronavirus pandemic in Germany and abroad, which totalled €50.9 billion (after deducting cancellations and waivers of commitments amounting to €10.8 billion) and therefore 38% of the total business volume.
In Germany alone, KfW committed around one million loans, grants and other financing totalling €106.4 billion last year. The promotional programmes in the area of energy-efficient construction and refurbishment also contributed to the growth of the promotional business volume (€26.8 billion). Commitments by KfW Capital amounted to a total of €871 million in 2020.
The business sector developing countries and emerging economies increased its business volume by 16% to €12.4 billion. Some €11 billion of this amount was accounted for by KfW Development Bank and €1.4 billion by DEG.
At €16.6 billion, the commitment volume in the export and project finance business sector, which provides financing in the interests of the German and European economy, came in significantly below the 2019 record level of €22.1 billion but remained within the range of the preceding years despite the impact of the coronavirus crisis on global trade.
