KfW Bankengruppe surpasses record financing volume of With an overall promotional volume of EUR 70.6 billion, KfW Bankengruppe again generated

Transcription

1 Annual Report 2008

2 2 KfW Bankengruppe surpasses record financing volume of With an overall promotional volume of EUR 70.6 billion, KfW Bankengruppe again generated a high level of promotional activities in 2008 (previous year: EUR 85.5 billion). It even succeeded in increasing the volume of its financing operations by 3.6 % over the previous year to EUR 69 billion (EUR 66.6 billion). The volume of securitisation transactions, in turn, declined markedly from EUR 19 billion to EUR 1.6 billion. This led to a 17.4 % decline in the overall promotional business volume. According to Dr Ulrich Schröder, Chairman of the Managing Board, the year 2008 was an unusual and difficult year for KfW. It was all the more pleasing, he emphasised, that in the year of its 60th anniversary KfW Bankengruppe was able to defy the financial crisis and once again increase its financing volume over the record year 2007.

3 KFW BANKENGRUPPE 3 EUR in billions as at as at as at as at 31 Dec. 31 Dec. 31 Dec. 31 Dec. I. KfW Mittelstandsbank Financing Global loans to commercial banks and Europe Securitisation Advisory support (grants) II. KfW Förderbank Financing Global loans to commercial banks, Europe and general refinancing for promotional institutions of the federal states Securitisation Advisory support (grants) Investment finance Financing Securitisation III. KfW IPEX-Bank Industry, power and basic industries Transport and transport infrastructure IV. KfW Entwicklungsbank V. DEG Total volume Financing Loans Financial / other guarantees Grants ABS SME portfolio Securitisation Advisory support (grants) Environmental and climate protection Funding Group balance sheet total The key figures were computed on the basis of a new statistical concept introduced for KfW as at 31 December For this reason the comparative figures for 2007 are stated according to both the old (non-comparable) and the new calculation method. 1 Calculated according to the old statistical method. 2 Calculated according to the new statistical method. 3 Inclusion of the item of advisory support as at 1 January Commitments made in previous years are not shown. 4 Included in the total volume as general promotional business of KfW Mittelstandsbank and KfW Förderbank. 5 Preliminary balance sheet total before certification by the auditor. Differences in the totals are due to rounding.

4 4 KfW agrees to provide some EUR 40 billion in financing for German enterprises under economic stimulus packages. In the coming years KfW will also perform its role as a promotional bank with vigour in the framework of the German Government's two economic stimulus packages, with a volume of approx. EUR 50 billion (about EUR 25 billion in 2009). Around EUR 40 billion of this sum will be used to finance German enterprises and some EUR 10 billion will be provided for energy efficiency and infrastructure measures. Environmental and climate protection accounted for 28 % of financings in KfW Bankengruppe made a particularly strong promotional commitment in the area of climate and environmental protection. It made around EUR 19.5 billion available for environmental investment in Germany and internationally. This represented 28 % of the overall financing volume. In this way KfW is contributing in a significant manner to implementing the Government's sustainability strategy. The year 2009 will be marked by two priorities: first, KfW will be supporting the German Government in the implementation of the economic stimulus packages. Second, a comprehensive modernisation of KfW has been initiated. Modernising KfW reinforcing its marketing and customer orientation. To optimise our promotional activities we are developing a structure that is more strongly oriented to the needs of the ultimate customer while keeping to the on-lending principle and we are strengthening our marketing. Our aim is to respond even better to the requirements of commercial, private and public customers.

5 KFW BANKENGRUPPE 5 KfW Mittelstandsbank KfW Mittelstandsbank committed EUR 14.3 billion last year (previous year: EUR 24.1 billion) for the promotion of small and medium-sized enterprises. Here, too, the drop is principally due to the sharp decline in securitisations. Programme-related financing business matched the previous year's high level, reaching a total of EUR 11.7 billion. The lower overall financing volume was due to the EUR 1.3 billion decline in global loans. This indicates the first effects of the cyclical downturn and given this environment the result is remarkable. In 2008 KfW also focused on supporting small and medium-sized enterprises. The programmes StartGeld ("Start-up Funds") and Mikrodarlehen ("Microloans") were combined for greater transparency and customer orientation, and the programmes KfW Unternehmerkredit ("KfW Entrepreneur Loan") and Unternehmerkapital ("Entrepreneur Capital") were more closely tailored to the needs of small and medium-sized enterprises. KfW Förderbank The volume of financing operations of KfW Förderbank reached EUR 33.8 billion in 2008 (previous year: EUR 32.2 billion). This marked an increase of 5 %. The overall promotional business volume of KfW Förderbank fell by 18 % from EUR 41.2 billion in 2007 to EUR 33.8 billion as no securitisation transactions were concluded. The programme family Energy Efficient Construction and Rehabilitation contributed substantially to the increase in the financing volume. The aim of the programmes is to reduce CO 2 emissions through energy rehabilitation measures in existing homes and at the same time to strengthen the domestic economy. Under these programmes KfW Förderbank committed loans in a volume of EUR 6.7 billion in 2008 (previous year: some EUR 5 billion). These funds enabled more than 220,000 jobs to be secured for at least a year. This way the

6 6 promotional programme also supports the small and medium-sized construction sector while making a significant contribution to climate protection. The investments co-financed since 2006 have reduced CO 2 emissions sustainably by 2.4 million tonnes per year. Financing for environmental protection investment increased to EUR 7.3 billion (previous year: EUR 7.2 billion). With its programmes KfW supports investors in the industrial and commercial sector in their efforts to comply with environmental, climate and resource protection requirements. In the first quarter the new "Special Fund for Energy Efficiency" was launched specifically for small and mediumsized enterprises. Under this programme around 3,200 enterprises received a KfW grant for qualified and independent energy advice. Another EUR 315 million was provided to enterprises in the form of reduced-interest loans for investment in energy conservation. The financing volume for investment in municipal infrastructure amounted to EUR 2.2 billion. Education finance remained at the previous year's level, with promotional loans amounting to EUR 1.3 billion. Since the student loan programme was launched in April 2006 around 50,000 loans have been committed. KfW Entwicklungsbank and DEG The financing volume of KfW Entwicklungsbank increased by a strong 23 % in 2008, with commitments reaching a new record volume of EUR 3.7 billion (previous year: EUR 3 billion). In addition to funds from the federal budget KfW Entwicklungsbank invested more than EUR 2.1 billion in funds of its own for projects in developing and transition countries. These funds now represent 58 % of KfW Entwicklungsbank's overall commitments. KfW Entwicklungsbank combines its potential as a credit institution with its develop

7 KFW BANKENGRUPPE 7 mental expertise. Furthermore, KfW's subsidiary DEG committed a total of EUR 1.2 billion for investments by private enterprises in developing countries last year. KfW IPEX-Bank KfW IPEX-Bank recorded strong growth in new business in 2008, with some EUR 17.6 billion in new loan commitments (EUR 16.1 billion in the previous year). New commitments in Germany accounted for more than 24 % of this volume while investment projects in Europe took a share of 41 %; the remainder went to investments outside Europe. The international project and export finance bank has been a legally independent subsidiary of KfW Bankengruppe since 1 January Funding To fund its business KfW Bankengruppe raised a total of EUR 75.3 billion in the international capital markets in 2008 (previous year: EUR 64.6 billion). This is the highest refinancing volume in KfW's 60-year history. Given its role in the Economic Stimulus Package II, KfW has now adjusted its funding volume for 2009 to EUR 75 billion.

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