KfW Bankengruppe
Navigation
KfW's business results (First Quarter 2009)
KfW closes first quarter of 2009 with a consolidated profit of EUR 80 million
After two difficult years of heavy losses resulting from the IKB rescue and the crisis of financial markets, KfW is back to earning profits in the first quarter of 2009. The interim accounts of the KfW Group according to IFRS as at 31 March 2009 closed with a consolidated profit of EUR 80 million. The operating result before valuation developed particularly favourably at EUR 660 million, as compared with EUR 359 million in the same period of 2008. KfW was able to benefit from the sharp decline in interest rates in the money and capital markets.
The result was reduced by EUR 157 million from the valuation of derivatives which were used solely to hedge risks. This effect, which is purely a result of the fair value principle applied under IFRS, does not constitute a financial burden for KfW. KfW takes this effect into account in its report of a consolidated profit before hedging, which was EUR 237 million in the first quarter of 2009. The result reported in KfW's individual financial statements, prepared in accordance with the German Commercial Code, is on a similar level.
The negative impacts from the financial and economic crisis were clearly less pronounced in the first quarter of 2009 than in the previous year. The risk situation in the lending business has turned out to be stable considering the difficult economic environment, and the volume of business is growing. The conservative risk provisions were increased by EUR 0.2 billion, reflecting the increasingly more difficult lending environment. Furthermore, charges of roughly EUR 0.2 billion resulted from securities of some EUR 40 billion in the Group's portfolio.
The volume of business rose by 4.8% since 31 December 2008 (EUR 454.1 billion) to EUR 475.8 billion. However, the growth also resulted from the funding volume, which was disproportionately high for the beginning of a year, and which was successfully implemented this year as well in spite of the difficult financial market situation.
Key financial figures for the KfW Group (IFRS)
| Income statement key figures (in EUR millions) | 2009-03-31 | 2008-03-31 |
|---|---|---|
| Operating result before valuation | 660 | 359 |
| of which interest rate reductions | -150 | -141 |
| Consolidated profit / loss | 80 | -497 |
| Consolidated profit / loss before IFRS effects from hedging | 237 | -25 |
| Balance sheet (in EUR billions) | 2009-03-31 | 2008-03-31 |
|---|---|---|
| Total assets | 414.6 | 394.8 |
| Equity | 12.0 | 11.8 |
| Volume of business | 475.8 | 454.1 |
| Key regulatory figures (in %) | 2009-03-31 | 2008-03-31 |
|---|---|---|
| Core capital ratio | 7.8% | 7.8% |
| Total capital ratio | 10.1% | 10.1% |
08 May 2009
Features
Further information
Further information
