Press Release from 2023-11-09 / Group, Investor Relations, Domestic Promotion

KfW – strong growth in export financing in the first nine months

  • Consolidated earnings rise to EUR 1.2 billion and are thus above the average for the last five years
  • Promotional business volume is EUR 80.8 billion
  • Export and project finance almost doubles to EUR 20.7 billion
  • Tier 1 capital ratio rises to 28.5%

Frankfurt am Main – In the first three quarters of 2023, KfW Group’s consolidated profit amounted to EUR 1.2 billion (for comparison: 09/2022: EUR 993 million), which is above the average for the past five years (around EUR 1.1 billion).

The promotional business volume amounted to EUR 80.8 billion and was thus – after the exceptional year of 2022 – slightly above the level of the years before the outbreak of the war in Ukraine (09/2021: EUR 73.1 billion, 09/2022: EUR 127.9 billion).

The volume of domestic promotion was EUR 57.9 billion in the first three quarters of 2023, against EUR 60.3 billion in 2021, but significantly below the value of 2022 (09/2022: EUR 112.5 billion).

New business in export and project finance almost doubled and amounted to EUR 20.7 billion (09/2022: EUR 11.7 billion).

KfW Capital’s commitment volume increased by around 200% in the reference period to roughly EUR 1.8 billion (09/2022: around EUR 0.6 billion). This strong development is due, among other things, to the doubling of the commitments of the “ERP-VC Fund Investments” programme, the commitments of the new “Green Transition Facility” and the commitments for the equity components of the Future Fund.

Stefan Wintels, Chief Executive Officer of KfW:

“The German economy is facing enormous challenges during the present decade. Without additional capital to invest in innovation, the transformation will not succeed. At KfW, we are supporting change at many levels – for example as a venture capitalist, but also as an anchor investor or financier in the sectors that are important for the future of our country.”

At EUR 2.1 billion (09/2022: EUR 2.5 billion), KfW Development Bank’s commitments are slightly lower than in the prior-year period. Expected new commitments have been postponed to the fourth quarter. DEG recorded positive new business of EUR 0.9 billion (09/2022: EUR 0.8 billion).

The operating result before valuation (before promotional expense) amounted to EUR 1.3 billion, which is above the prior-year result of EUR 1.2 billion. At just under EUR 2 billion (09/2022: EUR 1.8 billion), net interest income (before promotional expense) is increasingly benefiting from the rise in interest rates and remains the group’s main source of income. Net commission income of EUR 445 million (before promotional expense) was roughly on a par with the prior-year figure of EUR 464 million. Administrative expense (before promotional expense) of EUR 1.1 billion (09/2022: EUR 1.07 billion) were only slightly above the prior-year level.

Due to an environment of increasingly high interest rates, demand for interest rate reductions rose significantly compared with previous years. KfW provided increased support here at the expense of its own earnings position through increased promotional expense in domestic business. At EUR 261 million, this was significantly higher than the previous year (09/2022: EUR 181 million).

The valuation result was characterised by positive contributions from risk provisions for lending business and the purely IFRS-related valuation effects from derivatives, while the investment portfolio made a small positive contribution to earnings.

The positive risk provision result in lending business totalling EUR 165 million (09/2022: EUR -129 million) was primarily due to the very good risk situation of KfW’s loan portfolio and the reversal of crisis-related general risk provisions. This is reflected in a clearly positive contribution to earnings from risk provisions for lending business for performing loans. The very low net expenses for non-performing loans can clearly be more than offset by recoveries of receivables that had been written off.

The purely IFRS-related effects from the valuation of derivatives used for hedging purposes overstated the earnings position by EUR 142 million (09/2022: EUR -66 million). At EUR 1.08 billion, consolidated profit before IFRS effects from hedging, which is relevant for KfW’s management, was slightly above the previous year’s level (09/2022: EUR 1.06 billion).

With a total capital ratio and a (common equity) tier 1 capital ratio of 28.5% (30 June 2023: 27.5%), the regulatory equity ratios and thus the risk-bearing capacity have been further strengthened.

Details on the business sectors’ promotional activities

1. SME Bank and Private Clients

In the SME Bank and Private Clients business sector, the promotional business volume amounted to EUR 26.5 billion as of 30 September 2023 (09/2022: EUR 57.2 billion). Of this, EUR 14.2 billion was attributable to the SME Bank commercial segment (09/2022: EUR 28.5 billion) and EUR 12.3 billion to the Private Clients segment (09/2022: EUR 28.7 billion).

New commitments amounting to EUR 6.2 billion were made in the priority area of start-ups and corporate investment by 30 September 2023 (09/2022: EUR 9.5 billion). The downturn compared with the same period of the previous year is also due to the discontinuation of the special programmes for coronavirus aid in the middle of last year. The ERP promotional loan for small and medium-sized enterprises, newly introduced in 2022, is experiencing pleasingly high demand. Loans amounting to EUR 5.3 billion were committed here (09/2022: EUR 3.6 billion).

By the end of September 2023, new commitments amounted to EUR 6.8 billion in the priority area of climate change and the environment (09/2022: EUR 17.6 billion). The downturn is mainly due to changes in the programme conditions in the Federal Funding for Efficient Buildings (BEG). In the Climate action campaign for SMEs programme, the new commitment volume at the end of the third quarter is EUR 1.4 billion, significantly exceeding the prior-year figure (09/2022: EUR 0.6 billion).

At EUR 1.2 billion, the volume of new commitments in the priority area of innovation is almost at the previous year’s level (09/2022: EUR 1.4 billion).

Private Clients: Focus on energy efficiency and renewables

At EUR 7.5 billion, the majority of the promotional business volume in the Private Clients segment can be attributed to the priority area of energy efficiency and renewables (09/2022: EUR 24.1 billion). The significant downturn compared to the same period last year is due to a realignment of Federal Funding for Efficient Buildings. In addition, roughly EUR 300 million was committed in the solar power programme for electric cars, which was launched at the end of September.

The promotional business volume in the residential and housing sector slightly exceeded the previous year’s level with new commitments amounting to EUR 3.3 billion (09/2022: EUR 3.2 billion). At EUR 3.2 billion, the residential property programme significantly boosted the new commitment volume (09/2022: EUR 2.5 billion).

In the area of education, new commitments as of 30 September 2023 were at around EUR 1.4 billion, the same level as the previous year (09/2022: EUR 1.4 billion).

2. Customised Finance and Public Clients

The Customised Finance & Public Clients business sector generated a commitment volume of around EUR 29.7 billion as of the third quarter of 2023. In particular, prolongations and the associated restructuring of mandated transactions for energy companies (EUR 11.5 billion) from the first quarter of 2023 and the implementation of emergency aid and the gas price brake on behalf of the German Federal Government (EUR 10.8 billion) contributed to this high result. The commitment volume of the previous year was even higher due to the mandated transactions in the energy sector (09/2022: EUR 54.7 billion).

Customised finance for corporates recorded a commitment volume of EUR 11.7 billion (09/2022: EUR 46.7 billion), including the aforementioned prolongations and associated restructurings of mandated transactions for energy companies (EUR 11.5 billion).

The volume of business for municipal and social infrastructure was significantly higher than in the previous year, with new commitments of over EUR 14.3 billion (09/2022: EUR 5.2 billion). The increase resulted in particular from disbursements of EUR 10.8 billion from the Federal Government’s emergency aid / price brake for gas and heat.

With a volume of business of EUR 3.6 billion, individual financing for banks and promotional institutions of the federal states significantly exceeded the figure for the respective prior-year period (09/2022: EUR 2.8 billion).

3. KfW Capital

Commitments in the KfW Capital business sector amounted to around EUR 1.8 billion as at the third quarter of 2023, which compared with the prior-year period (09/2022: EUR 572 million) represents an increase of 200%. On the one hand, the increase is due to the doubling of the commitments of the KfW Capital instruments “ERP VC fund investments” (from EUR 89 million to EUR 160 million) together with the Green Transition Facility (EUR 24 million) newly introduced in 2023, which invests in climate funds, using KfW funds. On the other hand, the commitments of the equity components of the Future Fund are leading to a significant increase. The “European Tech Champions Initiative” modules implemented by the European Investment Fund (EIF) with KfW fiduciary funds from the Future Fund received EUR 800 million (for the first time in 2023) and the “GFF-EIF Growth Facility” EUR 477 million (09/2022: EUR 251 million) for commitments in VC funds. The new Deep Tech Future Fund, also a component of the Future Fund, received a one-off commitment from fiduciary funds this year amounting to EUR 215 million. The VC ecosystem is being strengthened through KfW Capital’s own programmes as well as through the modules of the Future Fund, which KfW Capital coordinates on behalf of the German Federal Government, to provide start-ups and innovative technology companies in Germany with better access to risk capital.

4. KfW IPEX-Bank

At KfW IPEX-Bank, which is responsible for the Export and project finance business sector and provides financing to support German and European businesses on the global markets, its very good start to the year continued. At EUR 20.7 billion at the end of the third quarter, their new commitments remained almost twice as high as in the same period last year (09/2022: EUR 11.7 billion). All business sectors contributed to new business. Particularly noteworthy are both the “Industry and Services” sector with EUR 4.7 billion (09/2022: EUR 2.3 billion) and the “Power and Environment” sector with EUR 4.1 billion (09/2022: EUR 1.9 billion).

In particular, financing was provided for the expansion of fibre optics in Germany and Europe (e.g. in Finland, Spain and Poland), the heating transition (e.g. district heating in Hamburg and the development of innovative heating systems by Vaillant), rail traffic and e-mobility (e.g. NEoT Green Mobility in France and Gridserve charging infrastructure in the UK), as well as offshore wind farms in the North and Baltic Sea, which KfW IPEX-Bank is using to support the economy and society in the transformation process.

5. Promotion of developing countries and emerging economies

KfW Development Bank

As at the third quarter of 2023, KfW Development Bank recorded commitments of EUR 2.1 billion for projects in developing countries and emerging economies (09/2022: EUR 2.5 billion). The predominant share of funds, amounting to EUR 1.2 million, went to countries in Africa and the Middle East, of which EUR 720 million were federal budget funds. EUR 756 million was committed for projects that are attributable to the Federal Ministry for Economic Cooperation and Development (BMZ) core topic of “climate and energy, just transition”.


DEG is recording further dynamic development of new business in 2023: EUR 856 million was committed by the end of the third quarter for investments by private companies in developing countries and emerging markets (09/2022: EUR 821 million). For example, banks in developing countries received long-term loans to set up credit lines for small and medium-sized enterprises. Around one fifth of new commitments are equity investments. Regional focal points of DEG commitments are Latin America and Asia, followed by Africa/MENA. In addition, a further EUR 326 million was mobilised by private donors, including for renewable energy projects.

6. Financial markets

In the first nine months of the 2023 financial year, KfW invested EUR 452 million in green bonds as part of its existing promotional mandate. The total volume of the portfolio is around EUR 2.6 billion as of 30 September 2023.

KfW raised funds of EUR 75.1 billion in the international capital markets to fund its promotional business during the period from January to September (09/2022: EUR 78.2 billion). In addition to the euro, which contributes 57% to capital market funding, the US dollar in particular, which is in strong demand from investors in the current market environment, at 26% makes an important contribution once again. KfW also issues bonds in seven other currencies, including British pounds (10%) and Australian dollars (4%). With regard to the funding instruments, the majority (67%) of borrowing on the capital market is made through the issue of benchmark bonds. Green bond issues contributed EUR 8.5 billion, or 11%, and private placements 5% to the total funding in the first nine months.

At the end of September, KfW increased its originally planned funding volume for 2023 by EUR 5 billion to around EUR 90 billion due to good business development, particularly at the subsidiary KfW IPEX-Bank, and increased liquidity requirements. The proceeds are also intended to be used for prefinancing for the expected liquidity requirement next year. At the end of October, the funding volume amounted to EUR 88.6 billion, including EUR 11.8 billion in green bond issues.

Key figures of the income statement (EUR in millions)01/01/2023 – 30/09/202301/01/2022 – 30/09/2022
Operating result before valuation (before promotional expense)1,3201,199
Promotional expense261181
Consolidated profit1,224993

Consolidated profit before IFRS effects from
Key figures of the statement of financial position (EUR in billions)30/09/202331/12/2022
Total assets555.2554.6
Volume of business709.7709.6
Key regulatory
figures (in %) 1)
(Common equity) tier 1 capital ratio28.527.5
Total capital ratio28.527.5

1) The capital ratios stated take into account the eligible interim results according to Art. 26 (2) of the Capital Requirements Regulation, which deviate from the respective annual results in accordance with IFRS.

An overview of the business and promotional figures is available in table form at:
Business and Promotional Figures | KfW

KfW Annual Report online:
Reporting Portal | KfW


Portrait von Sybille Bauerfeind