KfW after Q3 2025: new commitments grew by 14 % to EUR 61.4 billion

• SME support for climate, environment and innovation more than doubled to EUR 11.1 billion
• Private customers requested EUR 8.1 billion for the Federal Funding for Efficient Buildings, including the promotion of heating systems – an increase of 53 %
• Economic result (consolidated earnings before IFRS effects, promotional expense and taxes) of EUR 1,364 million – consolidated profit of EUR 647 million
• Stefan Wintels: “We are improving the terms of promotion for our customers this year with around EUR 500 million from our own funds”

Frankfurt am Main: In a persistently challenging economic environment, KfW increased its commitments by EUR 7.5 billion – approximately 14 % – in the first nine months. It granted financing totalling EUR 61.4 billion (01-09/2024: EUR 53.9 billion).

Domestic promotion continued to develop very positively throughout the year. New commitments rose to EUR 40.9 billion, significantly exceeding the prior-year figure (01-09/2024: EUR 31.0 billion). This development was driven by the SME segment in particular: demand for financing for climate, environmental and innovation projects rose by EUR 7 billion to EUR 11.1 billion, more than doubling. Particular interest was shown in the “Renewable Energies – Standard” programme, to which EUR 6.7 billion was committed. Commitments also increased due to the significantly lower EU reference rate.

The programmes for private customers were also in high demand. The focus here was on energy-efficient building promotion, including the promotion of heating systems. This amounted to EUR 8.1 billion, which represents an increase of 53 % (01-09/2024: EUR 5.3 billion).

“The sharp increase in demand for KfW promotion for climate, environmental and innovation projects is an encouraging sign. SMEs are investing in key lines of business for the future. This strengthens their long-term competitiveness and makes a significant contribution to securing jobs and growth in Germany,”

said Stefan Wintels, Chief Executive Officer of KfW.

New business in export and project finance reached EUR 16.0 billion, thus remaining below the exceptionally high prior-year figure (01-09/2024: EUR 19.2 billion). At EUR 3.7 billion, commitments at KfW Development Bank were well above the previous year's level (01-09/2024: EUR 2.8 billion). DEG committed around EUR 0.9 billion in financing (01-09/2024: EUR 1.2 billion).

KfW significantly increased promotional expense in domestic business – i.e. the use of its own funds for customers – to EUR 325 million (01-09/2024: EUR 279 million). Promotional expense includes higher interest rate reductions for new business focusing on start-ups and corporate investments, innovation as well as on energy efficiency and renewable energies. KfW’s commitment to digital education in future years within the framework of TUMO learning centres for children and young people has also contributed to the increase in promotional expense.

“Despite the current challenging circumstances, both the operating and economic result proved to be robust. This strengthens KfW’s profitability, which we need in order to effectively support the economy, municipalities and private customers,”

said Stefan Wintels.

“This year, we are improving the terms of our promotion with around EUR 500 million from our own funds.”

At EUR 1,456 million, the operating result for the first three quarters came in slightly above the already strong level achieved in the same period in the previous year (01-09/2024: EUR 1.440 million). This is attributable to the continued strong performance of operating income, which amounted to EUR 2,672 million (01-09/2024: EUR 2,630 million). At EUR 2,174 million, net interest income (before promotional expense), which remains the group’s main source of income, exceeded the previous year’s level (01-09/2024: EUR 2,152 million). At EUR 498 million, net commission income (before promotional expense) also exceeded the prior-year figure of EUR 477 million. This was primarily due to remuneration for promotional activities on behalf of the Federal Government. Despite the implementation of new promotional programmes, administrative expense before promotional expense only increased slightly to EUR 1,217 million (01-09/2024: EUR 1,190 million).

The ongoing challenging geopolitical situation and market volatility had a significant adverse effect on the valuation result – particularly in the areas of risk provisioning and of results from investments. At EUR 647 million, KfW’s consolidated profit in the first three quarters of 2025 was below the prior-year figure of EUR 1,284 million. The economic result, defined as consolidated profit before IFRS effects, promotional expense and taxes, reached EUR 1,364 million (01-09/2024: EUR 1,627 million).

The negative risk provision result in lending business totalling EUR 130 million was largely attributable to additions to general credit risk provisions (01-09/2024: EUR +129 million). Increased provision for individual exposures at risk of default also contributed to this result. Overall, risk provisions take account of global economic uncertainties.

The valuation result from the investment portfolio of EUR -104 million was mainly influenced by the significantly weaker US dollar (01-09/2024: EUR - 2 million). This had an effect particularly on the DEG business unit, where the positive performance in the securities result was significantly overshadowed by the weaker US dollar. Conversely, the portfolio results of KfW Capital and KfW Development Bank developed positively.

Taxes on income amounted to EUR 116 million (01-09/2024: EUR 185 million). Purely IFRS-related valuation effects from derivatives used for hedging purposes reduced earnings by EUR 277 million (01-09/2024: EUR +121 million).

At EUR 546.6 billion, total assets were roughly on par with the previous year's level (EUR 545.4 billion). This was mainly the result of higher liquidity holdings that were offset in part by a downturn in the volume of lending. Repayments in the coronavirus special programme and in the credit lines in the package of measures for energy suppliers contributed to this downturn, which was strengthened by the strong devaluation of the US dollar.

With a total capital ratio and (common equity) tier 1 ratio of 28.7 %, the regulatory capital ratios remained at a very good level (30 June 2025: 29.0 per cent). The moderate downturn in capital ratios resulted from an increase in total risk amount, which was primarily due to new business as well as to a methodical advancement in credit risk assessment.

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 stood at EUR 32.9 billion as of 30 September 2025, significantly exceeding the previous year's level (01-09/2024: EUR 23.9 billion).

SME Bank

The SME Bank recorded particularly encouraging growth: in the first nine months of the year, EUR 16.2 billion in new promotional funds was committed. This was almost twice as much as in the same period of the previous year (01-09/2024: EUR 8.6 billion). All priority areas developed positively.

The priority area of energy efficiency and renewable energies reached EUR 5.0 billion (01-09/2024: EUR 4.5 billion).

In the area of climate change and the environment, promotional business volume rose to EUR 9.1 billion, significantly exceeding the previous year's figure (01-09/2024: EUR 3.1 billion). This was mainly due to the “Renewable Energies – Standard” programme, to which EUR 6.7 billion was committed (01-09/2024: EUR 6 million). A key reason for the sharp increase was the significantly lower EU reference interest rate compared to the previous year, which enabled a return to more attractive financing terms.

Interest in innovation financing was also significantly higher than in the prior-year period. New commitments almost doubled to EUR 2.0 billion (01-09/2024: EUR 1.0 billion). This was also due to the ERP grant introduced in February, which has been well received by the market.

As of 1 July 2025, KfW restructured its product offerings in the field of innovation and digitalisation. In addition to low-threshold promotion for smaller companies, staggered promotional intensities were introduced – the more demanding the project, the higher the promotion. Significant support will be given to the use and development of technologies of the future, in particular artificial intelligence. In addition, the new KfW Digitalisation Check provides impetus for SMEs to take a strategic approach to digitalisation. In the new innovation and digitalisation programmes, applicants received commitments of EUR 0.3 billion in the third quarter.

Private Clients

At EUR 16.8 billion at the end of September, new commitments in the Private Clients segment exceeded the prior-year level (01-09/2024: EUR 15.3 billion).

The increase is primarily attributable to the priority area of energy efficiency and renewable energies, which reached a significantly higher commitment volume of EUR 11.0 billion (01-09/2024: EUR 9.5 billion). In the Federal Funding for Efficient Buildings including the promotion of heating systems, the volume of new commitments rose to EUR 8.1 billion (01-09/2024: EUR 5.3 billion). In the prior-year period, promotion of heating systems had started only at the end of February and was then opened gradually to all applicant groups.

At EUR 4.6 billion, the residential and housing sector reached the good level of the previous year. This is mainly due to the continued strong demand in the Home Ownership programme, to which EUR 3.8 billion was committed as in the previous year.

At around EUR 1.2 billion, the area of education was also on a par with the previous year.

2. Customised Finance and Public Clients

The Customised Finance and Public Clients business sector reached a commitment volume of EUR 7.6 billion in the third quarter of 2025, exceeding the prior-year figure by approx. EUR 1.3 billion.

A volume of almost EUR 5.0 billion was committed in the municipal and social infrastructure segment. The significant increase compared to the previous year was largely due to strong demand for investment loans for municipalities and municipal enterprises, as well as high commitments in the programmes to promote sustainable mobility (01-09/2024: EUR 3.3 billion).

With a volume of EUR 281 million, customised finance for corporates remained somewhat below the prior-year figure (01-09/ 2024: EUR 331 million).

With a business volume of EUR 2.3 billion, individual financing for banks and promotional institutions of the federal states remained below the previous year's figure of EUR 2.7 billion. This is primarily due to slightly lower demand for general funding from the promotional institutions of the federal states and developments in the refinancing of export credits covered by federal guarantees, which was exceptionally strong in the previous year.

3. KfW Capital

The commitments of the KfW Capital business sector amounted to EUR 366 million in the third quarter of 2025 and were thus roughly on par with the prior-year level (01-09/2024: around EUR 312 million, excluding a one-off commitment of EUR 500 million for the HTGF Opportunity Fund newly introduced as part of the Future Fund. At least the funds contributed by KfW Capital to the venture capital funds will be invested in start-ups in Germany. KfW Capital’s investment pipeline is well stocked until the end of the year.

KfW Capital also acts as an investment adviser for the Growth Fund Germany, which at around one billion euros is among the largest venture capital funds in Europe, and for which substantial private capital was raised. By 30 September 2025, the umbrella fund had already committed around EUR 800 million to 40 target funds.

4. KfW IPEX-Bank

KfW IPEX-Bank, which is responsible for the export and project finance business sector and provides financing to support German and European businesses in global markets, continued its successful year. At EUR 16 billion, however, its new commitments at the end of the third quarter were slightly below the exceptionally high level of the previous year (01-09/2024: EUR 19.2 billion). All sector departments contributed to new business. Particularly noteworthy once again was the “Mobility” business area, which bundles the segments of rail traffic, the maritime industries and aviation and accounted for close to a third of total commitments at EUR 5.1 billion (01-09/2024: EUR 6.9 billion). In the third quarter, financing was provided for the Port of Duisburg, trams in Stuttgart and the Rhine-Neckar region, a data centre in Frankfurt, as well as wind farms in Turkey with turbines produced in Germany. With its financing, KfW IPEX-Bank is supporting Germany and Europe as an economic centre as well as the transformation process around the globe.

5. Promotion of developing countries and emerging economies

KfW Development Bank

The KfW Development Bank business sector committed a total of EUR 3.7 billion to new financing (01-09/2024: EUR2.8 billion ). The majority – EUR 2.9 billion – was funded by KfW through the capital market rather than from the federal budget. The largest individual commitment in the third quarter was a loan of EUR 500 million for the energy transition in South Africa. As the largest bilateral partner, Germany has supported the Just Energy Transition Partnership (JETP) since its inception – it opens up opportunities for exports and investments of German companies. A good EUR 480 million has been committed to programmes focusing on the core themes of peace and social cohesion, with the main recipient countries located in the crisis regions of the Middle East and the Horn of Africa.

DEG

By the end of the third quarter, DEG had committed EUR 922 million for investments by private companies in developing countries and emerging economies (01-09/2024: EUR 1.2 billion). This included financing for basic food producers and financial service providers. Consultancy services were also agreed, for example, for sustainability management or resource and energy efficiency checks.

The regional focal points of the financing commitments were in Latin America (EUR 291 million), Europe/Caucasus (EUR 233 million) and Africa (EUR 205 million). Commitments for Asia reached EUR 145 million, while DEG provided EUR 48 million for supra-regional projects.

With its financing and consulting services, DEG continues to support transformation processes to strengthen the resilience of companies in challenging markets.

6. Financial markets

Between January and September 2025, KfW raised EUR 67.1 billion on the international capital markets to fund its promotional business (01-09/2024: EUR 67.6 billion). This is close to the target of around EUR 70 billion planned by the end of the year. In the first nine months, large-volume benchmark bonds in euros and US dollars accounted for a good EUR 41 billion (61 %) of the funds raised. Net proceeds from green bonds amounted to close to EUR 13 billion (19 %), significantly exceeding the target for the year of EUR 10 billion. This underlines the high strategic importance of green bonds in the funding mix and KfW’s sustainable orientation.

Alongside the euro, which constituted the largest share of capital market funding at 58 %, the US dollar also made a significant contribution at 25 %. KfW also issued bonds in eight other currencies, including the Hong Kong dollar, which, with a converted funding volume of EUR 1.6 billion and accounting for 2.4 % of the total capital market funding this year, secured fourth place in KfW’s currency mix for the first time.

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