• New commitments grew by 36 percent to EUR 24.1 billion

• Significant 44 percent increase in SME support for innovation, climate and the environment

• Demand from private customers for Federal Funding of Efficient Buildings, including heating systems, remains high

• KfW perpetuates its contribution of own funds with EUR 120 million

• Economic result up 50 percent to EUR 594 million – consolidated profit at EUR 380 million

• Stefan Wintels: "KfW is leveraging its financial stability significantly more than in the previous year to support customers, promote growth, and drive sustainable change"

Frankfurt a. M. - KfW Group has started the year very well and committed financing amounting to EUR 24.1 billion in the first quarter (01-03/2025: EUR 17.7 billion). Despite the persistently challenging economic conditions, new business has grown by around 36 percent. This was particularly evident in domestic promotion amounting to EUR 17.1 billion (01-03/2025: EUR 12.5 billion):

In Germany, demand picked up in the SME sector, particularly for innovation, environmental and climate projects (EUR 4.9 billion against EUR 3.4 billion in the prior-year period).

Thanks to the positive market environment and attractive terms, demand under the “Renewable Energies – Standard” programme rose to EUR 3.4 billion (01-03/2025: EUR 2.0 billion). The programmes for private customers also were in very high demand. The focus here continued to be on energy-efficient building promotion, including promotion of heating systems. At KfW Capital, too, the commitments for fund investments surged to EUR 150 million (01-03/2025: EUR 41 million).

"The continued strong demand for KfW promotion shows: Companies and private customers are investing in a future-oriented way, even in a challenging economic environment. This is a positive signal for sustainable growth and employment in Germany,"

said Stefan Wintels, Chief Executive Officer of KfW.

New business in export and project finance rose to EUR 5.0 billion (01-03/2025: EUR 4.5 billion). This is due to large individual transactions that are not spread evenly over the year. KfW Development Bank recorded a significant increase to EUR 1.8 billion (01-03/2025: EUR 0.5 billion) and thus exceeded the prior-year level by more than three times. This is mainly due to a number of large-volume commitments. A major part of these commitments consists of KfW funds. German and European economic interests have come more into focus. At EUR 0.2 billion, DEG achieved a doubling of commitments compared to the prior-year period (01 03/2025: EUR 0.1 billion).

In the first quarter, KfW Group achieved an economic result (group earnings before IFRS effects, promotional expense and taxes) of EUR 594 million, which was around 50 percent higher than the previous year's figure of EUR 385 million. This enabled KfW to use EUR 120 million (01-03/2025: EUR 115 million) of its own funds in the promotional business to improve conditions. The focus was on promoting start-ups and corporate investments, innovation, energy efficiency and renewable energy. Consolidated profit amounted to EUR 380 million, significantly exceeding the prior- year figure (01-03/2025: EUR 117 million).

"Our economic result demonstrates KfW’s stable profitability. It enables us to provide targeted support to companies, municipalities and private households - especially in times of particular challenges,"

said Wintels. At EUR 525 million, the operating result before valuation and promotional expense was significantly above the already high level of the prior-year period (01-03/2025: EUR 432 million). This is attributable to the continued strong performance of operating income, which amounted to EUR 923 million (01-03/2025: EUR 831 million). Net interest income (before promotional expense), which remains the group’s main source of income, amounted to EUR 747 million, significantly exceeding the previous year’s figure of EUR 658 million. Net commission income (before promotional expense) stood at EUR 176 million, matching the previous year’s level (01-03/2025: EUR 173 million). At EUR 398 million, administrative expense (before promotional expense) remained stable at prior-year level (01-03/2025: EUR 399 million).

The valuation result was characterised by positive results from equity and foreign currency valuation, offset by charges from risk provisions for lending. Despite the increasingly challenging geopolitical and macroeconomic situation regarding the Middle East, the result from risk provisioning remained very moderate, with a net expense of EUR 36 million (01-03/2025: EUR 34 million). The result is based on additions to general risk provisions for lending and to specific loan loss provisions. This was offset by recoveries on loans written-off.

The investment portfolio contributed EUR 74 million to the positive valuation result (01-03/2025: EUR 30 million). This was mainly due to the positive developments in the valuation result at KfW Capital and DEG.

The result from the valuation of foreign currency positions in the amount of EUR 15 million (01-03/2025: EUR –52 million) mainly resulted from DEG investments held in foreign currency and their partial hedging.

Taxes on income amounted to EUR 46 million (01-03/2025: EUR 33 million). Purely IFRS-related valuation effects from derivatives used for hedging purposes reduced earnings by EUR 48 million (01-03/2025: EUR –120 million).

Total assets stood at EUR 531.9 billion, which was EUR 8.8 billion lower than at the end of 2025 (EUR 540.7 billion). This development was primarily due to a decline in cash holdings, which was partly offset by a slight increase in volume of lending.

With a total capital ratio of 28.5 percent and a (common equity) tier 1 capital ratio of 28.4 percent, the regulatory capital ratios remained at a very good level (31 December 2025: 27.7 percent). The increase in equity ratios was mainly due to the inclusion of the result for the second half of 2025.

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 14.8 billion as of 31 March 2026, significantly exceeding the previous year's level (01-03/2025: EUR 10.9 billion).

SME Bank

At the end of the first quarter, new commitments in the SME Bank amounted to more than EUR 7.0 billion (01-03/2025: EUR 4.9 billion).

In the promotional priority area of start-ups and corporate investment, new commitments at EUR 2.1 billion exceeded the prior-year result (01-03/2025: EUR 1.6 billion).

EUR 4.2 billion (01-03/2025: EUR 2.9 billion) was committed to the area of climate change and the environment. Here, a strong increase in demand to EUR 3.4 billion (01-03/2025: EUR 2.0 million) was particularly evident in the Renewable Energies - Standard programme.

Demand for innovation financing was EUR 0.7 billion, and thus slightly higher than in the prior-year period (01-03/2025: EUR 0.5 billion).

Private Clients

At EUR 7.9 billion, new commitments e in the Private Clients segment were significantly higher than at the end of March 2025 (01-03/2025: EUR 5.9 billion).

New commitments amounting to EUR 6.0 billion were made in the priority area of energy efficiency and renewable energies (01-03/2025: EUR 3.9 billion). The increase was largely due to higher new commitments in the Climate-friendly Construction programme (EUR 2.5 billion compared to EUR 0.9 billion in the previous year), due to the reintroduction of the Energy Efficiency standard 55. Federal Funding for Efficient Buildings, including promotion of heating system replacement, at EUR 3.0 billion reached the previous year’s level (01-03/2025: EUR 2.9 billion).

In the area of residential and housing, the prior-year figure was maintained with new commitments of EUR 1.5 billion (01-03/2025: EUR 1.6 billion).

At around EUR 0.4 billion, the education segment also reached the previous year’s level (01-03/2025: EUR 0.4 billion).

2. Customised Finance and Public Clients

The Customised Finance and Public Clients business sector reached a commitment volume of EUR 2.1 billion in the first quarter of 2026, exceeding the previous year's figure (01-03/2025: EUR 1.6 billion).

A commitment volume of around EUR 75 million was recorded in the Customised finance for corporates segment (01-03/2025: EUR 129 million). It was encouraging to see commitments made within the start-up programme Venture Tech Growth Financing.

The volume of business for municipal and social infrastructure exceeded the already high figure for the previous year, with new commitments of EUR 1.5 billion (01-03/2025: EUR 1.2 billion). This development is mainly due to increased demand in the basic programmes Investment Loan for Municipalities and Investment Loan for Municipal Enterprises as well as a larger individual transaction in the promotion of sustainable mobility.

With a business volume of around EUR 570 million, Individual financing for banks and promotional institutions of the federal states exceeded the prior-year figure of EUR 306 million. General funding for promotional institutions of the federal states contributed EUR 458 million to this interim result.

3. KfW Capital

Commitments of the KfW Capital business sector have more than tripled in the first quarter to EUR 150 million (01-03/2025: EUR 41 million): KfW Capital invested around EUR 77 million (01 -03/2025: EUR 10 million) in European VC funds with a focus on Germany in the first three months of the year via the European Recovery Programme Venture Capital Fund Investments (ERP-VC Fund Investments). In addition, a further around EUR 73 million (01-03/2025: EUR 0 million) were committed fiduciarily to the European Investment Fund (EIF) as part of the Future Fund.

KfW Capital is also the initiator and investment adviser of "Growth Fund Germany", one of the largest VC fund-of-funds in Europe with a volume of EUR 1 billion. More than two thirds of the capital comes from private sector investors (institutional investors and large family offices). The fund is almost out-invested: Including the first quarter of 2026, 885 million euros have already been committed to VC funds.

The relatively high commitment volume already at the beginning of the year is a strong signal for the VC market in view of the challenging environment. KfW Capital’s investment pipeline is well stocked until the end of the year.

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 had a strong start to the year: At the end of the first quarter, new commitments reached EUR 5.0 billion, exceeding the level of the prior-year period (01-03/2025: EUR 4.5 billion). The increase can be attributed to large individual transactions, which are inherent to the business model and are not spread evenly throughout the year.

All sector departments contributed to new business. Particularly noteworthy once again was the “Mobility” sector, which includes the rail traffic, maritime and aviation industries, and accounted for EUR 2.1 billion of total commitments (01-03/2025: EUR 1.7 billion). For example, financing was provided for electric trains in the Netherlands and Belgium, measures to decarbonise the maritime industry, investments in gas transmission and distribution networks in Germany, a wind and battery storage portfolio in Finland, and Canada’s largest battery storage project. KfW IPEX-Bank is supporting Germany and Europe as an economic centre as well as the transformation process worldwide with this financing.

5. Promotion of developing countries and emerging economies

KfW Development Bank

At EUR 1.8 billion, commitments at KfW Development Bank in the first quarter were more than three times above the prior-year volume (01-03/2025: EUR 509 million). This is mainly due to some large-volume commitments. EUR 133 million of the committed funds come from the federal budget, while around EUR 1.7 billion is being provided by KfW funds and mandate financing, which means that KfW has significantly increased its use of own funds.

In Indonesia, for example, two loans totalling EUR 661 million are making a significant contribution to the development of this export market and are specifically designed to serve German economic interests. Whilst a policy-based loan for sustainable economic development is aimed, amongst other things, at the conclusion of the free trade agreement with the EU, a further loan to support Indonesia’s energy transition is specifically targeted at private companies, particularly German ones, who wish to enter an energy market that has hitherto been largely monopolised, while being characterised by high volumes.

In view of Philippines’ growing geopolitical importance, KfW Development Bank has resumed its cooperation with the country, focusing on issues of global relevance. Through a loan of EUR 200 million, funded exclusively from KfW’s own resources, it has been promoting marine biodiversity and the protection of coastal ecosystems, together with the Asian Development Bank (ADB) and the French promotional bank AFD.

DEG

In the first quarter of 2026, DEG was able to commit around EUR 225 million from its own funds to support private companies in carrying out investments in emerging and developing countries (01-03/2025: EUR 129 million). The vast majority of these are long-term loans. Against a backdrop of persistently challenging global conditions, DEG will continue to focus its efforts in 2026 on advising and providing capital to companies and financial service providers in a way that facilitates sustainable, successful investments and transformation processes. A particular focus is on supporting German small and medium-sized enterprises.

6. Financial markets

In the first quarter of 2026, KfW raised funds amounting to EUR 35.4 billion in the international capital markets to fund its promotional business (01-03/2025: EUR 30.6 billion), including the largest bond ever issued in KfW’s history at EUR 10 billion – a Euro dual tranche with three-year and ten-year terms. This corresponds to around 46 percent of its planned funding volume of between EUR 75 to 80 billion for the whole of 2026. As usual, the first quarter is the busiest issuing quarter on the bond markets for major issuers such as KfW.

The share of funding in euro as the domestic currency amounted to around 54 percent in the first quarter, while the strategically important US dollar contributed close to 26 percent to the total volume. In addition, bonds were issued in seven other currencies in the first quarter, including British pounds (12 percent), Hong Kong dollars (4 percent) and Australian dollars (3 percent).

Proceeds from the issue of green bonds reached EUR 6.5 billion across currencies in the reporting period, representing 43 percent of the planned annual target of up to EUR 15 billion. Despite its clear focus on large-volume euro green bonds (EUR 5 billion), KfW issued five further green bond transactions in five different currencies (British pound, Australian dollar, Swedish krona, Chinese renminbi and Polish zloty) in the first quarter.

KfW will continue to drive forward the digitalisation of the capital market in 2026. In March, it was the main investor in an innovative bond issuance by DZ Bank: For the first time in Germany, the entire life cycle of a bond was mapped on a blockchain via a smart bond contract protocol. The ISIN was automatically assigned via the blockchain during the issue – a world first. The entire issuance process took only 40 minutes instead of the usual multi-day process. In February, the German fintech company SWIAT published a report on the European ‘Sovereign’ project, in which KfW also participated as an investor. In the project, the Greek central bank simulated the issuance and full life cycle of a digital government bond for the first time using the blockchain platform of SWIAT.

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 Reporting Portal | KfW