The second capital market conference on the energy transition also proved to be an impetus; not only saw it a significant increase in the number of participants, but also provided KfW and its partners with decisive incentives for future work. The Germany Fund, whose first building blocks were launched in December, also made significant progress. This new instrument marks a paradigm shift: away from sector-based, linear promotional structures towards capital market oriented financing of key fields of the future.
We will build on these successes to further strengthen the international competitiveness and innovative capacity of Germany.
KfW also posted an excellent year for business in 2025. The group’s new business volume reached EUR 98 billion; the core business alone accounted for EUR 96.9 billion – the second-highest figure in KfW’s history. Around two thirds of new business, i.e. EUR 62 billion, was used for loans to private households, companies and municipalities in Germany. KfW made a special contribution in the area of housing: more than 750,000 housing units were promoted – an impressive 68% increase compared to the previous year.
In the SME Bank business sector, new commitments almost doubled to a total of EUR 23.5 billion. Commitments to new businesses and investments, as well as to innovation and digitalisation saw particularly strong growth. KfW is also heavily involved in climate action and renewable energies.
Our subsidiary KfW Capital, which is active in the venture capital segment, committed financing amounting to around EUR 748 million. The decline compared to the previous year is mainly due to one-off commitments for two facilities made in 2024 on behalf of the Federal Government as part of the Future Fund. Adjusted for these one-off commitments, KfW Capital even recorded an increase of 13.5% for 2025. Since it was founded in 2018, KfW Capital has directly co-financed more than 150 venture capital funds, which means it has indirectly co-financed more than 2,900 start-ups.
Actively overcoming global challenges
KfW’s international activities are marked by its prominent role in supporting European and German companies on global markets, creating market access, securing resource-efficient supply chains and promoting stable partnerships. With a total business volume of over EUR 36 billion in its international business areas, KfW has achieved a new record figure, which underscores its global responsibility. KfW IPEX‑Bank continued its success story and expanded new business to EUR 24.2 billion, primarily through strong projects in the energy, mobility and infrastructure sectors. In this way, it supports the German and European export industries, which benefit from resilient supply relationships and innovative large-scale projects.
KfW Development Bank is firmly committed to promoting geostrategic infrastructure, more stable global supply chains and consistent climate and environmental action. At the same time, it does not leave its partner countries alone – especially in tense financing situations. With new commitments amounting to EUR 10 billion, two thirds of which are for climate projects, it emphasises its role in the global transformation and stresses the importance of European and German interests.
DEG focuses on promoting private investments in developing countries and emerging economies, significantly expanding relevance and impact, while consciously focusing on growth. In 2025, EUR 2.4 billion was provided for private investments, especially with regard to companies linked to Germany. A record level of mobilisation was also achieved through the engagement of international investors.
Boosting impact and driving sustainable transformation
With this international focus, KfW is helping to position Germany and Europe as strong, competitive and reliable players on the international markets and to secure market access for German companies. As a result, it is a partner in sustainable development and remains committed to its self-image as a bank committed to responsibility.
KfW drives innovation not only in its promotional programmes, but also within its own organisation. The use of digital technologies and, in particular, artificial intelligence is being strategically driven forward throughout the group. An interdisciplinary team develops future-proof applications that improve work processes and make customer experiences even more efficient. KfW sees the opportunities offered by digital innovation as an integral part of its ambition to become faster, more effective and more efficient.
Satisfying consolidated earnings
Despite a slight decline compared to the previous year, KfW Group achieved a good economic result of EUR 2.0 billion in financial year 2025, based on strong operational activities and a continued positive but declining valuation result. This enabled a high level of promotional expense of EUR 0.5 billion to be granted, which was slightly below the prior-year figure. Consolidated profit [after IFRS effects] amounted to EUR 1 billion, which is below the prior-year figure of EUR 1.4 billion, but in line with KfW’s long-term earnings ambition. Profit before IFRS effects was EUR 1.4 billion and thus once again reached the high level of the previous year. Overall, the earnings position proved to be satisfactory in a challenging environment.
Risk-bearing capacity remains at a very high level
At the end of 2025, the regulatory equity ratios remained at a very good level with a total capital ratio and a (common equity) tier 1 capital ratio of 27.7%, and thus significantly above the bank’s overall capital requirement. This means that KfW is well capitalised and has sufficient buffers to mitigate future potential risks and support current and future market initiatives even more strongly.
Compared to the previous year, the ratios fell by around 2.5 percentage points, which is due to the increase in the total risk amount following the implementation of the more capital-intensive CRR III in the first quarter of 2025 (31 December 2024: total capital ratio of 30.3%; tier 1 capital ratio of 30.2%).
Shaping the future together – living responsibility
In 2025, KfW once again proved that it creates added value at crucial points: for citizens, companies, municipalities and the international role of Germany. With innovative strength and a sense of responsibility, it is shaping the next steps towards a sustainable future. To lead Germany on a stable and sustainable growth path, KfW has set clear priorities: investing in people and municipalities, promoting the innovative capacity of companies, and actively shaping Germany’s role in the world. These areas are interlinked, as a resilient energy supply, affordable and climate-friendly housing, innovative business models, and a strong international presence are the foundations for the future success of our country.
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