KfW Reporting Portal

Parallel to the war, further conflicts and crises culminated in 2022: climate-related disasters, drought, hunger, refugee movements, geopolitical tensions or the loss of biodiversity. For our generation, strains in this dimension are new to us, which creates enormous uncertainty and, at the same time, a great deal of pressure to act.

Nevertheless, we can also look to the future with a good amount of confidence. At KfW, our proximity to the market gives us the sense that the transition to a more climate-friendly, digital and resilient economy and society has begun. Based on our financing experience, we know that the German spirit of invention and entrepreneurialism is still alive. Those responsible at the top of companies in Germany know how to adapt and tackle new underlying conditions.

In 2022, KfW focused on strengthening these resources to drive the sustainable transformation of the economy and society. At the same time, KfW has made enormous efforts to cushion the immediate consequences of the war. The main task here was to ensure the energy supply.

An exceptional year in 2022: KfW promotional business volume at historic high of almost EUR 167 billion

In spite of the difficult economic environment in the year 2022 marked by the war, KfW continued the positive trajectory of previous years in consolidated profit. The volume of new business rose to a historical high of almost EUR 167 billion compared to 2021. The decisive factors for this were, among other things, the tasks assigned to us by the German Federal Government to ensure the energy supply.

The development of domestic promotional business was therefore shaped by measures to combat the crisis and reached a record volume of around EUR 136 billion.

At EUR 37.4 billion, a significant share of the domestic promotional business volume was accounted for by the Federal Funding for Efficient Buildings. In addition, the priority area of climate change and the environment recorded a significant increase, reaching a volume of EUR 19.5 billion.

KfW Capital’s commitments for start-ups and young, innovative technology companies in Germany rose significantly in 2022 by 150% to around EUR 1.3 billion. KfW Capital thus made an effective contribution to strengthening the ecosystem for venture capital in Germany.

KfW IPEX-Bank’s new business recovered significantly year-on-year with a volume of around EUR 18 billion. KfW’s subsidiary responsible for export and project finance thus made an important contribution to supporting German and European economies in a challenging market environment. In particular, it contributed to the transformation of the economy by financing fibre-optic projects as well as wind farms and photovoltaic systems.

Commitments in the promotion of developing countries and emerging economies reached a record level of close to EUR 12.6 billion, with KfW Development Bank accounting for around EUR 11 billion. DEG achieved a commitment volume of EUR 1.6 billion. These business sectors also directly supported Ukraine with infrastructure financing, liquidity and economic aid totalling EUR 831 million.

This makes KfW one of the largest financiers of climate and environmental protection projects in the world.

Measures to secure the energy supply in Germany

On behalf of the German Federal Government, KfW has been strongly committed to securing the energy supply. The transactions directly mandated by the Federal Government for this purpose totalled EUR 54.2 billion.

In addition to the lending transactions mandated by the German Federal Government to secure the energy supply, KfW acquired a 50% stake in the LNG terminal in Brunsbüttel on behalf of the German Federal Government. An important aspect of this commitment was that the terminal can be converted to use green energy sources and is therefore a pioneer on the path to a ­climate-neutral energy sector.

KfW Group consolidated earnings 2022: return to normality in a challenging year

Despite the difficult economic environment, KfW continued its trend from previous years of positive financial statements in consolidated profit. At EUR 1.37 billion, consolidated profit was at the average level of the last five years and is attributable in particular to a robust operating result and moderate net additions to risk provisions.

Risk-bearing capacity remains at a very high level

The regulatory equity ratios were still at a very good level at the end of 2022 with a total capital ratio of 25.2% and a (common equity) tier 1 capital ratio of 25.0% and significantly increased in year-on-year comparison in the course of the postponed recognition of income from the second half of 2021 and the first half of 2022 (31 December 2021: 23.9% each).

KfW on its way to becoming the digital ­transformation and promotional bank

KfW will celebrate its 75th anniversary in 2023. This anniversary comes in a period of deep uncertainty and upheaval. In the decades of its existence, KfW has repeatedly helped to overcome crises and emerge from them stronger. But its real mission is to shape the future. To be able to do this, KfW must transform itself. To this end, we have developed our own transformation agenda under the name of KfWplus and initiated a series of forward-looking projects. Some of the milestones defined have already been achieved.

The start of a sustainable and resilient future for Germany and Europe has begun. KfW will support this process to the best of its ability and consistently continue its path to becoming the digital transformation and promotional bank.