Higher provision for failures
Funding bank KfW makes significantly less profit
More risk provision and the consequences of market turbulence press the result of the state KfW. However, the institute does not compromise on the funding – on the contrary.
Increasing profits at KfW in the first quarter: The state sponsoring bank has earned almost 75 percent less than a year earlier at 117 million euros. On the one hand, the KfW was forced to increase its pension for possible credit cases, and on the other hand, lost investments due to the weaker dollar.
Since profit maximization is not the goal of the federal and state governments, KfW boss Stefan Wintels nevertheless drew a positive interim balance: “The profitability of the KfW remains stable even in a very challenging environment.”
No cuts in the funding
There was even a slight increase in the funding commitments: the new business added up to 17.7 billion euros after 17.5 billion euros in the first quarter of 2024. The domestic business in particular increased. “Mittelstand uses KfW funding primarily to invest in innovations and climate protection,” said Wintels. “This is good news for Germany.”
The KfW provides medium -sized companies, house builders and students with low -interest loans in Germany. There are also export and project financing, the promotion of developing and emerging countries as well as the daughter KfW Capital for investments in start-ups. In the past year, the KfW banking group made a total of 112.8 billion euros in fresh funding.
dpa
Source: Stern
