Successful financial year: KfW IPEX-Bank presents 2016 financial statements
Main (ots)
- EUR 16.1 billion new commitment volume
- EUR 484 million contribution to KfW's consolidated earnings
reaffirms status as source of earnings for the Group
- KfW IPEX-Bank GmbH, as a legally independent and separate
reporting entity, records pre-tax profit from operating
activities of EUR 108 million
- 2017 outlook: focus on syndicate financing, selectively adding
to product portfolio, maintaining appropriate risk/return ratioKfW IPEX-Bank, a wholly-owned subsidiary of KfW which is responsible for the Group's Export and Project Finance business sector, today presented its figures for the past financial year in Frankfurt am Main. In 2016, the specialist bank provided its international customers with new loans totalling EUR 16.1 billion. The commitment volume in its original lending business stood at EUR 14.4 billion (2015: EUR 17.4 billion). In addition, there were new commitments of around EUR 1.7 billion (2015: EUR 2.2 billion) for bank refinancing under the CIRR ship financing scheme, an agency business managed on behalf of the German Federal Government.
Following the exceptional year that was 2015, when an accumulation of extraordinary transactions and market developments led to a particularly high new business volume, the new commitment volume stabilised at a normal level as seen in previous years. 'The bank consistently prioritised business quality in the reporting year, thereby creating a balanced risk/return ratio,' stated Klaus R. Michalak, CEO of KfW IPEX-Bank. 'We successfully helped German and European companies to compete in a challenging market environment by providing tailor-made financing, and in doing so made a contribution to securing German and European economic strength, employment and growth.'
With a contribution of EUR 484 million to KfW's consolidated earnings, KfW IPEX-Bank reaffirmed its status as one of KfW Group's main sources of earnings. The business sector once again played an active role in securing KfW's long-term promotional capacity.
The operating result of the Export and Project Finance business sector, for which KfW IPEX-Bank is responsible, was EUR 645 million, down slightly on the previous year. It mainly comprised net interest income and net commission income, less administrative expense, which rose slightly in the reporting year. The level of risk provisions was assessed conservatively in the reporting year in order to cover all recognisable risks adequately, meaning that the overall result from ordinary business activities stood at EUR 499 million.
KfW IPEX-Bank GmbH is a legally independent and separate reporting entity which performs all E&P market transactions. The bank reported a solid pre-tax profit from operating activities of EUR 108 million. The volume of lending in the Export and Project Finance business sector as of 31 December 2016 was EUR 69.4 billion (year-end 2015: EUR 69.4 billion).
2017 outlook: KfW IPEX-Bank aims to reinforce its position as a dependable specialist financier and stable partner to key industries that are vital to the German and European economies. The bank is therefore maintaining its sales and marketing activities at a high level across all sector departments and regions. 'We will continue to focus on syndicate financing and provide the debt capital required for large projects in collaboration with other market participants - both German and international banks, as well as institutional investors and supranational development institutions,' stated Michalak.
By selectively adding to its product portfolio and moderately expanding its network of foreign representative offices, KfW IPEX-Bank aims to build on existing customer relationships and tap into new customer groups for financings in the business sector. The bank's strategic focus is also designed to generate a steady share of new business that contributes to environmental and climate protection. Based on growing competition and a portfolio management strategy geared towards quality, KfW IPEX-Bank's target for new commitments in the 2017 financial year is EUR 15.9 billion.
KfW IPEX-Bank's Annual Report 2016, including the 2016 Corporate Governance Report, which KfW IPEX-Bank has voluntarily undertaken to publish as part of KfW Group, is available to download on the Internet at http://www.kfw-ipex-bank.de.
**The full press release including an overview table of the key financial figures can be found under: https://www.kfw-ipex-bank.de/International-financing/KfW-IPEX-Bank/
About KfW IPEX-Bank GmbH
Within KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW's promotional mission. It is represented in the most important economic and financial centres across the globe.
Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: Thomas Krick, E-Mail: thomas.krick@kfw.de
Tel. 069 7431 8454, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de