DEG successfully concludes financial year 2013

• Record volume of new commitments: EUR 1.5 billion
• Operating result before risk provisions at previous year's high level

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW, has presented a successful balance sheet for the financial year 2013. It approved around EUR 1.5 billion in long-term financing for corporate investments (2012: EUR 1.3 billion), and again generated a positive result. The operating result risk provisions amounted to EUR 221 million (2012: EUR 218 million) which could largely be attributed to higher interest income and yields from equity capital.

In 2013, economic developments differed from region to region in developing countries. In emerging countries, in particular, economic momentum was relatively restrained. In view of depreciating local currencies and a weak US dollar, DEG made net risk provisions totalling EUR 104 million (2012: EUR 63 million). The net retained profits amounted to EUR 82 million in 2013 (2012: EUR 132 million).

"We purposely are engaged in investments aimed at long-term rather than short-term success – and that in countries which entail higher risks," explained Bruno Wenn, Chairman of the DEG Management Board. "Thanks to our many years of experience in these countries, we are well equipped to assess these risks and also factor in any surprising local developments in an appropriate manner. Companies can rely on us to stand by them when things get tough."

As in previous years, the net retained profits will be contributed to the retained earnings with a view to strengthening DEG's equity and its promotional potential. An equity ratio of 40.5 per cent ensures an adequate risk-bearing capacity and a solid basis enabling a further development of its financing business in the years ahead.

Around one million jobs will be secured or created by investments co-financed by DEG in 2013. The co-financed companies will generate EUR 3 billion in net foreign currency earnings per year and contribute towards annual state revenue totalling EUR 812 million. Furthermore, the companies will produce 1,200 GWh of green electricity per annum which can supply around 650,000 people.

DEG aims to achieve new business commitments at a similar level in 2014. Commitments in Africa and other future markets are to be expanded, as well as the proportion of funding for climate and environmental protection projects.

"As a private-sector financier DEG targets the sustainable success of its customers – an important key to its promotional goals. In 2014, we further aim to cater for our customers' needs in a targeted way, providing them with long-term financing solutions," emphasised Wenn.