DEG presents positive results for the 2021 financial year

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH looks back on a successful 2021 financial year in terms of development impact and its economic situation, despite the ongoing COVID-19 pandemic. DEG’s portfolio customers employed around 2.8 million people in 2021, generating EUR 147 billion of local income. DEG achieved a very positive result in the past financial year, which will enable it to strengthen its equity basis and thus its ability to boost its promotional business. DEG's portfolio grew by around 8% to EUR 9.2 billion.

Successful year both financially and in terms of development impact

“Skilled employment and income are essential for opening up prospects for people. As a development finance institution, DEG plays an important role in this regard. 2021 was a markedly successful year for us, not only financially but also in terms of the impact of our investments. This will help us to continue to effectively fulfil our mandate going forward,” emphasises Roland Siller, CEO of the DEG Management Board.

In 2021, DEG facilitated entrepreneurial investments totalling EUR 8.2 billion in developing and emerging market countries (2020: EUR 7.7 billion). For this purpose it provided companies with funds of around EUR 1.5 billion from its own resources, while an additional EUR 507 million was mobilised from other investors.

Annual profit of EUR 225 million strengthens potential for promotional work

The operating result (operating result before risk provisions and valuation effects from currency) of EUR 213 million was up on the previous year (2020: EUR 200 million). Income from participating interests showed favourable development in 2021, and DEG also managed to reduce its risk provisions, which had increased considerably as a result of the pandemic. Overall, DEG achieved a profit before tax of EUR 225 million, following a loss before tax of EUR 179 million in the previous pandemic-hit year.

DEG closed the 2021 financial year with a net profit of EUR 216 million. As in previous years, the net profit is appropriated to retained earnings so as to further strengthen DEG's equity. With equity resources of around EUR 2.5 billion, DEG continues to have adequate risk-bearing capacity to fulfil its mandate.

Geopolitical situation expected to create challenges in 2022

Owing to the war in Ukraine and the resulting geopolitical tensions felt worldwide, DEG currently forecasts a more difficult operating environment again in 2022. “As a development finance institution, DEG operates in challenging and often volatile markets. We are monitoring developments in the current conflicts, which is affecting many countries and countless people, closely and with concern. The effects of the ongoing pandemic also continue to be felt. We are working to support our customers with appropriate instruments,” says Roland Siller.

In light of urgent global challenges such as climate change and sustainability requirements, DEG plans to further increase its focus on high-impact and climate-friendly investments in the future, as well as further expand its advisory services.