DEG looks back at a successful 2017
Press Release from 2018-04-04 / DEG
Good result strengthens promotional potential
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW Group, looks back at a successful financial year 2017. It provided loans and equity capital totalling approx. EUR 1.6 billion for entrepreneurial investments in developing and emerging-market countries (2016: EUR 1.6 billion), and again generated a positive operating result.
“Qualified work and income are essential factors in helping people open up prospects for the future. In its business area, namely private sector promotion in developing countries, DEG is making significant contributions to this, given that most jobs are created in private sector companies,” said Bruno Wenn, Chair of DEG’s Management Board.
Equity ratio increased to 46.4 per cent
The operating result before risk provisions amounted to EUR 220.4 million (2016: EUR 259.2 million). On the cost side, net risk provision was made amounting to EUR 126.4 million, which is slightly less than in the previous year (EUR 136.8 million). Annual net income before taxes amounted to EUR 103.6 million (2016: EUR 111.3 million) and the balance sheet profit to EUR 93.8 million (EUR 99.8 million). As in previous years, it will be transferred to retained earnings to further strengthen DEG’s equity and hence its promotional potential. The equity ratio rose to 46.4 per cent (2016: 41.0 per cent). As a result, DEG continues to have an adequate risk-bearing capacity and a sound basis for its activities.
DEG customers employ around 1.5 million people
Also in view of development effectiveness, 2017 was a successful year. “We have established the Development Effectiveness Rating (DERa), a new system for recording and steering the development effects of our work, guided by the global Sustainable Development Goals (SDG),” said DEG Chairman Wenn. He continued that analysis of DEG’s portfolio showed that DEG contributed successfully to creating skilled jobs and thus prospects. For example, DEG’s portfolio customers employ around 1.5 million people and generate a local income of EUR 67 billion annually in developing countries, EUR 14 billion of which are wages and salaries.
DEG expects the market environment to remain dynamic in 2018, and that it will be much in demand in its role as a development finance institution. It will place additional emphasis on promoting innovative business models, for example in the field of FinTechs, and on promoting women entrepreneurs in developing countries in order to contribute to increased economic participation of women.