DEG announces successful results for 2022

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW, looks back on a successful 2022 financial year. It provided around EUR 1.6 billion from its own resources to enterprises in developing and emerging market countries (2021: EUR 1.5 billion), made substantial contributions to development and once again achieved a positive operating result. Overall, DEG financing enabled entrepreneurial investments amounting to EUR 9.5 billion in 2022 (2021: EUR 8.2 billion).

“Despite a very challenging global environment, DEG can look back on a successful year in terms of development impact and achieved a respectable financial result. This also demonstrates the remarkable resilience of our customers and strengthens our determination to go on effectively fulfilling our mandate. By focusing our business even more on impact and climate, we help to bring about sustainable economic transformation in our partner countries,” stresses DEG CEO Roland Siller.

Operating result improved, risk provisions increased

The operating result (operating result before risk provisions and valuation effects from currency) of EUR 248 million was up on the previous year (2021: EUR 213 million). Important earnings factors were the result from participating interests and net interest income. To take account of the overall increase in risks given the economically challenging environment, in 2022 DEG significantly expanded its net risk provisions on the expense side as a precautionary measure. Profit for the financial year before tax was EUR 22 million (2021: EUR 225 million).

DEG closed the 2022 financial year with a net profit of EUR 10 million. As in the past, the net profit will be appropriated to retained earnings so as to further strengthen DEG’s equity, thereby enabling DEG to fulfil its statutory purposes. With equity resources of around EUR 2.5 billion, DEG continues to have adequate risk-bearing capacity to fulfil its mandate.

The past financial year was also gratifying with regard to the development impact of projects financed by DEG. DEG’s portfolio customers employed around 3 million people in developing countries and generated EUR 209 billion in local income. DEG’s renewable energy portfolio currently amounts to around EUR 1 billion. Co-financed renewable energy projects produced 35 TWh of green electricity for over 33 million people last year, thereby avoiding more than 24 million tonnes of CO2 emissions.

Focus on Sustainable Development Goals

In view of ongoing geopolitical tensions, DEG expects to continue to operate in a challenging environment in 2023. “In turbulent times, development financiers like DEG are especially in demand. We are convinced that achieving the Sustainable Development Goals (SDGs) is more important than ever. This applies not only to the creation of skilled jobs, but also to other SDGs, such as building resilient infrastructure, promoting sustainable industrialisation and fostering innovation. We want to make decisive contributions to achieving these goals,” says DEG CEO Roland Siller.