DEG presents successful results for the 2024 financial year

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW, looks back on a successful 2024 financial year despite the continued challenging environment. It provided a new record volume of EUR 2.5 billion from its own funds to private sector enterprises in developing and emerging market countries, advised the enterprises on their investments, made substantial contributions to development and achieved positive business performance once again. DEG's portfolio grew by around 13% to EUR 11.6 billion – another record high.

“DEG delivered impressive business development again in 2024 amid continued challenging conditions globally. The excellent new business volume shows that our support for private sector companies is in demand in developing and emerging market countries, as well as for German SMEs, where we also committed a record volume in 2024,” said DEG CEO Roland Siller.

Change in accounting policies

The main factors that determined the result in 2024 once again included net interest income and risk provisions. The 2024 annual financial statements were dominated by the transition to the accounting policies used by KfW Group and the resulting first-time application effects. For instance, general risk provisions in the credit business were calculated using the IFRS 9 three-stage model. The profit for the financial year 2024 pursuant to the German Commercial Code (Handelsgesetzbuch, HGB) amounted to EUR 3 million before taxes (2023: EUR 94 million) as a result of first-time application effects. Adjusted for these non-recurring effects, the annual profit before taxes is EUR 88 million. At EUR 105 million, DEG’s annual profit before taxes pursuant to IFRS exceeded the previous year’s satisfactory figure (2023: EUR 93 million).

The development impact of DEG-financed investments was substantial in 2024. DEG's existing customers employed around 2.9 million people in developing countries and generated EUR 202 billion in local income during the period under review. Co-financed renewable energy projects produced 25 TWh of green electricity for over 46 million people last year, thereby avoiding more than 13 million tonnes of CO2 emissions.

Climate action and transformation remain high on the agenda

In view of ongoing geopolitical tensions, DEG expects to continue to operate in a challenging environment in 2025. “We are confident that DEG will continue to play an important role in financing and advising enterprises in developing countries in line with their needs. This also applies to German companies,” said DEG CEO Roland Siller. He added that DEG aimed to focus its advisory services for customers even more on reducing emissions intensity and increasing resilience against climate risks. “Climate action remains at the top of our agenda, including financing renewable energy projects and providing green credit lines for local commercial banks.”