Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

KfW IPEX-Bank doing well in its first year of independence

15.12.2008
Strong growth in new business / Financial market crisis weighs down on the result and requires higher risk provisioning

In 2008, its first year of legal independence, KfW IPEX-Bank GmbH achieved strong growth in its volume of new business, which totalled EUR 12.1 billion as at the end of November.

In addition, for the account of KfW it conducted export and project financing transactions in the amount of approx. EUR 4.1 billion (transactions conducted on a trust basis). In this way, KfW IPEX-Bank is making an important contribution to KfW's legal mandate to promote the German and European economy.

Heinrich Heims, Speaker of the Board of Managing Directors, reported on the business development and results of 2008 in Frankfurt on Monday. By the end of November, the bank had exceeded its goal for the year, with new commitments adding up to a good EUR 12 billion. In its business it aims to establish a balanced regional distribution of its portfolio. "To achieve this we seek to divide our portfolio into thirds representing Germany, the rest of Europe and regions outside Europe", announced Heims. "Outside Europe we focus primarily on markets and customers with which we have mostly had a good business relationship over many years."

In its domestic business KfW IPEX-Bank has committed over EUR 3.7 billion altogether, with finance for German shipping companies, manufacturing and commerce accounting for the largest share. In Europe the bank has committed new loans totalling EUR 5 billion. Its new commitment volume reached EUR 3.4 billion in the regions outside Europe.

During 2008 KfW IPEX-Bank also broadened its network of representative offices by adding Johannesburg, and an office in Abu Dhabi is currently under foundation. Another major step was the conversion of the London representative office into a branch which will specialise in financing infrastructure projects.

By the end of the third quarter on 30 September, the balance sheet total of KfW IPEX-Bank was EUR 52.8 billion. The earnings from operations - net income and commission income - were well above the level of previous years.

Nevertheless, the financial market crisis has left traces.
Earnings have been reduced by write-downs in the book value of financial assets which always have to be valued currently in strict observance of the lower of cost or market principle. "Since our last quarterly accounts we have had to book considerable valuation losses on our liquidity portfolio", said Heims. As the financial crisis and, hence, the fluctuations of market value in the financial markets are continuing, a forecast regarding the annual result is not yet given.

Given the cyclical downturn, monitoring the loan portfolio will be especially vital in the new year. This will also necessitate higher risk provisions. "We benefit from the fact that the loan portfolio of KfW IPEX-Bank is well diversified in risk terms thanks to our regional and sectoral market strategy. Besides, we hold valuable collateral as well as state guarantees in our export finance business and for direct investments by German companies abroad", added Heims.

"But we are also prepared for a rise in the number of critical loans that is sure to occur next year."

For 2009 Heims expects lower demand for financing as businesses put off or cancel investment projects, but also a reduced supply of credit as a result of the financial market crisis. For KfW IPEX-Bank he anticipates that new loan commitments will decline to around EUR 8-10 billion in 2009. This planning scenario takes account of the fundamentally new situation in the market. Although the business volume will not reach the current year's level, it will still reflect the original envisaged growth path. "First and foremost we want to show that we intend to stay consistently in line with the market", said Heims.

About KfW IPEX-Bank GmbH

Within KfW Bankengruppe KfW IPEX-Bank GmbH provides project and corporate financing as well as trade and export financing domestically and abroad. Worldwide it conducts all market activities of KfW Bankengruppe that are carried out on commercial terms. KfW IPEX-Bank GmbH has been operating as a legally independent subsidiary since 1 January 2008 and contributes significantly to the promotional mission of KfW Bankengruppe. It has approx. 490 employees (as of October 2008) and is represented in the key economic and financial centres across the globe.

Dela Strumpf | presseportal
Further information:
http://www.kfw-ipex-bank.de

More articles from Business and Finance:

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

nachricht Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Deep inside Galaxy M87

The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.

Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...

Im Focus: A Quantum Low Pass for Photons

Physicists in Garching observe novel quantum effect that limits the number of emitted photons.

The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...

Im Focus: Microprocessors based on a layer of just three atoms

Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.

Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...

Im Focus: Quantum-physical Model System

Computer-assisted methods aid Heidelberg physicists in reproducing experiment with ultracold atoms

Two researchers at Heidelberg University have developed a model system that enables a better understanding of the processes in a quantum-physical experiment...

Im Focus: Glacier bacteria’s contribution to carbon cycling

Glaciers might seem rather inhospitable environments. However, they are home to a diverse and vibrant microbial community. It’s becoming increasingly clear that they play a bigger role in the carbon cycle than previously thought.

A new study, now published in the journal Nature Geoscience, shows how microbial communities in melting glaciers contribute to the Earth’s carbon cycle, a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Expert meeting “Health Business Connect” will connect international medical technology companies

20.04.2017 | Event News

Wenn der Computer das Gehirn austrickst

18.04.2017 | Event News

7th International Conference on Crystalline Silicon Photovoltaics in Freiburg on April 3-5, 2017

03.04.2017 | Event News

 
Latest News

New quantum liquid crystals may play role in future of computers

21.04.2017 | Physics and Astronomy

A promising target for kidney fibrosis

21.04.2017 | Health and Medicine

Light rays from a supernova bent by the curvature of space-time around a galaxy

21.04.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>