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 Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

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

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: A “cosmic snake” reveals the structure of remote galaxies

The formation of stars in distant galaxies is still largely unexplored. For the first time, astron-omers at the University of Geneva have now been able to closely observe a star system six billion light-years away. In doing so, they are confirming earlier simulations made by the University of Zurich. One special effect is made possible by the multiple reflections of images that run through the cosmos like a snake.

Today, astronomers have a pretty accurate idea of how stars were formed in the recent cosmic past. But do these laws also apply to older galaxies? For around a...

Im Focus: Visual intelligence is not the same as IQ

Just because someone is smart and well-motivated doesn't mean he or she can learn the visual skills needed to excel at tasks like matching fingerprints, interpreting medical X-rays, keeping track of aircraft on radar displays or forensic face matching.

That is the implication of a new study which shows for the first time that there is a broad range of differences in people's visual ability and that these...

Im Focus: Novel Nano-CT device creates high-resolution 3D-X-rays of tiny velvet worm legs

Computer Tomography (CT) is a standard procedure in hospitals, but so far, the technology has not been suitable for imaging extremely small objects. In PNAS, a team from the Technical University of Munich (TUM) describes a Nano-CT device that creates three-dimensional x-ray images at resolutions up to 100 nanometers. The first test application: Together with colleagues from the University of Kassel and Helmholtz-Zentrum Geesthacht the researchers analyzed the locomotory system of a velvet worm.

During a CT analysis, the object under investigation is x-rayed and a detector measures the respective amount of radiation absorbed from various angles....

Im Focus: Researchers Develop Data Bus for Quantum Computer

The quantum world is fragile; error correction codes are needed to protect the information stored in a quantum object from the deteriorating effects of noise. Quantum physicists in Innsbruck have developed a protocol to pass quantum information between differently encoded building blocks of a future quantum computer, such as processors and memories. Scientists may use this protocol in the future to build a data bus for quantum computers. The researchers have published their work in the journal Nature Communications.

Future quantum computers will be able to solve problems where conventional computers fail today. We are still far away from any large-scale implementation,...

Im Focus: Wrinkles give heat a jolt in pillared graphene

Rice University researchers test 3-D carbon nanostructures' thermal transport abilities

Pillared graphene would transfer heat better if the theoretical material had a few asymmetric junctions that caused wrinkles, according to Rice University...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Ecology Across Borders: International conference brings together 1,500 ecologists

15.11.2017 | Event News

Road into laboratory: Users discuss biaxial fatigue-testing for car and truck wheel

15.11.2017 | Event News

#Berlin5GWeek: The right network for Industry 4.0

30.10.2017 | Event News

 
Latest News

Carefully crafted light pulses control neuron activity

20.11.2017 | Life Sciences

SYSTEMS INTEGRATION 2018 in Switzerland focuses on building blocks for industrial digitalization

20.11.2017 | Trade Fair News

Heavy nitrogen molecules reveal planetary-scale tug-of-war

20.11.2017 | Earth Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>