German development bank KfW posts lower profit in 2020

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BERLIN, March 25 (Xinhua) — Consolidated profit of German state-owned development bank KfW dropped to 525 million euros (about 620 million U.S. dollars) last year due to the coronavirus pandemic, after almost 1.37 billion euros in the previous year, the bank said Thursday.

Although KfW was able to “continue the positive development of operating results,” the negative effects of the coronavirus crisis reduced the consolidated profit, said Guenther Braeunig, chief executive officer (CEO) of KfW Group.

KfW’s promotional business “reached a historical high” in 2020 as the bank’s funding volume increased by 75 percent to 135.3 billion euros during the year.

The “main drivers” of the strong growth were measures to mitigate the economic impacts of the pandemic in Germany and abroad, which totaled 50.9 billion euros or 38 percent of the bank’s total business volume, KfW noted.

Last year, the German government launched an unprecedented stimulus package to mitigate the COVID-19 effects. KfW, on behalf of the government, played an important role in facilitating economic aid and support measures by providing immediate loans to companies for investments and operating resources.

In Germany, KfW said it granted around one million loans, grants and other financing worth 106.4 billion euros in 2020. Enditem

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