Successful first half of 2018 for KfW promotion

Frankfurt am Main (ots) -

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- Total promotional business volume of EUR 36.1 billion
- Domestic promotion at a high level
- Strong demand for housing finance continues
- Commitments at KfW IPEX-Bank increase to EUR 6.7 billion
- Businesses show high level of interest in promotion for
innovation and digitalisation
- Consolidated profit of EUR 822 Million

KfW Group's promotional activity achieved a total volume of EUR
36.1 billion for the first half of 2018 (same period in the previous
year: EUR 36.5 billion). With a commitment volume of EUR 27.1
billion, domestic promotion is again at the previous year's high
level (EUR 27.6 billion). This was mainly driven by the strong demand
in housing finance. At EUR 8.2 billion, the business volume in KfW's
international financing is close to the previous year's figure of EUR
8.3 billion. New commitments in KfW IPEX-Bank's business sector rose
to EUR 6.7 billion (EUR 5.7 billion), in line with expectations. At
EUR 1.2 billion, the volume of commitments at KfW Development Bank
came in lower in comparison to the previous year's figure (EUR 2.1
billion). However, the financing volume for 2018 as a whole is
expected to reach a level similar to the previous year. DEG committed
financing in the amount of EUR 0.4 billion (EUR 0.5 billion).

"The strong economic situation in Germany has resulted in a
successful first half of the year for KfW's promotional business.
There has been a great deal of demand for our energy efficiency
programmes for SMEs and private costumers, confirming the importance
of our work in the field of the environment and sustainability. We
are also pleased with the high level of interest that businesses have
been showing in our enhanced promotional offers for innovation and
digitalisation," says Dr Günther Bräunig, Chief Executive Officer of
KfW Group.

At EUR 822 billion, the earnings position came in slightly above
the previous year's level (EUR 801 million), benefiting in particular
from a good valuation result.

"All things considered, this is a very pleasing result. At the
mid-point in the year, earnings have developed better than we
expected. The fall in operating profit is primarily a result of lower
margins and the ongoing effects of the low-interest phase. However,
this is more than balanced out by the extraordinarily positive
development of our valuation result, which incorporates figures such
as risk provisions, currency effects, equity investments and the
valuation of derivatives," says Dr Günther Bräunig.