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Press Release from 2021-03-29 / KfW IPEX-Bank

KfW IPEX-Bank: Extensive support for export industry in financial year 2020 despite coronavirus

In spite of the challenges posed by the spread of COVID-19, overall KfW IPEX-Bank can look back on the 2020 financial year with satisfaction: New commitments for finance benefiting the German and European economies reached EUR 16.6 billion – below the record level of 2019 due to coronavirus, but still in line with the high average of previous years.

“The past year was challenging for all of us, both personally and professionally. For KfW IPEX-Bank, like others, 2020 was overshadowed by the coronavirus crisis and the challenges it presented,” explained Klaus R. Michalak, CEO of KfW IPEX-Bank. “Together with our customers, we developed individual solutions to overcome the challenges specific to their sector or business, but without losing sight of the fact that we assisted German and European export companies on global markets with tailored financing totalling EUR 16.6 billion with a view to supporting investments in the future and safeguarding German and European jobs in the long term.”

New commitments and volume of lending

Of these new commitments, EUR 15.9 billion (2019: EUR 18.6 billion) related to original lending business and EUR 0.7 billion (2019: EUR 3.5 billion) to funds for bank refinancing under the CIRR ship and ERP export financing programmes.

This good result was achieved thanks to a focus on future technologies, with increased demand for financing of infrastructure projects, particularly in the area of digital infrastructure. KfW IPEX-Bank supported these projects over the course of the year, with around EUR 800 million devoted to the expansion of fibre optics, broadband and mobile communications and the construction of sustainable data centres. The share of sustainable environmental protection and climate change mitigation projects across all sector departments was also significantly above the average of previous years, totalling EUR 2.9 billion.

On the other hand, KfW IPEX-Bank experienced a decline in demand in tourism and passenger-related sectors, with demand for financing of cruise ships and aircraft falling significantly. In contrast, rail transport projects remained largely unaffected.

The volume of lending of the Export and Project Finance business sector amounted to EUR 67.5 billion at year-end 2020 (previous year: EUR 69.1 billion).

Contribution to KfW's consolidated earnings

The challenges posed by the coronavirus pandemic are also reflected in the financial result of KfW's Export and Project Finance business sector, for which KfW IPEX-Bank is responsible: While it posted a stable operating result before valuation of EUR 540 million, pressures from coronavirus – particularly above-average loan loss provisions – reduced KfW IPEX-Bank's contribution to KfW's consolidated earnings to EUR 99 million, well below the average of previous years.

Nevertheless, even in a year of extraordinary challenges, KfW IPEX-Bank remained a source of earnings within KfW Group, and thus helped to ensure KfW's long-term promotional capacity.

The entire 2020 Annual Report of KfW IPEX-Bank including the 2020 Corporate Governance Report can be found here: https://www.kfw-ipex-bank.de/About-us/Annual-Report/


Dr. Axel Breitbach

Dr Axel Breitbach


+49 69 74 31 29 61


+49 069 74 31 94 09