FMO, the Dutch entrepreneurial development bank, today released its 2024 Annual Report, demonstrating its commitment to enabling entrepreneurs to increase inclusive and sustainable prosperity. The report shows that FMO achieved strong financial and impact results amidst a global landscape dominated by geo-political tensions, high financing costs, and the increasing urgency to address climate change and inequality.
Before reflecting further on the year, we must acknowledge several concerning trends: rising geopolitical turmoil and weakening institutional foundations threaten global stability and solidarity, disproportionately affecting the most vulnerable people. Additionally, we are witnessing the public withdrawal of several major financial players from their climate and ESG commitments. In this context, FMO calls on the financial sector to remain resolute in advancing sustainable investment strategies. Financial institutions are pivotal in enabling local economic growth, reducing inequality, and driving meaningful climate action, key factors in global stability. Investing in access to (green) energy, food, and finance creates long-term value, something FMO has demonstrated for over 50 years through impactful and profitable investments. By working together, we can drive sustainable investments, create economic opportunities in our markets, support Dutch trade opportunities, and build a more resilient, inclusive future.
Our financial results for 2024 show a net profit of €297 million (2023: €65 million). Due to improving credit quality, we were able to release several provisions which have enhanced our profit. In addition, the appreciation of currencies (mainly USD) against the Euro positively influenced our financial performance, resulting in an upward adjustment of our Private Equity portfolio. We maintained a robust Common Equity Tier 1 (CET-1) ratio of 20.4% (2023: 22.0%). The increase in value of the private equity portfolio resulted in a reduction of the CET-1, which will be offset once the profit has been allocated to regulatory capital. Looking at the balance between our regular income—primarily generated from interest income, fees, and dividend payments—and our expenses, confirms that we must continue our cost-conscious approach in the coming years.
In 2024 we supported our customers with approximately €3.8 billion in total new investments (2023: €2.7 billion), a record number. We managed to directly mobilize more than 60 cents from other investors for each Euro we invested from our own balance sheet: €2.2 billion in new investments was made through FMO’s own balance sheet, €285 million through public funds, and €1.4 billion through direct mobilized funds (2023: €1.9 billion, €258 million, and €528 million respectively). At €15.5 billion (2023: €13.2 billion), our total committed portfolio grew significantly, driven by the appreciation of the US Dollar against the Euro and the increase in investments, particularly in mobilized investments, an important component in maximizing our impact. Our total committed portfolio resulted in an estimated 890 thousand jobs supported and 2,130ktCO2e financed avoided GHG emissions.
To steer our portfolio, we label investments that directly contribute to Reduced Inequalities (SDG 10) and Climate Action (SDG 13). With respect to Reduced Inequalities (RI), our overall RI-labelled total committed portfolio amounted to €6.1 billion, achieving €2.3 billion in RI-labelled total new investments in 2024 (2023: €1.1 billion), a strong increase despite challenging global circumstances. Contributing to climate action, our Green-labelled total committed portfolio amounted to €5.9 billion, this included Green-labelled total new investments of €1.5 billion (2023: €1.1 billion).
In a volatile global landscape, FMO faces three key long-term challenges: a scarcity of investment-ready companies, limited availability of concessional funding, and increasing regulatory requirements. In addition, exchange rate developments – 2025 already saw a decline of the Dollar against the Euro – may affect FMO’s financial performance in the years to come. However, as these challenging times also call for steadfast action, we remain firmly committed to FMO’s 2030 ambitions: €10 billion in Green investments, €10 billion in RI investments, and 10 meaningful innovations (10-10-10).
We will increase our efforts to stay on track to achieve these goals, with a particular focus on Reducing Inequalities-labeled investments, especially in least developed countries (LDCs). A crucial next step is our Market Creation initiative. Additionally, we will increase our investments in financial institutions in emerging markets, which have the local network and knowledge to play a key role in reducing inequalities within countries and supporting real climate action on the ground. Through these efforts, we will continue to create impact that fosters global sustainable prosperity and Dutch trade opportunities.
For more information, please see our Annual report 2024.
