news - Interim report 2024 published

NEWS

Interim report 2024 published

August 15, 2024

HY2024 at a glance 1

HY2024 At a glance Net profit

Today, FMO’s interim report 2024 has been published. The report reflects FMO’s work in the first six months of this year, showing our commitment to enabling entrepreneurs to increase inclusive and sustainable prosperity.

Financial and impact results

Our financial results for the period ending 30 June 2024 present a net profit of €134 million (HY23: €44 million). The appreciation of currencies (mainly USD) against the Euro positively influenced our financial performance, resulting in an upward adjustment of our private equity portfolio. While regular income1 is lower due to lower net interest income compared to the same period last year, we managed to contain costs, resulting in a lower cost-to-regular-income ratio2. The common equity tier 1 (CET-1) ratio at the end of the reporting period was 21.8%.

On 30 June our total committed portfolio was €13.5 billion (HY23: €13 billion). This included the growth of our Green-labelled total committed portfolio to €4.9 billion (HY23: €4.5 billion) and of our Reduced Inequalities-labelled total committed portfolio to €4.5 billion (HY23: €4.4 billion).3 While our investments in Financial Institutions have seen a strong first half year, our investments in Agribusiness, Food & Water and Energy will need to catch up in the second half of 2024. Pipeline build-up is looking promising for all sectors, which makes us cautiously optimistic for the achievement of our year-end ambitions.

Outlook

To realize our 2024 ambitions, we will need to ensure our pipeline converts into transactions in a timely manner. In the long term, we see key challenges: a scarcity of investment-ready companies, the availability of concessional funding and increasing regulatory requirements. While we applaud regulatory requirements in general, upcoming stringent EU rules on sustainable finance risk hampering or even harming our ability to enable sustainable economic growth in emerging markets rather than advancing it, and we urge the EU Platform on Sustainable Finance to seriously review the current set-up.4 Close collaboration with our peer DFIs, and accelerating market creation will help us to develop bankable business opportunities and ecosystems conducive to local sustainable economic growth, will benefit our ability to contribute to Global Gateway goals and will support Dutch trade opportunities. In addition, we will continue to focus on enhancing our efficiency. International developments will remain influential for our work. The current geopolitical tensions and conflicts, including the ongoing wars in Ukraine and Gaza, along with the numerous elections worldwide that have occurred or are due to take place, such as the presidential elections in the United States, have our full attention.

Please see the full report here.



1. Regular income includes net interest income, net fee and commission income, dividend income and remuneration from services rendered.
2. The cost-to-regular-income ratio is operating expenses divided by regular income.
3. FMO labels investments in its portfolio if they are expected to contribute to specific green activities and/or reduced inequalities (RI). Other investments in our portfolio, not labeled green or RI, are also expected to contribute to FMO’s impact objectives but are not covered by a defined label.
4. Press release: EU Sustainable Finance rules are essential, but revision needed for global impact | EDFI