First bank that steers on impact, footprint and return
• EUR 2.5 billion in new investments
• EUR 8 billion total committed portfolio
• EUR 124 million net profit
• Growth of green and inclusive investments
• Implementation of impact model
FMO (the Dutch Development Finance Company) published its 2014 annual results today. The total committed investment portfolio increased to EUR 8 billion (2013: EUR 6.6 billion). The quality of the portfolio remains stable. A net profit of EUR 124 million (2013: EUR 133 million) will enable further green and inclusive investments and increase jobs supported and created in developing countries.
Main achievements in 2014
FMO achieved record new commitments of more than EUR 2.5 billion (2013: EUR 2.3 billion) , of which EUR 879 million was mobilized through third parties, while maintaining a satisfactory level of profitability. Highlights of 2014 included obtaining a full banking license and becoming the first bank that steers on impact, footprint and return.
Despite the challenging market environment, the level of profitability remained satisfactory. Total income in 2014 was EUR 260 million (2013: EUR 223 million) due to higher interest income and improved results from equity investments. However, the increase was largely offset by negative results from the valuation of non-realized upward potential in our client portfolio. The percentage of non-performing loans in the portfolio increased from 5,8% to 6,8% as a result of newly provisioned loans.
On our way to becoming the leading impact investor
FMO’s CEO Nanno Kleiterp: “Our strategy is all about enabling clients whose business strategies contribute to a sustainable world in 2050, when the world’s population is expected to reach nine billion. Not only were we successful in promoting investments by other financiers in our clients, but we also increased our green investments and achieved our 20% green target.
Last year, we translated our strategy of doubling our development impact and halving our ecological footprint into clear and specific targets: doubling jobs created through the financing we provide and doubling avoided greenhouse gas emissions. Between 2012 and 2020 we aim to contribute to the support and creation of almost 7 million jobs in emerging countries.
Climate change is a worrying global trend, which the world’s poorest are the least equipped to deal with. Sustainable development in emerging economies is therefore vital and we feel we have an important role to play as a development bank. FMO is now the first bank that steers on three measurable targets, higher impact, less footprint and reasonable return.
I am pleased that the Dutch development agenda continues to shift from aid to trade. One consequence of that is an increased political focus on private sector development that drives us to be transparent and accountable for our development impact- which is challenging yet welcome. We intend to contribute to this agenda by promoting investments of Dutch companies in developing countries. We initiated efforts to this end in 2014, and intend to deliver new financing solutions for Dutch companies in 2015.”
Outlook
Kleiterp: “Uncertainties such as geopolitical tensions, the oil price drop and financial market volatility are just some of the challenges that could make 2015 as volatile and uncertain as 2014. Dollar strength could affect some developing markets as investors repatriate money to the US, and we could see devaluations in some developing economies, which would make it hard for some of our clients to repay hard currency loans.
I am confident that our motivated and driven employees will rise to the challenges in 2015. Working together with our clients, partners, investors, government counterparts and other stakeholders, we will continue to empower entrepreneurs to build a better world.”
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. For 45 years, FMO has been investing in the private sector in developing countries. We believe in a world in 2050 where nine billion people can live well and within the boundaries of the planet. In pursuit of this vision, our mission is to empower entrepreneurs to build a better world. We specialize in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion, FMO is one of the largest bilateral private sector development banks. www.fmo.nl
Press contact:
Paul Hartogsveld Senior Marketing & Communications
T: +31 70 314 9928
M: +31 6 11589127
Disclaimer This press release should be read in conjunction with the Annual Report and Annual Accounts 2014, which will be published on 23 March 2015 on http://annualreport.fmo.nl. All figures in this document are not audited and not reviewed.
