KfW funding volume increases significantly

KfW significantly expanded its promotional volume in the first half of 2025. In total, the promotional bank committed financing amounting to EUR 39.4 billion - an increase of EUR 4.7 billion compared to the previous year. Despite geopolitical uncertainties and economic challenges, KfW recorded a stable operating result and continues to provide impetus for climate protection, digitalization and innovation.

Strong growth in SME financing

Demand in the SME financing segment grew particularly strongly. Here, new commitments rose from EUR 5.7 billion in the previous year to EUR 10.2 billion. There was above-average demand for programs for climate, environment and innovation, which more than doubled to 6.9 billion euros. This was partly due to more attractive conditions in the Renewable Energies - Standard program, the volume of which increased from 5 million euros to 3.6 billion euros.

The significant increase in demand from SMEs for KfW loans for climate, environmental and innovation projects is an encouraging sign.

Stefan Wintels, Chief Executive Officer of KfW

Demand for innovation loans, for example from the ERP digitalization and innovation loan, also rose sharply. Thanks to additional promotional grants, over EUR 1.5 billion was committed (previous year: EUR 0.6 billion).

Heating and building promotion drives volume with private customers

KfW promotion also remains strong with private customers. The total volume grew to EUR 11.0 billion, with the focus remaining on energy-efficient construction and renovation. Federal promotion for efficient buildings, including heating promotion, recorded a strong increase to EUR 5.3 billion (previous year: EUR 3.2 billion).

Group result below previous year

KfW's consolidated net income amounted to EUR 289 million in the first half of 2025 (previous year: EUR 932 million). The decline is due to valuation losses, currency effects and higher provisions, among other things. In operational terms, KfW remained stable at EUR 969 million and was able to maintain its promotional activities. This was primarily due to increased promotional expenditure of EUR 246 million, which was used directly to support companies, start-ups and energy projects.

Attractive funding conditions for innovation, digitalization & energy

This development is a positive signal for start-ups:

• Access to low-interest loans for climate-friendly or digital business models
• More funds for investments, including through new funding instruments such as the ERP grant
• High demand = stable programs: especially for start-ups with a focus on sustainability

KfW Capital: fewer commitments, new initiatives launched

In the first half of 2025, KfW Capital's commitments amounted to EUR 146 million, significantly below the previous year's figure of EUR 679 million. The decline is mainly due to a one-off major commitment of EUR 500 million to the HTGF Opportunity Fund in the previous year. In the current reporting period, the first investments under the newly launched Impact Facility of the Future Fund were realized, among other things. In addition, the investment pipeline for the year as a whole was well filled, and KfW Capital remains an important player in the European venture capital ecosystem as investment advisor to the German Growth Fund.