news - Strong growth portfolio and development impact FMO

New investments rose to EUR 1.3 billion in 2011 

• EUR 1.3 billion in new investments 
• EUR 5.9 billion total committed portfolio 
• EUR 93 million net profit 
• FMO introduced Agribusiness, food and water as new focus sector
• FMO remains positive about economic growth in developing countries

FMO (the Netherlands Development Finance Company) published its 2011 annual results today*. The total investment portfolio increased from EUR 5.3 billion in 2010 to EUR 5.9 billion in 2011. The quality of the portfolio remains strong. FMO made a net profit of EUR 93 million in 2011 (2010: 126 million). Although the net interest income rose again, the current market situation has resulted in less exits in equity and higher value adjustments, negatively affecting our net profit.

In the year under review, FMO made new investments worth EUR 1.3 billion, compared to EUR 1.0 billion in 2010. In 2011, 44% was invested in low-income countries, compared to 42% in 2010. 

Continuing positive outlook in developing countries

“These results show again that investing in developing countries continues to create opportunities for both local and international companies. Compared to the limited growth rates in the developed world, our results confirm the continuing shift of economic growth to the emerging and developing countries. We strongly believe that this is an irreversible trend”, according to Nanno Kleiterp, CEO of FMO. 

Sustainable growth fundamental

“The world’s population will grow from 7 billion people now to 9 billion people in 2050. If we want to live well, we have to take into account the scarce resources of our planet. We see a continuing mismanagement of global public goods, such as carbon emissions, water, and fisheries. This is fuelling climate change and posing a genuine threat to humanity. We must rethink the way we produce and consume.  

The fundamental importance of sustainable business and development will become main-stream in the years to come,” says Kleiterp. “That’s why we continuously look for new and innovative solutions for our clients such as our price incentive for sustainable businesses and the Tropical Asia Forest Fund.

In 2011, we started successful sustainability initiatives with the central banks and banking sector in Nigeria and Bangladesh. At the same time we increasingly see clients moving towards sustainable business processes. Our post-investment monitoring of the clients’ achievement of the expected development impact continues”.  

Agrisector added to the portfolio

In 2011, FMO introduced Agribusiness, food and water as a new focus sector. Food and food security is considered the major challenge for the world. FMO’s agribusiness portfolio is currently EUR 330 million. FMO’s focus will be on a controlled growth of the portfolio in the years to come.  

Outlook

“We expect a slower, but continuing growth of emerging and developing markets. Given the good state of the economy in many emerging and developing countries and our pipeline, our outlook remains cautiously positive for 2012,” according to Kleiterp.

Cooperation between business, governments, central banks and NGO’s in creating sustainable growth has increased. FMO sees many good and professionally managed businesses in developing countries that are successful. “Our focus on supporting our clients and catalyzing sustainable economic impact will continue. We will provide people in developing countries with access to financial services, energy and agribusiness. In addition, FMO will continue to be active in a number of other sectors, where it operates in cooperation with a worldwide network of partners with thorough expertise in that sector.” 

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The Annual Report 2011 will be published by FMO on http://annualreport.fmo.nl on March 29, 2012, 08.30 am CEST.   

About FMO

FMO (the Netherlands Development Finance Company) is the Dutch development bank. We support sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. We believe a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on four sectors that have high development impact: financial institutions, energy, housing, and agribusiness. With an investment portfolio of EUR 5.9 billion, FMO is one of the largest bilateral private sector development banks worldwide.

* FMO’s Annual Results 2011 shall be adopted in FMO’s General Shareholders’ Meeting on 9 May 2012

Press contact:

Paul Hartogsveld

Communications Officer a.i. (PR)

T: +31 70 314 9924

M: +31 6 39447288

E: p.hartogsveld@fmo.nl