FMO delivered another record year in new investments in 2025, committing €3.9 billion towards climate action and inclusive prosperity - strengthening global stability while supporting Dutch economic interests where possible. In a world marked by conflict, geopolitical turmoil, and currency volatility, FMO’s customers continued to demonstrate remarkable resilience. Many made steady progress and their perseverance enabled FMO to continue supporting inclusive and sustainable prosperity across its markets.
FMO reports a net profit of €48 million at year-end, a sharp contrast to the half-year net loss of €90 million. For context, 2024 closed with a net profit of €297 million. This volatility, both within and between years, is primarily driven by fluctuations in the euro/US dollar exchange rate. A significant share of our portfolio is denominated in US dollar while we report in euro. Therefore, currency movements can have a substantial impact on our net profit. In 2024, the change in the euro/US dollar exchange rate added more than €100 million to our net profit, whereas in 2025 it reduced our net profit by ~€180 million. Specifically our equity investment results showed a gain (2025: €112 million vs 2024: €61 million), however, FX result from equity investments resulted in a loss (2025: - €210 million vs 2024: €116 million). We deliberately do not hedge the currency risk for our equity investments, as a weaker dollar also results in a decline of the amount of risk FMO has to report (risk-weighted assets), which in turn supports stability of our capital ratios. This volatility does make us focus mostly on our regular result - from interest income, fees, and dividend payments, minus costs - as the key indicator for managing our operational performance. In 2025, our regular result (€122 million) ended above the level of 2024 (€110 million). At the same time, we experienced only limited cost growth, demonstrating continued cost discipline. This led to an improved cost-to-regular-income ratio compared to 2024 (61 percent in 2025, 63 percent in 2024). We also maintained a robust Common Equity Tier 1 (CET-1) ratio of 22.2 percent (2024: 20.4 percent).
Overall, while reported net profit shows a decline compared to 2024 due to FX effects, the regular result demonstrates stable underlying performance, supported by higher income and cost discipline.
Our Total Committed Portfolio (TCP) in US dollar shows the growth of our overall portfolio: $17.9 billion in 2025 against $16.1 billion in 2024. Reported in euro it stays close to last year’s portfolio: €15.3 billion in 2025 (FMO-A, our own balance sheet: €10.5 billion; public funds: €1.4 billion; mobilized: €3.4 billion), compared to €15.5 billion in 2024 (€10.5 billion, €1.6 billion and €3.4 billion respectively). Strong new investment activity contributed significantly to this result. New investments were financed through FMO’s own balance sheet (€2.7 billion), €229 million from public funds, and €1.0 billion in direct mobilized funds (2024: €2.2 billion, €285 million, and €1.4 billion respectively).
To steer our portfolio on impact, we label investments that contribute to Reduced Inequalities (SDG 10) and Climate Action (SDG 13). Both FMO’s Green and Reducing Inequality‑focused portfolios grew. Our overall RI-labeled total committed portfolio amounted to €6.7 billion (2024: €6.1 billion), achieving €2.2 billion in RI-labeled new investments in 2025 (2024: €2.3 billion). Our Green-labeled total committed portfolio reached €6.2 billion (2024: €5.9 billion), including Green-labeled new investments of €1.8 billion (2024: €1.5 billion).
A good example of a landmark Green investment is our contribution to the Ilute solar project in Zambia, underscoring how FMO’s financial leadership and sector expertise enabled one of Africa’s first project-financed renewable energy plants operating under a market-based offtake structure. The project strengthens Zambia’s energy resilience amid drought-related shortages, while offering a scalable model for private renewable energy investment across the region.
The impact of an increasingly volatile geopolitical environment – amplified by the escalating conflict in the Middle East – combined with high fluctuations in FX-rates, and the influence of AI, are reshaping the environment in which FMO operates. Against that backdrop, we are undertaking a midterm review of our 2030 Strategy: Pioneer–Develop–Scale. Not because our ambitions have changed, but because we consider it prudent, especially in light of the pace and scale of global transformation, to reflect and ensure our strategic direction remains both relevant and resilient.
While 2026 is bringing its share of challenges, it strongly calls for clarity of purpose and continued, steady commitment. We will stay focused on maximizing our impact, strengthening our partnerships, and supporting markets and customers to navigate uncertainty.
