Financial results

The year 2011 was another challenging and successful one for FMO. However, the global financial crisis did have an impact on some of our clients.

Due to our deep knowledge of the markets in which we are active, and close contact with our clients, we were able to achieve overall successful results in 2011, even though the global financial crisis affected some of our markets and clients. Sound risk management, a sound capital base and a robust investment selection process also contributed to these results. New commitments increased by 27% to €1,306 million (2010: €1,026 million), well above our target of € 1,000 million. As a consequence, the committed portfolio grew by 11% to €5,874 million (2010: €5,292 million).

Of the new commitments, 45% (2010: 48%) were realized in low-income counties. The share of low-income countries in the committed portfolio was 44% (2010: 42%).

Close and intensive contact with our clients enabled us to support and serve them efficiently and proactively, and reduced the increased risks of the portfolio caused by the market conditions.

Net profit decreased to €93 million (2010: €126 million), mainly due to higher value adjustments on equity investments and lower results from associates. The disbursed loan portfolio growth also led to higher value adjustments on loans.

Total income (including results from associates) declined by 1%. Interest income and results from equity investments formed the largest part of total income. Net interest income increased by 11% to €147 million (2010: €133 million). The growth in the disbursed portfolio and increased credit spread were the main drivers of the higher interest income.

The global financial crisis negatively affected exit possibilities for equity investments.
The results from equity investments decreased by €6 million to €46 million.

Historical overview

2011

2010

2009

2008

2007

Committed portfolio (€xmln)

5,874

5,292

4,598

4,182

3,403

  • Share in Africa (%)

30

28

29

28

27

  • Share mezzanine and equity (%)

45

46

45

43

42

  • Local currency (%)

13

16

15

16

17

New contracts (€xmln)

1,306

1,026

911

1,314

1,315

Net profit (€xmln)

93

126

60

48

105

Result sale of equity (€xmln)

32

36

16

78

73

Government funds (incl. FOM) of committed portfolio (%)

15

15

18

17

21

Shareholders' equity (€xmln)

1,665

1,514

1,327

1,229

1,182