Financial Report 2018
Total Page:16
File Type:pdf, Size:1020Kb
Financial Report 2018 Financial Report 2018 of NRW.BANK Contents 2 The Promotional Business of NRW.BANK 8 Report on Public Corporate Governance 20 Declaration of Conformity 21 Report of the Supervisory Board 24 Management Report 66 Balance Sheet 70 Income Statement 72 Notes 112 Cash Flow Statement 114 Statement of Changes in Equity 115 Reproduction of the Auditor’s Report 120 Responsibility Statement 121 Members of the Advisory Board for Housing Promotion 123 Members of the Advisory Board 126 Members of the Parliamentary Advisory Board 128 Organisation Chart 130 NRW.BANK at a Glance This is an unofficial translation of the Finanzbericht 2018 (German Financial Report 2018) and is provided for convenience purposes only. In the event of any ambiguity, the German text will prevail. Financial Report 2018 1 The Promotional Business of NRW.BANK The Promotional Business of NRW.BANK 1 Overview NRW.BANK’s promotional offerings and their further As the promotional bank and main promotional plat- development are driven by the promotional policy prin- form of North Rhine-Westphalia, NRW.BANK supports ciples adopted by the Board of Guarantors as well as by its owner and guarantor, the State of North-Rhine NRW.BANK’s promotional strategy, which is based Westphalia, in the fulfilment of its structural and eco- thereon. nomic policy tasks and in the efficient implementation of promotional programmes in North Rhine-Westphalia When developing and refining the contents of its with a view to minimising the impact of these activities promotional offerings, NRW.BANK regularly takes into on the state budget. To meet its promotional mission, account current challenges, e.g. the growing digitisation NRW.BANK draws on the full range of available promo- pressure faced by small and medium-sized enterprises. tional instruments and, in particular, contributes its Against this background, NRW.BANK launched a new lending expertise to the promotional process. promotional programme in September 2018, which adds a new, special service for the promotion of SME The chargeless facilitating of monetary and non-mone- digitisation projects to its existing range of solutions tary resources for the promotional business – referred for the promotion of innovation. This new NRW.BANK to as“Förderleistung”–isanintegralelementofthe financing solution effectively complements the digitisa- Bank’s promotional strategy. Interest waivers are a tion drive initiated by the State of North Rhine-West- centralcomponentofNRW.BANK’s“Förderleistung”. phalia. Clean air is another current challenge faced by On the one hand, it reduces a borrower’s interest cities and communities in North Rhine-Westphalia. To expenses by subsidising the interest rate for the final avoid diesel bans and improve air quality, NRW.BANK borrower, resulting in a below-market interest rate. On introduced a separate promotional sub-programme the other hand, NRW.BANK refrains from putting its with particularly favourable conditions for clean air equity capital in alternative investments yielding higher measures as part of its promotional programme for interest and, hence, income by using this capital to municipal investments and improved its existing pro- finance promotional loans granted at interest rates that motional offerings for electromobility. Moreover, a new are lower than the market rate. Other components of programme was added to our range of promotion pro- the“Förderleistung”includeriskassumptionsand grammes for homeowners’ associations in 2018. services such as advisory services for companies and customers.Especially,thesupplyofthe“Förderleis- In terms of contents, NRW.BANK’s promotional offer- tung”enablesNRW.BANKtomakeavailableattractive ings are divided into three different promotional fields promotional products to the respective target groups. denoting the target areas where the promotional activities are to take effect. These promotional fields NRW.BANK takes into account the existing offers by are“Economy”,Housing”and“Infrastructure/Munici- the Federal Institutes in the arrangement of its promo- palities”,andtheyaredividedintodifferentpromotional tion and supports the sizable use of Federal and EU themes. Each promotional product is assigned to a promotional funds in the State of North Rhine-West- specific promotional theme. The implementation of the phalia. The Bank serves as a conduit for the federal energy transition and the consideration of environmental promotional programmes of KfW Bankengruppe and protection relate to all three promotional fields of Landwirtschaftliche Rentenbank in its capacity as the NRW.BANK, albeit with different facets. central institution of the North Rhine-Westphalian savings banks. To refinance its promotional activities, NRW.BANK also uses funds made available to it by KfW Bankengruppe,LandwirtschaftlicheRentenbank, the European Investment Bank (EIB) as well as the Council of Europe Development Bank (CEB). 2 Financial Report 2018 Promotional architecture of NRW.BANK Promotional “Economy” “Housing” “Infrastructure/Municipalities” fields Promo tional New Construction/ SME/Foreign Trade Municipal Budgets themes Modernisation Start-ups/Innovation Infrastructure Energy Transition/ Energy Transition/ Energy Transition/ Environmental Protection Environmental Protection Environmental Protection In 2018, NRW.BANK recorded a volume of new commit- The table below shows a breakdown of the volume of ments of € 10.3 billion (2017: € 11.6 billion), of which new commitments by promotional fields: approx. 17% related to on-lending. Volume of new commitments Breakdown by promotional fields Dec. 31, 2018 Dec. 31, 2017 Change € millions € millions € millions Economy 3,592 3,667 −75 Housing 2,215 2,609 −394 Infrastructure/Municipalities 4,487 5,359 −872 Total 10,294 11,635 −1,341 2 Promotional field “Economy” spirit of optimism and dynamism. In doing so, the Bank NRW.BANK’s economic promotion activities comprise acts as a reliable partner to both businesses and the a widerangeoffinancinginstrumentssuchaslow- federal state. interest promotional loans, risk assumption as well as equity strengthening solutions. The various promotional Besides the general promotion of SMEs, a focus of solutions in this promotional field allow NRW.BANK to NRW.BANK’sactivitiesinthepromotionalfield“Economy” cover the entire lifecycle of a company. The Bank’s lies on the funding of start-up and innovation projects. economic promotion offerings are complemented by NRW.BANK thus acknowledges the fact that business advisory services. start-ups and innovations play a key role for the dynamic development of the North Rhine-Westphalian economy. NRW.BANK’s comprehensive range of economic pro- Moreover, investments in the protection of resources motion products and services helps to lay the basis for and in increased energy efficiency have become increas- a prospering economy, for creativity as well as for a ingly important for the corporate sector in recent years. Financial Report 2018 3 The Promotional Business of NRW.BANK The corresponding offerings have therefore been pooled advice on the use of public promotional and develop- in a separate promotional theme. ment funds in international projects. Promotional theme “SME/Foreign Trade” Promotional theme “Start-ups/Innovation” This promotional theme comprises the two anchor The highest-volume programme in this promotional products of NRW.BANK in the field of economic pro- theme offers interest-subsidised loans for start-up and motion, i.e. the NRW.BANK.Universalkredit and the consolidation financing. These loans are partly com- NRW.BANK.Mittelstandskredit. These two programmes binable with liability releases for the on-lending house offer small and medium-sized enterprises low-interest bank depending on the age of the company. In addition, loans for working capital requirements and investments micro start-ups with credit requirements of up to that can be used for a broad range of purposes. Subject € 25,000benefitfromaseparateNRW.BANKpro- to certain conditions, optional liability releases of 50% gramme, under which not only low interest rates are for the on-lending house banks may be applied for as offered but also no collateral is required. Applications an additional promotional component. The two anchor for promotionalfundsunderthisprogrammeare products account for the biggest portion of the volume channelled through the STARTERCENTERS in North of new commitments in this promotional theme. In Rhine-Westphalia. addition, NRW.BANK’s low-interest global loans offer banks and savings banks favourable refinancing loans The special needs of start-up projects in innovative to fund their own SME lending activity. NRW.BANK sectors are met by NRW.BANK through a fund-of-funds also joins syndicates extending loans for small and initiative for seed financings. To stimulate seed invest- mid-sized companies. ments, this initiative acts as a fund investor providing regional seed funds in North Rhine-Westphalia with Established SMEs are offered mezzanine capital or capital. For many start-ups it is difficult to raise follow- equity investments to strengthen their equity capital. up finance once a project loan expires. NRW.BANK In addition,NRW.BANKsupportstheprovisionofequity therefore offers newly established companies which for restructuring efforts via a separate fund by acting previously received funding under the state programme as a co-investor for capital investment companies “START-UP-Hochschul-AusgründungenNRW”the