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Focus Sector Financial Performance

FMO's primary goal is development impact. We take a sector approach, focusing on Financial Institutions, Energy and Agribusiness, Food & Water in order to guide our strategy and optimize development impact.

All focus sectors were profitable during 2012. The main contributor to net profit in 2012 was the Financial Institutions sector, following strong results from equity investments and a release on value adjustments. The positive financial performance of the Financial Institutions sector is partly driven by the one-off release of the group-specific provision. As this sector makes up about 50% of FMO’s on balance loan portfolio, with most loans having a shorter tenor compared to other sectors, a large part of the information backlog was connected to this sector.

The Energy sector showed the highest portfolio growth, while also improving the level of income. Performance by Diverse Sectors was influenced by two substantial additional specific value adjustments (together making up €22 million) on projects related to the former Housing sector. For further details please refer to the Segment Information included in the Annual Accounts.

FMO also executes Government funds and programs at the risk and expense of the State, and receives remuneration for services rendered. This remuneration is allocated to the sectors for financial performance segmentation.