Financial and non-financial key performance indicators

Financial key performance indicators

The operating result before “loan loss provisions and valuation effects” (operating result) amounted to EUR 161.6 million, which was 18% below the level the previous-year operating result of EUR 197.3 million, but far above the expectations for 2024, particularly due to the lower-than-expected interest subsidy. Net interest income decreased by 7% and administrative expenses increased by 15% over the respective previous-year figures.

The aforementioned development of income and administrative expenses also affected the cost-income ratio, one of our key performance indicators. Moreover, the allocations to promotional contributions (EUR 33.8 million) and reversals of promotional grants from previous years (EUR 3.1 million) are excluded from the cost-income ratio. As expected, the cost-income ratio rose to 41.8% (35.6%). Taken as a whole, the cost-income ratio is still low.

The key performance indicator “volume of promotional loans”, which comprises the volume of new special promotional loans granted in a given year, amounted to EUR 3.6 billion in the past financial year (previous year: EUR 6.1 billion), which fell well short of our expectations.

Non-financial key performance indicators

With regard to the key performance indicator of “employees”, Rentenbank had a total of 459 (PY: 436) employees (excluding apprentices, interns, employees on parental leave, and members of the Management Board) at the end of 2024.

With regard to employee qualifications, the average number of continuing education days per employee came to 3.3 in 2024, which was somewhat more than in the previous year (3.1 days).

Rentenbank’s work benefits society in many ways. Through its Promotional Fund, it provided promotional funds totalling EUR 9.58 million in 2024, sponsoring agricultural, innovation, and general causes, supporting the forest project in the Buchenborn forest reserve, and donating to cultural institutions and social organisations in Frankfurt am Main.

ESG ratings

Rentenbank’s sustainability performance is regularly assessed by rating agencies specialising in sustainability. Rentenbank is rated by ISS ESG, MSCI ESG, and Sustainalytics. In the feedback process with ISS ESG, we improved our sustainability rating from D+ (36.3 points) to C- (48.6 points) in 2024. Our MSCI ESG Rating remained at the consistently high level of AA (on a scale from AAA to CCC). The Sustainalytics rating was unchanged at 9.1 in financial year 2024. Thus, the development of our ESG ratings was in line with our expectations.

Overview

• ISS ESG (as of 28/4/2024): C- (on a scale of A+ to D-).
• MSCI ESG Ratings (as of 11/7/2024): AA (on a scale of AAA to CCC)
• Sustainalytics (as of 23/5/2024): “Negligible Risk” with 9.1 out of 100 possible points, 0 being the best score.

We will make further efforts to continually improve our ESG ratings in the coming years.