Düsseldorf/Münster, August 27, 2024
- NRW.BANK promotional funding for owner-occupied homes significantly higher
- Economy: Promotional business continues to normalise after crisis years
- Stronger demand for promotional funds for municipal services of general interest
In the first six months of 2024, NRW.BANK extended promotional funds in the total amount of 4.2 billion euros. The volume of new commitments is thus almost at the same level as in the first half of 2023, when the Bank had committed 4.5 billion euros (-7%). Developments in the individual promotional fields differed quite substantially: While Housing is experiencing a boom, Economy has returned to a pre-Covid level. The trend already visible at the end of 2023 is thus continuing.
About the promotional fields:
Housing recorded noticeable growth in the first half of 2024, picking up by more than one third to almost 1.3 billion euros (H1 2023: € 932.5 million; +37%). This increase is mainly due to demand in two programmes: 187.9 million euros were committed under the NRW.BANK.Nachhaltig Wohnen programme, up from 2.6 million euros in the same period of the previous year. This is due to the fact that a very favourable interest rate was introduced for the programme to bridge the gap during the temporary suspension of federal funding. A total of 135.5 million euros was granted under the NRW.BANK.Wohneigentum programme in the first half of the year (H1 2023: € 9.4 million. This had several reasons: Already in 2023, the income limits had been raised, the interest rate reduced and new maturity schemes introduced. Moreover, 2024 saw the programme being launched on additional online platforms, which means that it can now be used by more mortgage brokers.
In the promotional field Economy, NRW.BANK supported companies and start-ups in North Rhine-Westphalia with promotional funds totalling 1.2 billion euros in the first six months of 2024. This represents a decline of 20 percent compared to the same period of the previous year (€ 1.5 billion) and shows that the normalisation to pre-Covid levels is continuing. Programmes to make companies in North Rhine-Westphalia fit for the future showed a positive trend. Growing demand was recorded for the NRW.BANK.Effizienzkredit, with new commitments totalling 71.1 million euros, an increase of 34 percent compared to the same period of the previous year (€ 53.1 million). Demand for the NRW.BANK.Digitalisierung und Innovation programme even rose by 96 percent (€ 73.7 million; H1 2023: 37.6 million).
In the promotional field Infrastructure/Municipalities, demand for new funding declined by a total of 17 percent to 1.7 billion euros in the first half of 2024 (H1 2023: € 2.1 billion). On the other hand, there was a strong increase in some services of general interest, with newly committed loans under the NRW.BANK.Moderne Schule programme totalling 106.0 million euros (H1 2023: € 30.7 million). Demand under the NRW.BANK.Flüchtlingsunterkünfte programme also remained high, with a total of 115.7 million euros granted in the past six months (H1 2023: € 73.8 million; +57%).
For more information, visit www.nrwbank.en
NRW.BANK - the promotional bank for North Rhine-Westphalia
NRW.BANK is the promotional bank of North Rhine-Westphalia (NRW). In close partnership with its owner, the State of North Rhine-Westphalia, the Bank helps to strengthen SMEs and start-ups, create affordable housing and improve public infrastructure. To fulfil its mandate, NRW.BANK offers people, enterprises and local authorities tailor-made financing solutions and advisory services. It cooperates with its financing partners, in particular all banks and savings banks, on a competition-neutral basis. NRW.BANK operates largely independently of the state budget. In order to accelerate the transformation processes, the promotional bank provides effective promotional impulses – for a sustainable, climate-neutral and digital North Rhine-Westphalia.