IFC Annual Report Financials 2024

ACCELERATING IMPACT: MOBILIZING INVESTMENT AT SCALE

Executive Summary

Overview The International Finance Corporation (IFC) is a leading global development institution focused on the private sector in developing countries. Founded in 1956, IFC is a member of the World Bank Group (WBG) and operates independently with its own Articles of Agreement, share capital, financial structure, and management.

Key Financial Performance

• Net Income: IFC reported a net income of $1.5 billion in FY24, compared to $672 million in FY23.
• Income Available for Designations: This increased to $1.6 billion in FY24 from $681 million in FY23. Starting in FY24, the Post-retirement Contribution Reserve Fund (PCRF) income is excluded from Income Available for Designations.
• Capital Utilization Ratio (CUR): The CUR remained steady at 60.5% in FY24, compared to 60.7% in FY23.

Financial Highlights

• Own Account Commitments: Total own account commitments were $31.654 billion in FY24, up from $27.704 billion in FY23.
• Core Mobilization: Core mobilization (including both Long-Term Finance (LTF) and Short-Term Finance (STF) commitments) reached $24.433 billion in FY24, compared to $16.025 billion in FY23.
• Disbursements: Disbursements increased to $19.147 billion in FY24 from $18.689 billion in FY23.

Investment Portfolio

• Cumulative Gross Commitments by Region: IFC's cumulative gross commitments by region are detailed in the report, highlighting significant investments across various regions.

Operational Highlights

• Capital Increase: In April 2018, IFC's Board of Governors approved a capital increase package, providing up to $5.5 billion in additional paid-in capital.
• Recent Initiatives: IFC has supported initiatives like granting public access to the Global Emerging Markets (GEMs) default and recovery rates, enhancing transparency and investor confidence. Additionally, IFC has expanded its investment in the Base of the Pyramid (BOP) platform, increasing its total investment to $1 billion, and signed a $3.5 billion credit insurance policy under the Managed Co-Lending Portfolio Program (MCPP).

Global Challenges and Strategic Initiatives

• Global Challenges: IFC has endorsed several global challenges, including climate change adaptation and mitigation, fragility and conflict, pandemic prevention and preparedness, energy access, food and nutrition security, water security, enabling digitalization, and protecting biodiversity and nature.
• Strategic Initiatives: To address these challenges, IFC has implemented various strategic initiatives, such as the launch of the WBG guarantee platform and the expansion of the BOP platform and MCPP.

Conclusion IFC continues to play a pivotal role in closing the financing gap and driving sustainable development in developing countries. By leveraging partnerships and innovative financial instruments, IFC aims to accelerate its impact and support the global community in achieving its development goals.