LONDON (Reuters) - The European Bank for Reconstruction and Development (EBRD) posted a profit of 2.1 billion euro ($2.26 billion) for 2023, it said in a statement on Wednesday.
The gain, led by a 1 billion euro return on equity investments, offset a 1.1 billion euro loss in the prior year following Russia's invasion of Ukraine.
"With global challenges such as the climate crisis, macroeconomic uncertainties and geopolitical tensions growing more and more acute, the EBRD has the capacity to accelerate its support for clients and countries of operations," EBRD Chief Financial Officer Soha El-Turky said in a statement.
CONTEXT
The bank said in January that its 2023 investments reached a record 13.1 billion euros, with half of total financing related to the green economy.
In 2023, its board approved a 4 billion-euro capital increase that it said would enable the bank to double its Ukraine investments once reconstruction begins, and also began the process of expanding membership to Sub-Saharan countries including Ghana, Senegal and Ivory Coast.
WHY IT'S IMPORTANT
EBRD is one of the top lenders to Ukraine's private sector, and is also a key source of much-needed affordable finance for energy transition, infrastructure and other development projects from Poland to Turkey.
The financing it can provide is particularly crucial after the global interest rate-hiking cycle boosted private borrowing costs for most borrowers.
($1 = 0.9310 euro)