Frankfurt. 2025 was a strong year for Rentenbank’s promotional business. New business involving special promotional loans climbed by 82.1%, from EUR 3.6 billion to EUR 6.6 billion. The “Agriculture” promotional line accounted for a substantial share of this figure, with loans amounting to EUR 1.9 billion approved. This represented an increase of around 33% compared with the previous year. The positive trend in livestock housing finance continued. Committed volumes rose to EUR 351.1 million (2024: EUR 291.6 million). The promotional programme for “Livestock housing conversion for greater animal welfare”, launched in 2024 under the “Focus on Future Fields” initiative, is an important building block in this context. An amount of approx. EUR 57 million was approved under this programme in the reporting year. In the “Agribusiness” promotional line, business increased to EUR 844.4 million (2024: EUR 344.7 million). Promotional business in the “Rural Development” promotional line increased to EUR 2.0 billion (2024: EUR 1.7 billion).
Following the exceptional year in 2024, the largest increase in new business involving special promotional loans was recorded in the “Renewable Energy” promotional line. In the reporting year, an amount of EUR 1.8 billion (2024: EUR 76.1 million) was refinanced for investments in renewable energies. The lower EU reference rate helped drive business growth once again.
“2025 was a year of strength and new beginnings for Rentenbank. Despite a challenging environment, we significantly expanded our promotional business and helped drive important future-oriented investments in agriculture. The strong demand for our promotional programmes shows just how important reliable financing and targeted support are for the sector’s competitiveness and resilience,” says Nikola Steinbock, Spokesperson of Rentenbank’s Management Board.
First quarter of 2026: strong momentum in promotional business continues
Demand for promotional loans remained unabated in the first quarter of 2026. New business involving special promotional loans totalled EUR 2.4 billion in the first three months of the year. This represents an increase of 68.1% compared with the same period last year. The strongest growth was recorded in the “Renewable Energy” promotional line, at 210.2% to EUR 1.1 billion. New business in the “Agriculture” promotional line rose by 24.4% in the first quarter to EUR 558.5 million (previous year: EUR 449.1 million). During this period, against a backdrop of stable margins and declining refinancing costs, Rentenbank raised EUR 5.1 billion (previous year: EUR 4.3 billion) in medium- and long-term funding on the capital markets.
“Farm businesses continue to invest, even though conditions remain challenging. It is particularly encouraging to see strong investment momentum in renewable energy, especially in wind turbines. This shows that many businesses are prepared to invest in diversification and in strengthening their long-term viability. Despite these positive developments, overall sentiment across the sector remains strained. Our latest Agribusiness Barometer shows that the business climate in the agribusiness sector has deteriorated further, not least as a result of the conflict in Iran and the associated increase in agricultural input costs. This is likely to be a key reason why, across the sector as a whole, many businesses are focusing their investment primarily on maintaining existing assets. That is a warning signal, as it shows that many farmers are currently concentrating on safeguarding existing structures rather than investing specifically in innovation and the further development of their businesses. However, this is exactly when the sector’s clear willingness to change needs to be backed by targeted support. We need a strong, future-oriented agricultural sector to safeguard security of supply and make a success of Germany’s energy transition,” said Nikola Steinbock.
Successful launch of “grants from own funds” for carbon accounting
New products introduced in 2025 included new offerings aimed at reducing greenhouse gas emissions. The “Climate footprint grant” and the “Climate footprint interest bonus” both met with strong demand in 2025. These grants are financed from Rentenbank’s own funds. By year-end, 830 applications had been approved, with grant funding totalling EUR 0.8 million for the preparation of climate foodprints in agriculture, while loans totalling EUR 92.5 million had been extended with the additional interest rate bonus. Both schemes therefore make an important contribution to achieving climate, environmental and resource protection objectives in an economically viable way.
Successful continuation of cooperation with the federal government
Rentenbank continues to award grants on behalf of the federal government. Under the Nature-based Climate Action Programme (Aktionsprogramm Natürlicher Klimaschutz; ANK), Rentenbank approved 1,223 applications in the reporting year on behalf of the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (Bundesministerium für Umwelt, Klimaschutz, Naturschutz und nukleare Sicherheit; BMUKN), with a total volume of EUR 35.4 million for investments in machinery and equipment designed to strengthen natural soil functions. The programme was launched in 2024. In addition, the ANK Paludiculture programme was launched just a few days ago. Under this programme, Rentenbank supports the rewetting and management of peatland areas through grants.
Promoting innovation across the entire value chain
Rentenbank supports innovation from the initial idea through to market launch. On behalf of the Federal Ministry of Agriculture, Food and Regional Identity (Bundesministerium für Landwirtschaft, Ernährung und Heimat; BMLEH), Rentenbank provides subordinated loans and innovation vouchers to start-ups operating in agriculture-related fields. From 2021 to the end of the first quarter of 2026, a total of 32 start-ups had already received support in this way. In addition, Rentenbank invests in venture capital funds that finance start-ups. In the reporting year, these investments amounted to EUR 21.4 million (2024: EUR 48.5 million). These two funding instruments — subordinated loans and investments in venture capital funds — are now being complemented by a third: a new support scheme for the market launch of innovative drive systems in agriculture will be launched in May.
The Growth Alliance start-up programme, initiated jointly by Rentenbank, BMLEH and Frankfurt-based TechQuartier, once again attracted strong interest in 2025. Through its various modules, it supports concepts and business models from the initial idea through to the accelerator stage.
Modernisation and strategic realignment
Alongside its strong promotional business, Rentenbank continued its modernisation efforts in 2025. The backlog in IT investment was reduced further cleared and milestones in the IT roadmap were reached. Rentenbank also used 2025 to revise its business strategy. With its new strategy, it is adapting to current conditions and sharpening its offering so that it can continue to fulfil its promotional mandate effectively. In doing so, it is responding to the dramatically increased challenges facing agriculture, agribusiness and the food industry. At the same time, it remains firmly focused on expanding and diversifying domestic energy generation and on the continued development of rural regions.
Increased reserves
The high level of promotional activity was reflected in the operating result before loan loss provisions and valuation, which at EUR 86.6 million in 2025 was below the previous year’s level (2024: EUR 161.6 million). Net interest income declined to EUR 228.8 million (2024: EUR 287.5 million), primarily for this reason. To improve the way it measures its promotional impact, Rentenbank has introduced a new key performance indicator, promotional activity, which it will report from this year onwards. Promotional activity covers all measures through which Rentenbank supports its customers, such as the subsidisation of special promotional loans (known as interest shortfalls) or direct grants. Another factor was the planned increase in administrative expenses to EUR 146.2 million (2024: EUR 130.8 million). These higher administrative expenses are attributable, among other things, to the continued implementation of the IT roadmap and targeted investments in Rentenbank’s IT infrastructure. Implementing the full range of projects and initiatives aimed at further developing Rentenbank also required investment in expertise. Part of the planned increase in administrative expenses is therefore attributable to an average increase in headcount of 22 employees. In 2025, Rentenbank’s average headcount stood at 473 employees.
The operating result achieved continues to allow for an adequate increase in the contingency reserve and other reserves. A total of EUR 22.8 million was allocated to the fund for general banking risks pursuant to Section 340g of the German Commercial Code (Handelsgesetzbuch; HGB).
At 50.7% (2024: 41.8%), the cost-income ratio remains strong by comparison with other promotional banks.
Capital ratio and leverage ratio remain at high levels
The Common Equity Tier 1 Capital (CET 1) ratio declined to 32.6% as a result of higher capital requirements following the initial application of CRR III, compared to the previous year (2024: 38.3%). However, both ratios remain well above the regulatory minimum requirements applicable to Rentenbank. The leverage ratio improved to 11.5% (2024: 10.2%).
Euro remains the most important issuance currency
To refinance its promotional business through special promotional loans and grants to ultimate borrowers, as well as to refinance debt securities purchased from banks and local authorities, Rentenbank raised medium- and long-term funding totalling EUR 10.9 billion on the national and international capital markets in 2025 (2024: EUR 8.2 billion). The most important issuance currency was the euro, accounting for 49% (2024: 55%). The share of US dollar issuance declined to 29% (2024: 32%). This included the issuance of a five-year USD global bond with a volume of USD 1.5 billion. With demand exceeding USD 10 billion and a spread of 7 basis points over US Treasuries, this was the most successful bond issuance in Rentenbank’s history to date. A total of 77% of the issuances were placed with international investors (2024: 79%). The largest investor groups in Rentenbank’s total medium- and long-term issuance volume continued to be commercial banks, at 49% (2024: 55%), and central banks and other official institutions, at 31% (2024: 35%).
Commenting on the 2025 results, Chief Financial Officer Dr Marc Kaninke said: “Like the sector as a whole, we too must ensure that we are well positioned for the future. In 2025, we made major progress in replacing our core banking system and have already implemented three quarters of our IT roadmap — a joint effort that has moved us forward both organisationally and technologically. By investing in modern IT and in talented people, we are strengthening our resilience and are well placed to meet growing IT security requirements as well as our customers’ needs. Our stable business figures and solid operating result show that we are acting from a position of strength, continuously expanding our promotional portfolio and reliably fulfilling our promotional mandate. At a time when food security is once again coming into focus, this is more important than ever,” Chief Financial Officer Dr Marc Kaninke said in summary of the 2025 results.
Key figures 2025
Key figures 2025 (PDF)
Annual report 2025
Background:
Landwirtschaftliche Rentenbank is Germany’s development agency for agribusiness and rural areas. Its promotional mandate covers not only agriculture and forestry, but also the entire food value chain, the increased use of energy from renewable sources, and the promotion of bio-economy solutions. Rentenbank attaches particular importance to the promotion of innovation, including research and development in universities, the early-stage financing of agriculture-related start-ups, and the market introduction and practical use of new technologies and products. Rentenbank’s promotional instruments are grants, subordinated loans and special promotional loans. The special promotional loans are granted via the lending banks of the ultimate borrowers on a competitively neutral basis. Rentenbank provides funding to banks, savings banks, and local authorities operating in rural areas. The Bank is a federal institution under public law whose capital stock was formed by contributions from the German agriculture and forestry sectors. It is subject to the German Banking Act (KWG) and is regulated by the Federal Financial Supervisory Authority (BaFin) and the Bundesbank. As one of the few triple-A rated institutions in Germany, Rentenbank raises funds in the capital markets.
This press release contains certain forward-looking statements that are based on current expectations, estimates, assumptions and projections of the Management Board and on the information currently available to it. These statements include, in particular, statements about our plans, strategies and prospects. Such forward-looking statements are identified by words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’ and similar expressions. These statements are not to be understood as guarantees of future performance; instead, they are dependent on factors that involve risks and uncertainties and are based on assumptions that may prove to be incorrect. Except where required by law, we assume no obligation to update forward-looking statements after the publication of the present press release.
