Note from the Management Board

Welcome to FMO’s interim report 2026. The report reflects FMO’s work in the first six months of this year, showing our commitment to enabling entrepreneurs to increase inclusive and sustainable prosperity. The results for the period reflect strong growth in both portfolio and new investments, and resilient financial performance in an increasingly complex geopolitical and macroeconomic environment.

Impact results

During the first six months of 2026, FMO realized €1,740 million in new investments, more than doubling the €832 million achieved in the same period last year. This increase was broadly supported by strong origination with debt investments accounting for most new commitments and continued to reflect FMO’s strategic priorities. Climate-related investments were particularly strong; new investments labeled as Green reached €1,020 million (HY 2025: €252 million). Investments labeled as Reducing Inequalities also increased, reaching €930 million (HY 2025: €627 million). Note that some investments contribute to both objectives and are therefore included in both categories.

As of June 30, 2026, our total committed portfolio (TCP) amounted to €16.0 billion, a notable increase from €13.5 billion in the first half of 2025. FMO’s own balance sheet continued to be the largest contributor to the portfolio, rising by €2.0 billion to €11.1 billion (HY 2025: €9.1 billion). Measured in US dollars, our TCP amounted to $18.3 billion, compared with $15.8 billion in HY 2025. The strong growth of the TCP achieved during the first half of the year reinforces that we are on track to meet our strategic objectives.

Our Green-labeled total committed portfolio amounted to €6.9 billion (HY 2025: €5.1 billion) and our Reducing Inequalities-labeled total committed portfolio to €7.1 billion (HY 2025: €5.5 billion). In addition to growth on FMO’s own balance sheet, FMO continued to leverage partnerships and public funds to maximize development impact. The portfolio managed on behalf of public funds increased to €1.4 billion (HY 2025: €1.3 billion), while direct mobilized funds reached €3.5 billion (HY 2025: €2.9 billion).

Financial results

FMO reported a net profit of €76 million for the first six months of 2026, compared with a net loss of €90 million in the first half of 2025. This significant increase was primarily driven by positive effects resulting from the strengthening of the US dollars against the euro, as a considerable part of our equity portfolio is denominated in US dollar. We deliberately do not hedge our equity portfolio, to reduce the volatility of the capital ratio.

FMO’s underlying financial performance also strengthened, as reflected in our regular result¹, which excludes more volatile market-related impacts such as unrealized FX and fair value movements. Our regular result before tax increased to €71.7 million, compared with €68.1 million in the first half of 2025, reflecting:
• Increase of regular income from €158.3 million to €170.0 million, supported by growth in net interest income, which rose to €130.1 million (HY 2025: €122.5 million) reflecting higher outstanding loan volumes.
• Improvement of dividend income from equity investments, associates & joint ventures from €23.3 million to €26.7 million, highlighting continued ability of our equity portfolio to generate cash returns.

Operating expenses increased to €98.3 million compared to €90.1 million in the first half of 2025 following continued investments in our capacity and infrastructure, combined with inflation impacts. Moreover, in HY 2025 advisory costs were lower due to a one-off reimbursement.

Our cost-to-regular income ratio stood at 57.8 percent, compared to 57.0 percent as per HY 2025.

Despite continued geopolitical uncertainty, our debt portfolio quality remained resilient. The non-performing exposure ratio increased modestly to 5.8 percent from 5.5 percent at year-end 2025, while no broad-based deterioration is observed across sectors or geographies. Impairment charges amounted to €12.5 million (HY 2025: €32.2 million gain) mainly reflecting individual portfolio developments.

A significant share of the difference between regular result and reported net profit is driven by developments in the equity portfolio. Overall, the results from equity investments including net share results from associates & joint ventures resulted in a gain of €18.9 million (HY 2025: loss €177.9 million). Regular equity investments results amounted to a loss of €20.0 million, however, and were positively offset by FX gain of approximately €38.9 million.

Capital adequacy

As per June 30, 2026, FMO’s capital position remained above the minimum levels required by the Dutch Central Bank as well as the requirements of FMO’s own internal Risk Appetite Framework.

FMO’s Total Capital Ratio (TCR) decreased from 22.3 percent on December 31, 2025, to 21.8 percent on June 30, 2026, while the CET-1 ratio declined from 22.2 percent to 21.8 percent in the same period. The change is primarily driven by the negative impact of an increase in risk-weighted assets due to portfolio growth and FX effects, partly mitigated by the inclusion of the 2025 net profit in regulatory own funds.

Updates on Leadership and Compliance

On May 1, Idil Kural and Juan Jose Dada joined FMO’s Management Board, as Chief Finance & Operations Officer (CFOO) and Co-Chief Investment Officer (Co-CIO), respectively.

During the Annual General Meeting of shareholders on April 22, 2026, Annemarie Straathof was officially approved as a member of FMO’s Supervisory Board. She chairs the Audit & Risk Committee.

As of the same date, Chief Risk Officer Franca Vossen was reappointed for a second term on the Management Board.

Outlook

FMO’s Strategy 2030 – Pioneer–Develop–Scale – was launched in September 2022. 2026 marks the midpoint of the strategy period, creating a natural moment to reflect on our progress and assess whether we remain on track to deliver on our 10-10-10 ambitions: that is, realizing a €10 billion Green portfolio, a €10 billion Reducing Inequalities portfolio, and delivering 10 meaningful innovations by 2030.

While the Mid-Term Review is still ongoing, the findings to date indicate that we remain largely on track to deliver on our 2030 ambitions, suggesting that no major structural changes are required. At the same time, the context in which FMO operates has evolved substantially, which also affects the external outlook for our portfolio and remains uncertain. Geopolitical developments, the increasing emphasis on Dutch and European strategic interests, and the rapid advancement of artificial intelligence may warrant some targeted refinements to our course. We expect to finalize the Mid-Term review in the second half of 2026.

Responsibility statement

In accordance with Article 5:25d(2)(c) of the Dutch Financial Supervision Act (Wet op het Financieel Toezicht) we state that, to the best of our knowledge:

• The 2026 condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit of FMO and its consolidated undertakings;

• This 2026 Interim Report includes a fair overview of the important events that have occurred during the first six months of the financial year, and their impact on the 2026 condensed consolidated interim financial statements; and

• This 2026 Interim Report includes a description of the principal risks and uncertainties for the remaining six months of the financial year.

The Hague, August 13, 2026

Franca Vossen, Chief Risk Officer 
Idil Kural, Chief Finance & Operations Officer
Juan Jose Dada, Co-Chief Investment Officer
Huib-Jan de Ruijter, Co-Chief Investment Officer
Michael Jongeneel, Chief Executive Officer