IFC Management’s Discussion and Analysis and Condensed Consolidated Financial Statements March 31, 2019 (Unaudited) (English)

IFC helps developing countries achieve sustainable growth by financing private sector investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. IFC’s principal investment products...  See More + IFC helps developing countries achieve sustainable growth by financing private sector investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. IFC’s principal investment products are loans and equity investments, with smaller debt security and guarantee portfolios. IFC also plays an active and direct role in mobilizing additional funding from other investors and lenders through a variety of means. Emerging equity markets improved in FY19 Q3, reversing a negative trend that began at the start of calendar year 2018; commodity prices, including oil, rose for the quarter; and IFC’s major investment currencies were generally flat against IFC’s reporting currency, the US dollar. IFC experienced a net loss in both FY19 Q1 and FY19 Q2 with a significant improvement in FY19 Q3. The primary driver of IFC’s net loss in FY19 YTD, and decline compared to the nine months ended March 31, 2018 (FY18 YTD), was the overall loss on equity investments from lower valuations and lower realized gains on sales. IFC also recorded higher debt security impairment losses due to the significant depreciation of a currency that was deemed other than temporary in FY19 Q1. However, IFC also recorded higher foreign currency transaction gains on non-trading activities related to economic hedges of the exposure to this currency, which substantially offset the impact of the debt security impairment losses. IFC also recorded higher income from liquid asset trading activities, higher loan and debt security income, higher net foreign currency gains on non-trading activities, and lower provisions for losses on loans and guarantees.  See Less -