FMS Wertmanagement 2025: Stable results as transformation continues
Munich, 25 March 2026
Portfolio reduced by EUR 4.2 billion, with further reduction in complexity and risks
Profit from ordinary activities of EUR 43 million for the year
FMS-WM’s operating model is being further developed
FMS Wertmanagement (FMS-WM), the German federal government’s winding-up institution, has achieved an annual result on a par with the previous year (EUR 41 million), with a result from ordinary activities of
EUR 43 million.
Net interest income of EUR 420 million made a significant contribution to the positive result, although this was
EUR 134 million lower than in the previous year (EUR 554 million). The decline is primarily attributable to the lower average short-term interest rates in the currencies relevant to FMS-WM in the 2025 financial year compared with the previous year, as well as to the reduction in the portfolio.
The portfolio was reduced by EUR 4.2 billion in the 2025 financial year (including portfolio-reducing foreign exchange effects amounting to EUR 1.9 billion). The nominal volume of the portfolio stood at EUR 36.6 billion as at 31 December 2025 (31 December 2024: EUR 40.8 billion). This corresponds to a reduction of approximately 80 per cent since the portfolio was acquired.
The balance of risk provisions and net income from investments in the amount of EUR -303 million (previous year: EUR -413 million) was impacted by reduction and valuation measures. The risk provisions was significantly influenced by an allocation of EUR 600 million to the fund for general banking risks in accordance with Section 340g of the German Commercial Code (HGB).
General and administrative expenses in fiscal year 2025 amounted to EUR 97 million and thus remain well below income from ongoing operations. Adjusted for one-off effects relating to the adaptation of the operating model amounting to EUR 12 million (previous year: EUR 6 million), primarily for the implementation of the new
IT infrastructure, administrative expenses were further reduced compared with the previous year.
Carola Falkner, the Executive Board member in charge of Treasury and Asset Management, comments on the successful closure of the FMS-WM branch in Rome at the end of June 2025:
“Following intensive preparations, we closed our Rome branch on 30 June 2025. The prior reduction of assets held there has led to a significant reduction in complexity, administrative expenses and risks within the portfolio. In doing so, we are consistently fulfilling the wind-down mandate from FMS-WM and have reached another milestone in the timeframe we set ourselves.”
Following the successful implementation of the strategy to reduce complexity and risks in the portfolio, the operating model is currently being further developed to ensure that the now less complex and lower-risk portfolio continues to be managed to a high standard, with operational stability and efficiency. This includes the planned merger between FMS-WM and FMS Wertmanagement Service GmbH. Portfolio servicing is to be provided by FMS-WM as of 2027.
Commenting on the implementation status of FMS-WM’s future operating model, Spokesman of the Executive Board Christoph Müller explains:
“In fiscal year 2025, we further simplified and optimised the organisational and procedural structures of FMS-WM Group and adapted them to future requirements. We will continue along this path in 2026.
In parallel, we are consolidating and standardising the IT landscape. The new processes and systems are scheduled to go live in fiscal year 2027.”
Subject to geopolitical developments and provided that no unforeseen events trigger critical developments,
FMS-WM expects at least a breakeven result from ordinary activities for fiscal year 2026 as well.
FMS-WM was founded in 2010 with the aim of winding up the risk positions and operations that were transferred to the company from the Hypo Real Estate Group (HRE Group) effective 1 October 2010. The Financial Market Stabilisation Fund is obligated without limitation to compensate losses under Section 8a of the German Law Establishing a Financial Market and Economy Stabilisation Fund (Gesetz zur Errichtung eines Finanzmarkt- und Witschaftsstabilisierungsfonds - Stabilisierungsfondsgesetz) for losses incurred in winding up the portfolio.
If you have any questions, please do not hesitate to contact Frank Hessel, Press Spokesman, at +49 (0)89-9547627 647 or by email at