IFC Annual Report Financials 2024

Table of Contents 56CONSOLIDATED FINANCIALSTATEMENTS AND INTERNALCONTROL REPORTS 2 57Management’s Report RegardingEffectiveness of Internal Control overFinancial Reporting59Independent Auditors’ Report on theEffectiveness of Internal Control overFinancialReporting60Independent Auditors’ Report62Consolidated Balance Sheets63Consolidated Statements ofOperations64Consolidated Statements ofComprehensive Income65Consolidated Statements ofChanges in Capital66Consolidated Statements ofCash Flows68Consolidated Statement ofCapital Stock and VotingPower70 Notes to Consolidated FinancialStatements MANAGEMENT’S DISCUSSIONAND ANALYSIS 3Selected Financial Data4Executive Summary7Overview9Client Services23Liquid Assets23Funding Resources26Risk Management40Critical Accounting Policies42Results of Operations50Governance and Control53Appendix 141 INVESTMENT PORTFOLIO Cumulative Gross Commitments byRegion MANAGEMENT’SDISCUSSIONAND ANALYSIS This Management’s Discussion and Analysis (MD&A) discusses the financial results of the International FinanceCorporation (IFC or the Corporation) for the fiscal year ended June 30, 2024 (FY24). The MD&A contains forward-looking statements which may be identified by such terms as “anticipates”, “believes”, “expects”, “intends”, “plans”,“aims” or words of similar meaning. Such statements involve a number of assumptions and estimates that are basedon current expectations, which are subject to risks and uncertainties beyond IFC’s control. Consequently, actualfuture results could differ materially from those currently anticipated. IFC undertakes no obligation to update anyforward-looking statements. Certain reclassifications of prior years’ information have been made to conform withthe current year’s presentation. Table 1: Selected Financial Data SECTION l.EXECUTIVE SUMMARY and SCI subscription and payment deadlines. As of June30, 2024, 135 countries have subscribed a total of $4.5billion, and payments of $3.7 billion have been receivedfrom 109 countries. Aligned with the capital increase, IFC continued to growits footprint in the poorest countries and fragile areas.New and ongoing challenges continue to influence theglobal outlook. The Board endorsed the following globalchallenges: climate change adaptation and mitigation;fragility and conflict; pandemic prevention and prepared-ness; energy access; food and nutrition security; watersecurity and access; enabling digitalization; and protect-ing biodiversity and nature. In response, IFC has beenworking with partners at global and country levels tosupport its clients in enhancing resilience and laying thegroundwork for rebuilding better through various plat-forms. For example, in August 2023, IFC announced a$400 million increase and one-year extension of the Baseof the Pyramid (BOP) platform, bringing IFC’s total invest-ment to $1 billion. First launched in 2021, the platformaims to help financial services providers deliver criticalfunding to small and informal businesses, and low-incomehouseholds. In September 2023, IFC signed a $3.5 billioncredit insurance policy with 13 global insurance compa-nies under its Managed Co-Lending Portfolio Program(MCPP). The initiative, MCPP Financial Institutions GroupIII, will increase access to finance for micro, small andmedium enterprises, including women-owned businesses,as well as firms addressing climate change. On July 1,2024, the WBG guarantee platform, housed at MIGA, waslaunched to bring together products and experts from theWorld Bank, IFC, and MIGA and aims to boost WBG annualguarantee issuances for all entities. This executive summary highlights selected informa-tion and may not contain all of the information that isimportant to readers of this document. For a completedescription of IFC’s FY24 performance, as well as therisks and critical accounting estimates affecting IFC, thisMD&A should be read in its entirety. IFC is the largest global development institution focusedon the private sector in developing countries. Establishedin 1956, IFC is owned by 186 member countries, a groupthat collectively determines its policies. IFC is a memberof the World Bank Group (WBG)1but is a legal entity sep-arate and distinct from IBRD, IDA, MIGA, and ICSID, withits own Articles of Agreement, share capital, financialstructure, management, and staff. Membership in IFC isopen only to member countries of IBRD. IFC is not liablefor the obligations of the other institutions. IFC’s mission—as one of the WBG entities—is to endextreme poverty and boost shared prosperity on a livableplanet. As the private sector arm of the WBG, IFC providesfinancing and advisory services to support private sectordevelopment in developing economies as a key engine ofgrowth in line with good environmental, social and gov-ernance standards. To further support these efforts, theBoard and Management have been working on evolvingthe WBG to better address the scale of development chal-lenges. As part of this evolution, in October 202