ADB Records Highest Net Income Allocation in History at $1.539 Billion for 2024

This decision, endorsed by the Board of Governors, represents the highest net income allocation ever recorded in ADB’s nearly six-decade history.

The Asian Development Bank (ADB) has announced a historic milestone in its financial performance with the approval of its 2024 financial statements and a record-breaking $1.539 billion allocation from its net income. This decision, endorsed by the Board of Governors, represents the highest net income allocation ever recorded in ADB’s nearly six-decade history.

Unprecedented Net Income Allocation

The allocable net income for 2024 is defined as the bank’s net income after the appropriation of guarantee fees to the special reserve, and further adjusted by amounts reported under the cumulative revaluation adjustments account. This net income reflects ADB’s robust financial health and effective operational management in supporting sustainable development initiatives across Asia and the Pacific.

The breakdown of the $1.539 billion allocation is as follows:

• $1.016 billion to the Ordinary Reserve: This substantial allocation to the ordinary reserve underlines ADB’s strategy to strengthen its capital base, which is essential to sustain and expand lending operations in the future. The ordinary reserve serves as a critical earnings base, helping the institution generate steady income and maintain financial resilience.

• $393.5 million to the Asian Development Fund (ADF): The ADF plays a vital role in financing grant operations for the region’s poorest and most vulnerable developing member countries. The allocation to this fund ensures continued assistance in the form of concessional financing, enabling these countries to invest in poverty alleviation, infrastructure, health, education, and climate resilience.

• $130 million to the Technical Assistance Special Fund (TASF): By channeling funds into the TASF, ADB is reaffirming its commitment to enhancing project preparation and policy support across the region. These technical assistance grants help borrowing member countries design high-quality projects, conduct sectoral studies, and implement vital reforms to achieve long-term development goals.

Supporting Inclusive and Sustainable Growth

ADB’s record income allocation underscores its strategic financial planning and commitment to inclusive, resilient, and sustainable development. Despite ongoing global economic uncertainties, ADB has demonstrated strong financial stewardship and a deep-rooted capacity to adapt to the evolving needs of its member countries.

ADB President Masatsugu Asakawa noted that this milestone “reflects both the confidence of our shareholders in our governance and the increasing demand for ADB’s support across a broad range of development challenges.” He emphasized the bank’s role in financing climate-smart infrastructure, fostering innovation, and building resilience in communities across the region.

Continuing a Legacy of Impact Since 1966

Established in 1966, the Asian Development Bank is owned by 69 member countries, of which 50 are from the Asia-Pacific region. The bank has played a pivotal role in regional development by facilitating investments, offering policy advice, and leveraging partnerships to support nations in achieving economic growth and social progress.

With a forward-looking approach, ADB continues to deploy innovative financial instruments and develop cross-sectoral collaborations to ensure its assistance reaches those most in need. From climate change mitigation and adaptation to digital inclusion and gender equality, ADB’s expanding portfolio reflects its holistic vision of development.

Looking Ahead

The 2024 financial achievement not only enhances ADB’s operational capabilities but also positions it to address future development challenges with greater agility and impact. The increased allocation will empower the bank to respond to global shocks, such as pandemics or climate disasters, while upholding its mission of transforming lives throughout the region.

As ADB embarks on its next fiscal year, the institution remains dedicated to its core objectives of eradicating poverty, reducing inequality, and fostering sustainable prosperity.