Management's Discussion and Analysis and Condensed Quarterly Financial Statements: 30 June 2021 (Unaudited)

In: http://hdl.handle.net/11540/14173

Abstract

The Asia and the Pacific region has faced unprecedented economic and social challenges brought by the coronavirus disease (COVID-19) pandemic. In response, the Asian Development Bank (ADB) has taken major steps to assist its developing member countries (DMCs) through the $20 billion COVID-19 response package since March 2020. In addition, the $9 billion Asia Pacific Vaccine Access Facility (APVAX) was launched in December 2020, providing additional rapid and equitable support to help DMCs deliver effective and safe COVID-19 vaccines. As of 30 June 2021, ADB's cumulative COVID-19 response, including APVAX, achieved $19.4 billion commitments and $12.3 billion disbursements. While ADB prioritizes COVID-19 response, it continues to implement Strategy 2030, its long-term corporate strategy. ADB will be flexible and agile in balancing operations between COVID-19 response, including vaccine access, and support for a green, resilient, and inclusive recovery. Ordinary capital resources (OCR) reported net income of $657 million ($584 million – 2020) and allocable net income of $584 million ($343 million – 2020) for the six months ended 30 June 2021. Higher net income in 2021 reflected more stable credit and macroeconomic environment, resulting in $31 million release of provision for credit losses compared to the $191 million provision expense in 2020. The increase in allocable net income was mainly due to the realized gain from equity investment divestment and higher net income. The OCR balance sheet continued to grow in line with its growing lending operations. Loans outstanding balance at 30 June 2021 was $131.8 billion, a $2.0 billion increase from $129.8 billion at 31 December 2020. Liquidity investments after swaps increased by $9.1 billion from $42.2 billion at the end of 2020 to $51.3 billion as of 30 June 2021. Borrowings after swaps increased by $15.4 billion to $140.0 billion at 30 June 2021 from $124.6 billion at the end of 2020. For the six months ended 30 June 2021, ADB issued $28 billion bonds ($28 billion – ...