                                 Information Statement

   International Bank for Reconstruction
                and Development

The International Bank for Reconstruction and Development (IBRD) intends from time to time to issue its
notes and bonds with maturities and on terms determined by market conditions at the time of sale. The notes
and bonds may be sold to dealers or underwriters, who may resell them, or they may be sold by IBRD directly
or through agents.
The specific currency, aggregate principal amount, maturity, interest rate or method for determining such rate,
interest payment dates, if any, purchase price to be paid to IBRD, any terms for redemption or other special
terms, form and denomination of such notes and bonds, information as to stock exchange listing and the names
of the dealers, underwriters or agents in connection with the sale of such notes and bonds being offered at a
particular time, as well as any other information that may be required, will be set forth in a prospectus or
supplemental information statement.
Except as otherwise indicated, in this Information Statement (1) all amounts are stated in current United States
dollars translated as indicated in the Notes to Financial Statements: Note A and (2) all information is given as
of June 30, 2025.

                                          AVAILABILITY OF INFORMATION
This Information Statement will be filed with the U.S. Securities and Exchange Commission electronically
through the EDGAR system and will be available at the Internet address http://www.sec.gov/edgar.shtml.
Upon request, IBRD will provide additional copies of this Information Statement without charge. Written
or telephone requests should be directed to IBRD's main office at 1818 H Street, N.W., Washington,
D.C. 20433, Attention: Capital Markets and Investments Department, tel: (202) 477-2880, or to IBRD's Tokyo
office at Fukoku Seimei Building 14F, 2-2-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan,
tel: (81)-3-3597-6650.
The Information Statement is also available on IBRD's Investor Relations website at
http://www.worldbank.org/debtsecurities/. Other documents and information on IBRD's website are not
intended to be incorporated by reference in this Information Statement.

Recipients of this Information Statement should retain it for future reference, since it is intended that
each prospectus and any supplemental information statement issued after the date hereof will refer to
this Information Statement for a description of IBRD and its financial condition, until a subsequent
information statement is filed.

September 23, 2025
                                                 SUMMARY INFORMATION
                                       As of June 30, 2025, unless otherwise indicated

The International Bank for Reconstruction and Development (IBRD) is an international organization established
in 1945 and owned by its member countries. As a global development cooperative owned by 189 member
countries, IBRD's purpose is to work with its borrowing members so that they can achieve equitable and
sustainable economic growth in their national economies and find effective solutions to pressing regional and
global problems in economic development and environmental sustainability, all with a view to overcoming
poverty and improving standards of living. It pursues this goal primarily by providing financing, risk
management products and other financial services, access to experts, and a pool of knowledge in development-
related disciplines so that borrowing members can pool, administer, and prioritize resources they dedicate to
development-related objectives. The six largest shareholders of IBRD are the United States (with 15.79% of the
total voting power), Japan (7.00%), China (5.85%), Germany (4.16%), and France and the United Kingdom (with
3.82% each).

The financial strength of IBRD is based on the continued support it receives from its shareholders, and on its
array of financial policies and practices. Shareholder support for IBRD is reflected in the capital backing it
continues to receive from its members and in the record of its borrowing member countries in meeting their debt
service obligations to IBRD. In October 2018, the Governors approved a new General and Selective Capital
Increases (GCI and SCI) as part of a capital package that includes institutional and financial reforms designed to
ensure long-term financial sustainability. The capital increases would result in additional subscribed capital of up
to $60.1 billion, with $7.5 billion of paid-in capital and $52.6 billion of callable capital. The subscription period
for the GCI and SCI ends on October 1, 2025.

To meet its development goals, the WBG supports client countries' efforts to implement programs to improve
growth and development outcomes with a vision to create a world free of poverty on a livable planet. Further,
new and ongoing factors continue to influence the global outlook, including: global market uncertainties,
migration surges, youth unemployment, energy access, climate adaptation and mitigation, and growing fragility.
IBRD continues to work with partners at global and country levels and its borrowing countries to maximize the
impact for development by efficiently channeling resources into projects that create jobs, drive growth, reduce
poverty, and improve living standards. To further support these efforts, the Boards of Directors and management
have been reforming the WBG and are working to better address the scale of development needs. This process
includes initiatives to increase impact, expand financing capacity, support projects that address global challenges
with cross-border externalities, and modernize the approach to delivery.

Basis of Reporting and Results of Operations

IBRD's financial statements conform with accounting principles generally accepted in the United States of
America (U.S. GAAP). Generally, Investments  Trading, Borrowings, and Derivatives are reported at fair value
in the Balance Sheets, with changes in fair value reported in the Statements of Income. Changes in IBRD's own
credit are reflected in Other Comprehensive Income. Hybrid capital and IBRD's loans are reported at amortized
cost. Management uses net income as the basis for deriving allocable income.

IBRD had net income of $2,100 million for FY25. Management recommends allocations of income to the Board,
at the end of each fiscal year, to augment reserves and support developmental activities. These allocations are
based on allocable income, which is derived by adjusting the reported net income to exclude certain items, in
order to arrive at amounts realized during the year and available for use. IBRD has earned positive allocable
income every year since 1964. IBRD's allocable income was $2,384 million for the fiscal year ended June 30,
2025.

                                                                    2
Equity and Borrowings
Equity  As of June 30, 2025, IBRD's shareholders have subscribed to $326.8 billion of capital, $22.9 billion of
which has been paid in and the remainder of which is callable. The callable portion may be called only to meet
IBRD's obligations for funds borrowed or loans guaranteed and is, thus, not available for use by IBRD in making
loans. IBRD's equity also included $40.4 billion of retained earnings. The equity-to-loans ratio was 21.6%.

Borrowings  IBRD diversifies its borrowings by currency, country, source and maturity to provide flexibility
and cost-effectiveness in funding. It has borrowed in all of the world's major capital markets, as well as directly
from member governments and central banks. IBRD's outstanding borrowings totaled $306.2 billion as of
June 30, 2025.

Assets
Loans  The largest component of IBRD's assets are its loans outstanding. The net loans outstanding were
$280 billion as of June 30, 2025. IBRD's net loan commitments in FY25 totaled $40.9 billion. In accordance
with the Articles of Agreement (Articles), all of IBRD's loans are made to, or guaranteed by, member countries.
IBRD's Articles also limit the total amount of loans and guarantees IBRD can extend. IBRD loans are made only
to countries deemed creditworthy.

Loans in nonaccrual status totaled 0.5% of IBRD's loans outstanding and were related to two borrower countries.
IBRD's accumulated provision for losses on loans and other exposures was less than 1% of the underlying
exposures as of June 30, 2025.

Liquid Asset Portfolio  IBRD holds a portfolio of liquid investments to help ensure that it can meet its financial
commitments and to retain flexibility in the timing of its market borrowings. As of June 30, 2025, its liquid asset
portfolio totaled $96 billion. Under IBRD's liquidity management guidelines, aggregate liquid asset holdings are
kept at or above a specified prudential minimum to safeguard against cash flow interruptions. The Target
Liquidity Level represents twelve-months' coverage as calculated at the start of every fiscal year. The Prudential
Minimum is defined as 80% of the Target Liquidity Level. The maximum guideline of 150% of the Target
Liquidity Level continues to function as a guideline rather than a hard ceiling. As of June 30, 2025, the liquid
asset portfolio was 148% of the Target Liquidity Level. The FY26 Target Liquidity Level is set at $79.0 billion,
$14.0 billion higher than FY25 Target Liquidity Level due to higher projected debt service and net loan
disbursements in FY26.

Asset / Liability Management
IBRD seeks to avoid exchange rate risks by matching its liabilities in various currencies with assets in those same
currencies and by matching the currency composition of its equity to that of its outstanding loans. IBRD also
seeks to limit its interest rate risk in its loan and liquidity portfolio. IBRD uses derivatives, including currency
and interest rate swaps, in connection with its operations in order to better manage balance sheet risks. The credit
exposures on swaps are controlled through specified credit-rating requirements for counterparties and through
netting and collateralization arrangements.

                            The above information is qualified by the detailed information
                   and financial statements appearing elsewhere in this Information Statement.

                                                                    3
                                        SECTION I: OVERVIEW

Introduction

International Bank for Reconstruction and Development (IBRD), an international organization owned by its 189
member countries, is one of the five institutions of the World Bank Group (WBG1). Each institution is legally
and financially independent, with separate assets and liabilities. IBRD is not liable for the obligations of the other
institutions.

IBRD is a Multilateral Development Bank (MDB) that combines knowledge services and financing with a global
reach. IBRD's value is derived from its ability to help eligible borrowing members address their development
challenges and meet their rising demand for innovative products. IBRD provides loans, guarantees, and other
financial products for development-focused projects and programs primarily to middle-income and creditworthy
lower-income countries to support sustainable development. By operating across a full range of country clients,
IBRD maintains a depth of development knowledge, uses its convening power to promote development, and
coordinates responses to regional and global challenges.

Member countries use IBRD's technical advice and analysis and convening power to develop or implement
better policies, programs, and reforms that help sustain development over the long term. The products delivered
range from development data, to reports on key social economic and social issues at the local, country, regional
and global levels. The products also include knowledge-sharing workshops focused on local issues, flagship
events and fora to address the most pressing global development challenges.

IBRD's mission is to end extreme poverty and boost shared prosperity on a livable planet by providing countries
with loans, guarantees, advisory services, analytical support and other products.

IBRD and its affiliated institutions seek to help countries in reducing poverty and inequality, and achieve
progress toward development objectives, including economic growth, job creation, governance, human capital,
infrastructure, and debt transparency. To meet its development goals, the WBG supports client countries' efforts
to implement programs to improve growth and development outcomes with a vision to create a world free of
poverty on a livable planet. Further, new and ongoing factors continue to influence the global outlook, including:
global market uncertainties, migration surges, youth unemployment, energy access, climate adaptation and
mitigation, and growing fragility. IBRD continues to work with partners at global and country levels and its
borrowing countries to maximize the impact for development by efficiently channeling resources into projects
that create jobs, drive growth, reduce poverty, and improve living standards. To further support these efforts, the
Boards of Directors and management have been reforming the WBG and are working to better address the scale
of development needs. This process includes initiatives to increase impact, expand financing capacity, support
projects that address global challenges with cross-border externalities, and modernize the approach to delivery.

Financial Business Model

IBRD's objective is not to maximize profits, but to earn adequate income to ensure that it has the long- term
financial capacity necessary to support its development activities. IBRD seeks to generate sufficient revenue to
finance its operations as well as to be able to grow reserves to strengthen its financial position.

It also seeks to provide support to IDA and certain trust funds through income transfers for other developmental
purposes.

1 The other WBG institutions are the International Development Association (IDA), the International Finance
      Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for
      Settlement of Investment Disputes (ICSID). The World Bank consists of IBRD and IDA.

                                                                    4
IBRD's financial strength rests on the support it receives from its shareholders, and on its array of financial
policies and practices. Shareholder support for IBRD is reflected in the capital backing it continues to receive
from its members and in the record of its borrowing member countries in meeting their debt service obligations
to IBRD. Sound financial and risk management policies and practices have enabled IBRD to maintain adequate
capital, diversify its funding sources, hold a portfolio of liquid investments to meet its financial commitments,
and limit its risks, including credit and market risks.

IBRD offers its borrowers, in middle-income and creditworthy low-income countries, loans with maturities up to
35 years. For some projects, the maximum loan maturity can be extended to up to 50 years (Table 16). Borrowers
may customize their repayment terms to meet their debt management or project needs, in multiple currencies.
Borrowers have generally preferred loans denominated in U.S dollars and euros. IBRD also supports its
borrowers by providing access to risk management products such as derivative instruments, including currency
and interest rate swaps, catastrophe derivatives, and interest rate caps and collars.

To meet its development goals, IBRD intermediates funds for lending from the international capital markets.
IBRD's loans are largely financed through its equity and from borrowings raised in the capital markets and from
shareholders. IBRD is rated triple-A by the major rating agencies and its bonds are viewed as high-quality
securities by investors. IBRD's funding strategy is aimed at achieving the best long-term value on a sustainable
basis for its borrowing members. This strategy has enabled IBRD to borrow at favorable market terms and pass
the savings on to its borrowing members. IBRD's annual funding volumes vary from year to year, and funds
raised are used to finance development projects and programs in member countries. Funds not deployed for
lending are maintained in IBRD's investment portfolio to supply liquidity for its operations.

IBRD uses derivatives to manage its exposure to various market risks from the above activities. These are used to
align the interest and currency composition of its assets (loan and investment portfolios) with that of its liabilities
(borrowing portfolio), and to stabilize earnings on the portion of the loan portfolio funded by equity. See Section
IX: Risk Management for additional details on how IBRD uses derivatives.

Management believes that these risk management strategies, taken together, effectively manage market risk in
IBRD's operations from an economic perspective. However, these strategies entail the use of derivatives, which
introduce volatility in net income through unrealized mark-to-market gains and losses (particularly given the
long-term nature of some of IBRD's assets and liabilities). Accordingly, management makes decisions on income
allocation without reference to unrealized mark-to-market gains and losses on risk management instruments in
the non-trading portfolios  see Basis of Reporting  Allocable Income.

Sources and Uses of Revenue

IBRD's primary sources of revenue are from loans and investments, both net of funding costs (Figure 1). These
revenues cover administrative expenses, provisions for losses on loans and other exposures2 (LLP), as well as
transfers to Reserves, Surplus, and for other development purposes, including transfers to IDA.

In addition, other development activities generate non-interest revenue that is classified as Revenue from
externally funded activities. These external funds include trust fund fees, reimbursable funds, and revenues from
fee-based services to member countries. Non-interest revenue from externally funded activities provides
additional capacity to support the development needs of client countries.

2 Other exposures include deferred drawdown options (DDO), irrevocable commitments, exposures to
      member countries' derivatives and guarantees.

                                                                    5
                          Figure 1: Sources and Uses of Revenue

                                       Sources                         Uses

Simplified Balance Sheet  Revenue      Funding        Net Interest     Admin
                                                      Revenue        Expenses
      Liquid
  Investments             Return on -  Cost of     =  Investment         LLP
                                       borrowings     Revenue, net   Reserves
                          Investments
                                                                     IDA, Other
                   Debt   Loan     -   Cost of     =  Loan Interest  transfers &
Loans                     Revenue      borrowings     Revenue, net
                                                                       Surplus
Equity

Basis of Reporting

Reported Basis

IBRD's financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America (U.S. GAAP) and are independently audited on an annual basis. Generally,
Investments--Trading, Borrowings, and Derivatives are reported at fair value in the Balance Sheets, with
changes in fair value reported in the Statements of Income. Changes in IBRD's own credit are reflected in Other
Comprehensive Income. Hybrid capital and IBRD's loans are reported at amortized cost in the Balance Sheets.

The variability in IBRD's reported net income is inherently driven by the unrealized mark-to-market gains and
losses on the financial instruments in IBRD's non-trading portfolios as not all financial instruments are reported
on the same measurement basis. IBRD's risk management strategy entails the use of derivatives to manage
market risk. These derivatives are primarily used to align the interest rate and currency bases of its assets and
liabilities. IBRD has elected not to designate any hedging relationships for accounting purposes. Rather, all
derivative instruments are reported at fair value on the Balance Sheets, with changes in fair values accounted for
through the Statements of Income.

Non-GAAP Measures

Management uses certain non-GAAP financial measures to evaluate the underlying operations and financial
performance of IBRD. A non-GAAP financial measure is a measure that is adjusted to exclude, include, or
reclassify certain items or components from the most directly comparable measure calculated in accordance with
U.S. GAAP and reported in the audited financial statements.

                                       6
Allocable Income
IBRD's Articles of Agreement (the Articles) require that the Board of Governors determine the allocation of
income at the end of every fiscal year. Allocable income is a non-GAAP measure that reflects income available
for allocation. IBRD defines allocable income as net income after certain adjustments. These adjustments
primarily relate to unrealized mark-to-market gains and losses associated with the non-trading portfolios, as well
as Board of Governors-approved transfers, which primarily relate to the allocation of the prior year's net income.
In line with its financial risk management policies, for the non-trading portfolios, unrealized mark-to-market
gains and losses from instruments reported at fair value (borrowing portfolio, and derivatives in the loan and
other Asset/Liability Management (ALM) portfolios) are excluded from allocable income.
For the trading portfolio (investment portfolio), allocable income generally includes both realized and unrealized
mark-to-market gains and losses. In some cases, the unrealized mark-to-market gains and losses on certain trades
are excluded from allocable income when the underlying item is an asset held at amortized cost.
See Section III: Financial Results and Table 9, for details of the adjustments to reported net income to calculate
allocable income.
Equity-to-Loans Ratio
IBRD's capital adequacy model mandates that IBRD hold capital for credit risk, market risk, and operational risk
covering all activities and assets on its books. The Equity-to-Loans ratio is a key indicator of IBRD's capital
adequacy representing IBRD's usable equity as a percentage of its total loans, guarantees and other exposures.
See Section IX: Risk Management and Table 33 for more details on the Equity-to-Loans ratio.
Budget Anchor Ratio
The Budget Anchor is an efficiency metric to monitor the coverage of IBRD's net administrative expenses by its
loan spread revenue.
See Section III: Financial Results and Table 7 for more details of the Budget Anchor components.

                                                                    7
                              SECTION II: EXECUTIVE SUMMARY

This Management's Discussion and Analysis (MD&A) discusses the financial results of the International Bank
for Reconstruction and Development (IBRD) for the fiscal year ended June 30, 2025 (FY25). IBRD undertakes
no obligation to update any forward-looking statements. Certain reclassifications of prior years' information have
been made to conform with the current year's presentation. For discussion of IBRD's financial results for the
year ended June 30, 2024, as compared to the year ended June 30, 2023, see Section III: Financial Results in
IBRD's MD&A and Financial Statements for the fiscal year ended June 30, 2024 (FY24).

Table 1: Selected Financial Data

In millions of U.S. dollars, except ratios which are in percentages

                                                                                                                   As of and for the fiscal years ended June 30

                                                                                                                   2025       2024       2023

Lending Highlights (Section IV)                                                                                    $ 40,885 $ 37,568 $ 38,572
Loans and Guarantees                                                                                                  30,779 33,450 25,504
                                                                                                                      14,794 20,115 12,736
      Net commitments a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Gross disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          $ (815) $ (371) $ (221)
      Net disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Statement (Section III)                                                                                     2,100      2,142      1,144
      Board of Governors-approved transfers . . . . . . . . . . . . . . . . . . . . . . . . .
      Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $399,511   $356,612   $332,641
Balance Sheet (Section III)                                                                                         102,674      82,728     79,199
      Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    280,043    260,236    241,041
      Investments-Trading b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           306,161    261,790    237,265
      Net loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             72,012     63,484     60,382
      Borrowings b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   $ 2,384 $ 1,849 $ 1,312
Non-GAAP Measures:
Allocable Income (Section III) c                                                                                   1,182      834        921
      Allocable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Allocated as follows:                                                                                        782        515        291

            General Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          420        500        100
            International Development Association . . . . . . . . . . . . . . . . . . . . .
            Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 57,878 $ 54,655 $ 53,105
Usable Equity d e (Section VIII) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-to-Loans ratio f (Section IX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 21.6% 21.5% 22.0%

a. Commitments that have been approved by the Executive Directors (referred to as "the Board" in this
      document), and are net of full terminations and cancellations relating to commitments approved in the same
      fiscal year.

b. See Notes to the Financial Statements: Note C--Investments, Note E--Borrowings.
c. Refer to Table 9: Allocable Income and Recommended Allocations for a reconciliation to net income as per

      reported basis.
d. Excludes amounts associated with unrealized mark-to-market gains/losses on non-trading portfolios, net

      and related cumulative translation adjustments.
e. Usable Equity includes the impact of the transfer to the General Reserve from FY25 net income, which was

      approved by the Board on August 7, 2025. See Usable Equity components in Table 33: Equity-to-Loans
      Ratio and reconciliation of IBRD's Total equity to Usable equity in Table 34: Usable Equity.
f. See components in Table 33: Equity-to-Loans Ratio

                                                                     8
Summary Financial Results

Net Income

IBRD recorded net income of $2,100 million for the fiscal year ended June 30, 2025, a decrease of $42 million,
compared with net income of $2,142 million for the fiscal year ended June 30, 2024. The decrease in FY25 was
primarily due to higher Board of Governors-approved transfers by $444 million. This was partially offset by an
increase in interest revenue net of borrowing expenses and lower provision expense for losses on loans and other
exposures.

Allocable Income

Allocable income is a non-GAAP measure IBRD uses for making net income allocation decisions. Given IBRD's
intention to maintain its non-trading portfolio positions to maturity, unrealized mark-to-market gains and losses
for these portfolios are not included in IBRD's allocable income. In addition, Board of Governors-approved
transfers are also excluded from IBRD's allocable income since these amounts relate to allocations out of prior
year allocable income, surplus, or restricted retained earnings.

For the fiscal year ended June 30, 2025, allocable income was $2,384 million, compared with $1,849 million for
the fiscal year ended June 30, 2024. The increase was primarily due to the increase in net revenue on interest
earning assets in FY25, compared to FY24 (Section III).

In millions of U.S. dollars  Allocable income
4,000                        Net Income/Loss
                             Unrealized gains/losses on non-trading portfolios

2,000
     0

-2,000

        FY21                           FY22     FY23                      FY24  FY25

Lending Operations

IBRD's lending operations during the fiscal year ended June 30, 2025 provided $40.9 billion of net commitments
(Table 12) and $30.8 billion of gross loan disbursements (Table 13). Net disbursements of $14.8 billion were the
key driver of the increase in net loans outstanding from $260.2 billion as of June 30, 2024 to $280.0 billion as of
June 30, 2025.

In billions of U.S. dollars                           Disbursements                Net Loans outstanding

              Net Commitments          45                                 300
   45                                  36                                 250
   36                                  27                                 200
   27                                  18                                 150
   18                                                                     100
                                        9
    9                                   0                                  50
    0                                                                        0
                                                FY21 FY22 FY23 FY24 FY25            Jun 21 Jun 22 Jun 23 Jun 24 Jun 25
             FY21 FY22 FY23 FY24 FY25
                                                          Gross Net

                                             9
Net commitments were $3.3 billion higher compared with FY24 (Table 12). The regions with the largest share of
commitments during FY25 were Latin America and the Caribbean with 30%, and Europe and Central Asia with
26%. Gross disbursements were $2.7 billion lower compared to FY24 (Table 13). The regions with the largest share
of gross disbursements were Europe and Central Asia with 26%, and Latin America and the Caribbean with 26%.

Investments--Trading                                          In billions of U.S. dollars

IBRD's Investments--Trading increased by                      Investments - Trading
$20.0 billion, from $82.7 billion as of June 30, 2024
to $102.7 billion as of June 30, 2025. The increase               120
was primarily due to net new debt issuances that                   90
were higher than net loan disbursements during the                 60
year, and is consistent with the higher target liquidity           30
level in FY25 compared to FY24 (Section III and                      0
Section VI). As of June 30, 2025, 77% of the                                  Jun 21 Jun 22 Jun 23 Jun 24 Jun 25
investments are rated AA or above (Table 35).

Borrowings                                                    In billions of U.S. dollars

Borrowings reported at fair value: As of June 30,             Borrowings
2025, the borrowings reported at fair value were
$305.7 billion, $43.9 billion higher than June 30,               320
2024. The increase was mainly due to net new debt                240
issuances that financed the growing development                  160
and lending operations and satisfied liquidity
requirements.                                                      80
                                                                     0
Borrowings reported at amortized cost: As of                                  Jun 21 Jun 22 Jun 23 Jun 24 Jun 25
June 30, 2025, the borrowings reported at amortized
cost were $482 million, all related to IBRD's
issuances of hybrid capital (Section III and
Section IX).

Equity-to-Loans Ratio                                         Ratio in percentages
                                                              Equity-to-Loans Ratio
The Equity-to-Loans ratio marginally increased from
21.5% as of June 30, 2024 to 21.6% as of June 30,                30%
2025, primarily due to the increase in usable equity
outpacing the increase in loan exposures, and                 20%
remained above the policy minimum of 18%. In line
with IBRD's currency management approach,                     10%
exchange rate movements during the year did not
have an impact on IBRD's Equity-to-Loans ratio                     Jun 21 Jun 22 Jun 23 Jun 24 Jun 25
(Section VIII and Section IX).
                                                                   Equity-to-Loans Ratio  Policy Minimum
In FY25, IBRD received $0.5 billion of paid-in capital
subscribed under the 2018 General and Selective
Capital Increases (GCI and SCI), bringing the
cumulative amounts received to $6.5 billion,
representing 86% of the total amount available for
subscription. The subscription period for the GCI and
SCI ends on October 1, 2025.

                                                          10
                               SECTION III: FINANCIAL RESULTS

Portfolio Performance and Financial Results

The following table shows IBRD's Condensed Balance Sheets for FY25 and FY24 and the key factors driving
these financial results.

Table 2: Condensed Balance Sheets

In millions of U.S. dollars

As of June 30,                                                                 2025       2024    Decrease             Increase
                                                                                                    (10,274)
Investments and due from banks . . . . . . . . . . . . . .                  $103,173   $ 83,297                         19,876
Net loans outstanding a . . . . . . . . . . . . . . . . . . . . . .          280,043    260,236                         19,807
Derivative assets, net . . . . . . . . . . . . . . . . . . . . . . .              666        456              210
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     15,629     12,623               3,006
                                                                                                                         42,899
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    $399,511   $356,612
                                                                                                                          44,371
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     306,161    261,790
Derivative liabilities, net . . . . . . . . . . . . . . . . . . . . .          12,454     22,728              274
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                         8,528
Total Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        8,884      8,610                         42,899
                                                                               72,012     63,484
Total Liabilities and Equity . . . . . . . . . . . . . . . . .
                                                                            $399,511   $356,612

a. The fair value of IBRD's loans was $278,883 million as of June 30, 2025 ($257,415 million  June 30,
      2024).

The main drivers of the change in the Balance Sheet items are below:

        Increase in investments and due from banks primarily due to net new debt issuances exceeding net loan
            disbursements;

        Increase in net loans outstanding primarily from net loan disbursements of $14.8 billion;

        Increase in other assets mainly from the increase in the overfunded status of the Staff Retirement Plan
            (SRP) and Retired Staff Benefits Plan (RSBP);

        Increase in borrowings primarily due to net new issuances;

        Decrease in derivative liabilities, net due to the gains on borrowing-related derivatives as a result of the
            decrease in relevant interest rates; and

        Increase in total equity, primarily due to the increase in accumulated other comprehensive income
            (AOCI) due to the net actuarial gains on benefit plans and the net income during the year.

Net Income

IBRD's net income was $2,100 million in FY25, compared with net income of $2,142 million in FY24. The
decrease was primarily due to higher Board of Governors-approved transfers of $444 million. This was partially
offset by an increase in interest revenue net of borrowing expenses, and lower provision expense for losses on
loans and other exposures. The $815 million of Board of Governors-approved transfers were expensed as grants
upon approval by the Board of Governors in FY25, and were funded from IBRD's prior years' allocable income.

                                                                            11
Table 3: Condensed Statements of Income

In millions of U.S. dollars

                                                                                                                                         Impact on income

For the fiscal year ended June 30,                                                                              2025 2024                Decrease            Increase
Interest revenue
                                                                                                                $ 15,301 $ 15,831        (530)
  Loans, net (Table 43)
  Other asset / liability management derivatives, net                                                           (1,293) (1,726)                                   433
  Investments-Trading, net (Table 43) . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                               107
  Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,444 4,337                             --
  Borrowing expenses, net (Table 43) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest revenue, net of borrowing expenses (Table 44) . . . . . . . . . . .                                    2          2                                        295
                                                                                                                                                                     305
                                                                                                                (14,920) (15,215)

                                                                                                                $ 3,534 $ 3,229

Provision for losses on loans and other exposures, release (charge) . .                                         75       (94)                                      169
Non-interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                947      960                       (13)
  Revenue from externally funded activities (Table 6) . . . . . . . . . . . . . . .                                                                         3
  Commitment charges (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  152      149                                     128

  Other, net (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      170      42

Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           (2,522)  (2,379)         (143)
  Administrative a (Table 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             (17)     (17)                         --
  Contributions to special programs (Table 6) . . . . . . . . . . . . . . . . . . . . . .                          150      170
 Other, net b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     (20)

Board of Governors-approved transfers . . . . . . . . . . . . . . . . . . . . . . . . .                         (815) (371)              (444)
Currency remeasurement (losses) gains, net . . . . . . . . . . . . . . . . . . . . . . .                                                    (117)
Unrealized mark-to-market gains on Investments-Trading portfolio, net . .                                       (44)     73                                     123
Unrealized mark-to-market gains on non-trading portfolios, net . . . . . . . .                                                                   (33)
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      214      91                      (42)

                                                                                                                256      289

                                                                                                                $ 2,100 $ 2,142

a. Includes pension service cost of $287 million for the year ended June 30, 2025 ($284 million  June 30,
      2024). See Table 6.

b. Includes income from net pension cost, other than service cost of $175 million for the year ended June 30,
      2025 ($194 million  June 30, 2024) (Table 6).

Table 4 below provides an interest rate and volume analysis of IBRD's interest revenue and borrowing expenses.
The variance reflects the year-over-year change in interest income on loans, investments-trading, and borrowing
expenses between FY24 and FY25.

Table 4: Rate and Volume Analysis of Changes in Interest Revenue and Borrowing Expenses

In millions of U.S. dollars

                                                                                                                                   FY 2025 versus FY 2024

                                                                                                                                         Variance due to changes in

                                                                                                                         Total Variance         Volume               Rate

Increase (decrease) in Interest revenue related to:                                                                      $(530)          $ 1,150             $(1,680)
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            107               600                (493)
Investments-Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Increase) decrease in Interest expense related to:                                                                      $ 295           $(1,688) $ 1,983
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                         12
As illustrated in Figure 1, investments are funded by borrowings, and loans are funded by borrowings and equity.
Under IBRD's pricing policy, the lending rates for IBRD's loans are based on the underlying cost of the
borrowings funding these loans, therefore, interest revenue, net of funding costs provides an overall view of
IBRD's net income generation. Table 5 below shows revenue on interest earning assets net of interest expenses
from borrowings funding these assets and the other components of allocable income.

Table 5: Statement of Allocable Income (non-GAAP Measures)

In millions of U.S. dollars

                                                                                                                          Impact on income

For the fiscal year ended June 30,                                                                       2025 2024        Decrease               Increase
Revenue on interest earning assets
                                                                                                                                                 208
Loan interest margin a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,327 $ 2,119      (261)
Loan interest revenue from loans funded by equity . . . . . . . . . . . . . . . . 2,494 2,755                                       (53)                  433
                                                                                                                                                        384
Loan interest revenue, net of funding costs (Table 43) . . . . . . . . . . . $ 4,821 $ 4,874                                                  4

Other asset / liability management (ALM) derivatives, net (Table 3) . . (1,293) (1,726)

Investment revenue, net of funding costs (Table 43) . . . . . . . . . . . . . . .                        65   61

Total revenue on interest earning assets, net (Table 44) . . . . . . . . . . $ 3,593 $ 3,209                                                    169
                                                                                                                          (148)
Provision for losses on loans and other exposures, release                                               75 (94)
   (charge) (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  3
                                                                                                         (1,582) (1,434)                      128
Net non-interest expenses (Table 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitment charges (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               152 149                   (1)
Non-interest revenue--Other, net (Table 3) . . . . . . . . . . . . . . . . . . . . . .                                                                         535
Non-interest expenses--Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             170  42

                                                                                                         (24) (23)

Allocable Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,384 $ 1,849

a. Represents the margin between loan returns and associated debt cost.

See Section XIV: Reconciliations of Components of Allocable Income and Table 9 for a reconciliation of the
components of Table 3 and Table 5.

                                    13
Results from Lending Activities
Loan Interest Revenue

Under IBRD's pricing policy, the lending rates for all loans are based on the underlying cost of the borrowings
funding these loans. After the effect of related derivatives, the loan and borrowing portfolios are based on
variable interest rates (Figure 2). The portion of loans funded by equity is sensitive to changes in short-term
interest rates.

  Figure 2: Loan interest revenue and funding cost                    Figure 3: Loan interest revenue, net of funding
               (including related derivatives)                                                  costs a
                  In millions of U.S. dollars
                                                                             In millions of U.S. dollars
           Loan interest revenue (including related derivatives)
           Loan funding cost (including related derivatives)                 Loan interest revenue, net of funding costs 
                                                                             Loan interest revenue, net of funding costs  and
20,000                                                                       Other ALM derivatives, net combined

15,000                                                                6,000

10,000                                                                4,000

 5,000                                                                2,000

0                                                                          0                              FY25
        FY21 FY22 FY23 FY24 FY25                                                    FY21 FY22 FY23 FY24

                                                                      a. Includes related derivatives.

IBRD's FY25 loan interest revenue, net of funding costs was $4,821 million, a decrease of $53 million compared
with $4,874 million in FY24 (Figure 3), primarily driven by the decrease in average interest rates on the portion
of the loan portfolio which is sensitive to interest rate movements (Table 5). This was partially offset by the
higher lending volume during the year. Other ALM derivatives moderate the impact of interest rate changes on
the portion of loans that is sensitive to interest rate movements, thereby partially stabilizing the net interest
revenue earned from these loans (as illustrated in Figure 3). Other ALM derivatives comprise interest rate swaps,
which are used to convert the variable rate cash flows from these loans to fixed rate cash flows. The combined
effect of the decrease in loan interest revenue, net of funding costs of $53 million and the decrease in interest
expense from Other ALM derivatives, net of $433 million from FY24 to FY25, resulted in a total increase in net
loan interest revenue of $380 million.

In October 2024, as a part of the package of measures to deliver on WBG's new vision and mission, the Board
approved adjustments to IBRD's loan pricing, which include: 1) establishing a grace period, during which no
commitment fees are charged for the first four years for Investment Project Financing (IPF) and Program-for
Results Financing (PforRs); 2) removal of the prepayment premium; 3) introduction of a 7 year Short Maturity
Loan (SML) with a maturity discount applied to the contractual spread; and 4) expansion of the lowest pricing
group to include all Climate Resilient Debt Clause (CRDC)-eligible IBRD borrowers under current eligibility
requirements. See Section IV: Lending Activities for additional details on CRDC.

                                                                  14
Provision for losses on loans and other exposures

During FY25, IBRD recorded income from the release of provision for losses on loans and other exposures of
$75 million compared to a $94 million expense in FY24. As the majority of IBRD's loans carry variable interest
rates, changes in forward interest rates impact the expected losses that are recorded through the provision for
losses on loans and other exposures in the Statements of income. Accordingly, the provision release in FY25 was
primarily driven by the decrease in the loss given default (severity) due to the decrease in the relevant implied
forward interest rates in FY25. The severity reflects the expected losses from delays in receiving interest
payments since IBRD does not charge interest on the portion related to overdue interest.

     Figure 4: Change in Net Loans Outstanding                                          Figure 5: Net Loans Outstanding
                 In billions of U.S. dollars                                                 In billions of U.S. dollars

300
                            30.8

                                                      5.0                 280.0    300                           280.0

280                                                *                               250 218.8 227.1 241.0  260.2
                                  (16.0)
             260.2
260                                                                                200

                                                                                   150

                                                                                   100

240                                                                                50

     Net Loans Gross loan Repayments Accumulated Translation          Net Loans    0
                                                                      outstanding
     outstanding disbursements and  provision for adjustments         as of June

     as of June                   prepayments loan losses and others   30, 2025         Jun 21 Jun 22 Jun 23 Jun 24 Jun 25

     30, 2024

* Indicates amount less than $0.1 billion.

As of June 30, 2025, IBRD's net loans outstanding totaled $280.0 billion, $19.8 billion or 8% higher than
June 30, 2024 (Figure 5). The increase was mainly attributable to $14.8 billion of net loan disbursements in
FY25.

Gross disbursements were $30.8 billion, a decrease of $2.7 billion compared to FY24 (Table 13).

                                                                      15
Results from Investing activities

Net Investment Revenue

During FY25, IBRD's net investment revenue increased by $4 million, compared to FY24 (Table 5). The
increase was primarily driven by higher unrealized mark-to-market gains on the investments-trading portfolio,
net in FY25, compared to FY24. This was largely offset by the higher funding costs that exceeded the increase in
investment interest revenue in FY25. See Table 43.

Investments--Trading

IBRD's Investments--Trading was $102.7 billion as of June 30, 2025 ($82.7 billion as of June 30, 2024). See
Figure 6 below and Note C: Investments in the Notes to the Financial Statements. The increase in the
Investments--Trading was primarily due to the net new debt issuances that were higher than net loan
disbursements during the year, and consistent with the higher target liquidity level in FY25 (see Section VI:
Investment Activities).

     Figure 6: Investments--Trading                                 Figure 7: Investment Revenue, net
          In billions of U.S. dollars                                      In millions of U.S. dollars

     Government, agency and corporate obligations            250
                                                             200
     Time deposits                                           150
                                                             100
     Other investments                             6.2
                                                              50
100                                                             0
            3.5
80                  3.6   3.3   4.4                          (50)
                                                                         FY21 FY22 FY23 FY24 FY25
     35.5                                          52.3

60                  39.5  36.8  46.0

40

20   48.6           38.7  39.0                     44.2

                                32.4

0

     Jun 21 Jun 22 Jun 23 Jun 24 Jun 25

Results from Borrowing activities

As of June 30, 2025, the borrowings were $306.2 billion, $44.4 billion higher than June 30, 2024 (Note E:
Borrowings in the Notes to the Financial Statements). The increase was primarily due to net new debt issuances
of $31.0 billion during the year. The $64.5 billion of medium-and long-term debt raised during the year
(Table 28) was diversified by investor profile and location, with an average maturity of 5.5 years. The funds
raised financed development lending operations and satisfied the liquidity requirements.

                                                         16
     Figure 8: Borrowings (Original Maturities)
                 In billions of U.S. dollars

     Short-term        Medium-and long-term

300                              13.0

     10.2          10.1   9.0

250         15.1

200

150  249.9                252.8  293.2

100         220.1  227.2

50

0
        Jun 21 Jun 22 Jun 23 Jun 24 Jun 25

Net Non-Interest Expenses

As shown in Table 6, IBRD's net non-interest expenses are primarily comprised of administrative expenses, net
of revenue from externally funded activities, and include costs related to Bank-executed activities for trust funds
and other externally funded activities. IBRD and IDA's administrative budget is a single resource envelope that
funds the combined work programs of both entities. The allocation of net administrative expenses between IBRD
and IDA is based on an agreed cost and revenue sharing methodology, approved by their Boards, which is
primarily driven by the relative level of lending, knowledge services, and other services between these
two entities.

                                  Figure 9: Net Non-Interest Expenses (Reported Basis)
                                                     In millions of U.S. dollars

                                               2,400
                                               1,800
                                               1,200

                                                 600
                                                     0
                                                             FY21 FY22 FY23 FY24 FY25

The increase in net non-interest expenses from FY24 to FY25, on both a reported basis and allocable income
basis, was primarily driven by higher administrative expenses (Table 6).

                   17
Table 6: Net Non-Interest Expenses

In millions of U.S. dollars

For the fiscal year ended June 30,                                                                                                  2025     2024 Variance

Administrative expenses                                                                                                             $1,261   $1,178   $ 83
      Staff costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        164      158       6
      Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     551      518      33
      Consultant fees and contractual services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         287      284       3
      Pension service cost a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             105        99      6
      Communications and technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          133      126       7
      Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     21       16      5
      Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                    $2,522 $2,379     $143
            Total administrative expenses b (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                    17       17        --
Contributions to special programs (Section V) (Table 3) . . . . . . . . . . . . . . . . . . . . . . .
Revenue from externally funded activities: (Section V)                                                                              (604)    (612)        8
                                                                                                                                     (49)     (47)       (2)
      Reimbursable revenueBank-executed activities for trust funds . . . . . . . . . . . . .                                        (91)     (99)        8
      Reimbursable advisory services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       (5)      (8)       3
      Revenue--Trust funds administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        (18)     (17)       (1)
      Restricted revenue (primarily externally financed outputs) . . . . . . . . . . . . . . . . .                                  (180)    (177)       (3)
      Revenue--Asset management services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other revenue c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         $ (947) $ (960)   $ 13

            Total Revenue from externally funded activities (Table 3) . . . . . . . . . . .                                         1,592 1,436        156
                                                                                                                                     (175) (194)         19
Net non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add: Inclusion of Net pension cost, other than service cost d (Table 3) . . . . . . . . . . . .                                     $1,417 $1,242     $175

Net non-interest expenses--Reported Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustments to arrive at net non-interest expenses--non-GAAP measure
Less: Exclusion of Pension, Externally Financed Outputs (EFO) and Reserve

   Advisory and Management Partnership (RAMP) adjustments e . . . . . . . . . . . . . . . . 165 192 (27)

Net non-interest expenses--non-GAAP measure (Table 5) . . . . . . . . . . . . . . . . . . . $1,582 $1,434 $148

a. The pension service cost represents the cost of benefits attributable to services performed by employees for
      the Bank during the fiscal year. See Notes to Financial Statements, Note K: Pension and Other Post-
      Retirement Benefits.

b. Includes expenses related to Bank-executed activities for trust funds of $604 million for FY25 and
      $612 million for FY24.

c. Includes fee revenue associated with services provided to affiliated organizations of $116 million in FY25
      ($112 million in FY24). See Notes to Financial Statements, Note H: Transactions with Affiliated
      Organizations.

d. Amount is included in Non-interest expenses - Other in the Statements of Income (Table 3).
e. Components of this adjustment are included in Table 9.

IBRD's goal is to have its net administrative expenses covered by its loan interest margin (see components of
loan spread in Box 1) and certain fee revenue, using a measure referred to as the Budget Anchor. In FY25,
IBRD's Budget Anchor was 63.4%, an increase of 0.7% compared with 62.7% in FY24. The increase was
primarily due to the relative increase in net non-interest expenses outpacing the increase in budget anchor
revenue (see Table 7 for details of the Budget Anchor components).

                                    18
Table 7: Budget Anchor Ratio

In millions of U.S. dollars

For the fiscal year ended June 30,                                                                                              2025   2024 Variance

Net non-interest expenses (Table 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,417 $1,242 $175
Pension, RAMP, EFO and other adjustments a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 192 (25)

Total expenses for Budget Anchor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,584 $1,434 $150

Loan interest margin (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2,327  2,119   208
Loan commitment fees (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  152    149      3
Guarantee fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     18     19     (1)

Total revenue for Budget Anchor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,497 $2,287                   $210

Budget Anchor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.4% 62.7% 0.7%

a. These adjustments are made to arrive at total expenses for Budget Anchor purpose.

Unrealized mark-to-market gains (losses) on non-trading portfolios, net

During FY25, the non-trading portfolios had $256 million of net unrealized mark-to-market gains ($289 million
net unrealized mark-to-market gains in FY24). The decrease in gains was mainly driven by the unrealized
market-to-market losses on loan related derivatives and borrowings, primarily due to the decrease in relevant
interest rates.

Table 8: Unrealized Mark-to-Market Gains (Losses) on Non-trading Portfolios, Net

In millions of U.S. dollars

For the fiscal year ended June 30,                                                                                              2025   2024 Variance

Loan related derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $(1,372) $(458) $ (914)
Other ALM derivatives, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowings, including related derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 1,839 708 1,131
Client operations and other derivatives, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                (234) 9 (243)

                                                                                                                                23 30         (7)

Unrealized mark-to-market gains (losses) on non-trading portfolios--Reported
   basis (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 256 $ 289 $ (33)

Loan Portfolio

Loans outstanding are reported at amortized cost on the Balance Sheets and therefore the mark-to- market effect on
loans is not reflected in reported net income. However, the derivatives used to convert the loans from fixed-rate to
variable-rate instruments, for asset / liability management purposes, are reported at fair value. From an economic
perspective, IBRD's loans, after the effect of derivatives, carry variable interest rates and have a low sensitivity to
the change in interest rates. The unrealized mark-to- market losses on loan related derivatives were $914 million
higher in FY25 compared to FY24, due to the more prominent decrease in relevant interest rates during the year.
See Section IX: Risk Management for additional details on how IBRD uses derivatives in the loan portfolio.

Other ALM Portfolio

IBRD uses derivatives to stabilize its interest revenue from the portion of loans that is sensitive to changes in short-
term interest rates. The Other ALM portfolio consists of derivatives which convert a portion of variable rate loan
cash flows to fixed rate loan cash flows. In FY25, IBRD recorded unrealized mark-to-market gains of
$1,839 million on this portfolio, primarily due to the decrease in relevant interest rates as of June 30, 2025
compared to June 30, 2024. The duration of this portfolio was 4.4 years as of June 30, 2025, within the Board
established limit of 5 years.

                                                                   19
Borrowing Portfolio

IBRD's borrowings and the related derivatives are reported at fair value, except for hybrid capital which is
reported at amortized cost on the Balance Sheets. IBRD recorded $234 million of net unrealized mark-to- market
losses on IBRD's borrowings at fair value and associated derivatives, due to the decrease in relevant interest rates
as of June 30, 2025 compared to June 30, 2024. The unrealized mark-to-market losses on the borrowings at fair
value were mainly driven by the decrease in relevant interest rates and exceeded the gains on the bond-related
derivatives. The net unrealized mark-to-market losses on IBRD's bonds exclude changes in IBRD's own credit,
referred to as the Debit Valuation Adjustment (DVA) on Fair Value Option elected liabilities, which is instead
recorded in AOCI. In FY25, the DVA was $991 million of unrealized mark-to-market gains, resulting mainly
from the widening of IBRD's credit spreads relative to the applicable reference rate during the year. This was
primarily driven by the widening of spreads across euro sovereign, supranational, and agency markets. As of
June 30, 2025, IBRD's Balance Sheets included a cumulative DVA of $1,664 million of mark-to-market gains
reflected in AOCI (See Notes to the Financial Statements, Note J  Fair Value Disclosures).

Income Allocation

Management recommends allocations of income to the Board, at the end of each fiscal year, to augment reserves
and support developmental activities. These allocations are based on allocable income. As illustrated in Table 9,
the key differences between allocable income and net income are (i) expenses related to Board of Governors-
approved transfers, (ii) non-functional currency translation adjustment gains and losses and (iii) unrealized
mark-to-market gains and losses on IBRD's non-trading portfolios, which are all excluded from allocable
income.

Table 9: Allocable Income and Recommended Allocations

In millions of U.S. dollars

For the fiscal years ended June 30,                                                                                                       2025   2024

Net Income (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $2,100 $2,142
Adjustments to Reconcile Net Income to Allocable Income:
                                                                                                                                           815    371
      Board of Governors-approved transfers (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       44    (73)
      Currency remeasurement losses (gains), net a (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      (252)  (287)
      Unrealized mark-to-market losses (gains) on non-trading portfolios, net b . . . . . . . . . . . . .                                 (169)  (194)
      Pension adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  (134)  (112)
      Income from PEBP and PCRF investment holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          (20)
      EFO, RAMP, LPF1, GFPP and other adjustments c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    2

Allocable Income (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $2,384 $1,849

Recommended Allocations
      General Reserve (Table 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,182 834
      Surplus (Table 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 500
      Transfer to IDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782 515

Total Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,384 $1,849

a. Currency remeasurements relating to assets and liabilities denominated in non-functional currencies.
b. Adjusted to exclude $4 million gains in FY25 ($2 million gains in FY24) reclassified to realized gains/

      losses.
c. Includes EFO income subject to contractual donor restrictions and transferred to Restricted Retained

      Earnings; RAMP-related revenue and expenses excluded under a Board-approved framework to ensure use
      solely for program delivery; and unrealized mark-to-market gains on IBRD Surplus-Funded Livable Planet
      Fund (LPF1) and Grant Facility for Project Preparation (GFPP) investments, representing funds restricted
      for the specified uses; and unrealized mark-to-market gains/losses on certain positions in the investments-
      trading portfolio, if any.

                                                                   20
All of the adjustments between reported net income and allocable income are recommended by management and
approved by the Board.

Adjustments to Net Income to arrive at Allocable Income:

Board of Governors-approved Transfers and Allocations

Board of Governors-approved transfers refer to the allocations recommended by the Board and approved by the
Governors, as part of the prior year's net income allocation process and subsequent decisions on uses of surplus,
as well as on payments from restricted retained earnings. Since these amounts primarily relate to allocations out
of IBRD's FY24 allocable income or Surplus, they are excluded from FY25 reported net income in calculating
FY25 allocable income.

During FY25, the Board of Governors approved the following transfers and allocations as shown in Table 10
below:

Table 10: Board of Governors-approved Transfers and Allocations

In millions of U.S. dollars

Date of approval                          Amount Retained Earnings Source            Beneficiary

Board of Governors-approved Transfers Reported in the Statements

of Income a:

September 9, 2024 . . . . . . . . . . $ 100 Surplus                        Trust Fund for Gaza and West Bank
                                                                           Trust Fund for Gaza and West Bank
September 18, 2024 . . . . . . . . .      200 Surplus                      IDA

September 18, 2024 . . . . . . . . .      515 FY24 allocable income

                  Total $ 815

Board of Governors-approved Allocations Reported as Reclassifications Within Retained Earnings:

                                                                           IBRD Surplus-Funded Livable

September 18, 2024 . . . . . . . . . $ 200 Surplus                         Planet Fund (LPF1) b

                                                                           Grant Facility for Project Preparation

January 17, 2025 . . . . . . . . . . . .  100 Surplus                      (GFPP) c

                  Total $ 300

a. These transfers are unconditional and expensed upon approval.
b. For the fiscal year ended June 30, 2025, less than $0.5 million of grants were expensed by the LPF1.
c. The Grant Facility for Project Preparation (GFPP) provides grants to support preparation of World Bank

      financed lending operations. The GFPP is currently financed by IBRD's surplus and is established for an
      initial period of 7 years. For the fiscal year ended June 30, 2025, no grants were expensed by the GFPP.

                                          21
Currency remeasurement gains/losses, net

Remeasurement gains and losses relating to non-functional currencies are reflected in reported net income. Since
these are unrealized gains/losses that relate to asset/liability positions still held by IBRD, they are excluded from
reported net income to arrive at allocable income and reflected in Other Reserves within Retained Earnings
(Table 11).

Unrealized mark-to-market gains (losses) on non-trading portfolios, net

These mainly comprise unrealized mark-to-market gains and losses on the loan, borrowing, and other ALM
portfolios as previously discussed. Since IBRD expects to maintain its non-trading portfolio positions to
maturity, the unrealized mark-to-market gains and losses on these positions are transitory and will reduce to zero
at maturity. For that reason, these gains and losses are excluded from net income to arrive at allocable income
and are reflected in Cumulative Fair Value Adjustments within Retained Earnings (Table 11).

Pension, PEBP and PCRF adjustments

The Pension adjustment reflects the difference between the accounting expense and IBRD's cash contributions to
the pension plans, the Post-Employment Benefit Plan (PEBP), and the Post-Retirement Contribution Reserve
Fund (PCRF). It also includes investment revenue earned on the PEBP and PCRF assets. The PCRF was
established by the Board to stabilize contributions to the pension and post-retirement benefits plans. Management
bases allocation decisions on IBRD's cash contributions to the pension plans, PEBP and PCRF, rather than
pension accounting expenses. In addition, Management has designated the income from these assets to meet the
future needs of the pension plans. As a result, PEBP and PCRF investment revenues are excluded from allocable
income and reflected in Pension Reserves within Retained Earnings (Table 11).

Externally Financed Outputs (EFO)

Under certain arrangements (such as Externally Financed Outputs), IBRD enters into agreements with donors
under which it receives grants to finance specified IBRD outputs or services. These funds may be utilized only
for the purposes specified in the agreements and are, therefore, considered restricted until IBRD has fulfilled
those purposes. Management excludes amounts arising from these arrangements from allocable income because
IBRD has no discretion over the use of the related funds. In line with this, in FY25, income of $3 million was
transferred out of Restricted Retained Earnings within Retained Earnings (Table 11). Consequently, the net
balance of these restricted funds decreased by the same amount.

RAMP

Under the Board-approved framework, RAMP fees are dedicated for the purpose of providing technical
assistance and asset management services to external clients. Due to the potential timing mismatch between fee
revenue (recognized as earned) and program expenditures (recognized when incurred), fees earned in a given
fiscal year may be used to provide services in a future fiscal year. To ensure that RAMP revenues are only used
for the delivery of RAMP services, and not allocated for other purposes, any difference between fee revenue and
expenses from RAMP included in reported net income are excluded to arrive at allocable income. Allocable
income for FY25 was adjusted for the $1 million excess of RAMP expenses over the fee revenue from RAMP
(Table 9) and is reflected in Other Reserves within Retained Earnings.

LPF1 and GFPP

LPF1 was funded by IBRD to finance eligible activities in order to incentivize solutions to address global
challenges with cross-border externalities. GFPP was funded by IBRD to provide grants to support preparation of
financed lending operations. Unutilized funds in both facilities were invested in an investment pool and recorded
at fair value in IBRD's Investment-Trading portfolio. Periodic changes in the investment value are recorded as

                                                                   22
unrealized mark-to-market gains/losses on trading portfolios and are excluded to arrive at Allocable income.
Allocable income for FY25 was adjusted for $24 million unrealized mark-to-market gains on investments related
to LPF1 and GFPP and is reflected in Other Reserves within Retained Earnings.

Unrealized mark-to-market gains (losses) on certain positions in the investments-trading portfolios, net
This adjustment applies to trades where the unrealized gains and losses on derivative forward contracts are
recorded in the Statements of Income and the underlying physical assets being purchased and sold are recorded at
amortized cost during the holding period. In these cases, the unrealized gains and losses on the forward contract
at the end of the reporting period, if any, are excluded from net income when calculating allocable income and
reflected in Restricted Retained Earnings within Retained Earnings (Table 11). As of June 30, 2025, there were
no active trades requiring adjustment.

Income Allocation and Retained Earnings
Allocable income is net income after certain adjustments (Table 9). The Governors determine the allocation of
income at the end of every fiscal year into the following categories: General reserves, Surplus, and transfers to
IDA. In making their decisions, Governors take the overall financial standing of IBRD into consideration.
Annual IDA transfer recommendations are subject to approval by the Governors as part of the net income
allocation process in accordance with IBRD's Articles. There is a Board approved formula-based approach for
determining IBRD's transfers to IDA. The approach links proposed transfers to IDA with IBRD's allocable
income for the year. Cumulative transfers to IDA, since IDA's first replenishment totaled $17.3 billion.
Allocable income in FY25 was $2,384 million ($1,849 million--FY24), and out of this, the Board approved the
allocation of $1,182 million ($834 million--FY24) to the General Reserve on August 7, 2025 (August 6,
2024--FY24), and the Board recommended to IBRD's Board of Governors a transfer of $782 million ($515
million--FY24) to IDA and $420 million ($500 million--FY24) to Surplus. Further, the Board recommended to
IBRD's Board of Governors the following transfers out of Surplus: $300 million transfer to the IBRD Trust Fund
for Gaza and West Bank, $100 million to GFPP and $20 million to LPF1 (Table 11).
As shown in Table 9, the Board recommends and the IBRD's Governors approve allocations of income, at the
end of each fiscal year, to augment reserves and support developmental activities. Therefore, reserves in the form
of Retained Earnings consist of cumulative amounts allocated to components of Retained Earnings (see Notes to
the Financial Statements, Note A: Summary of Significant Accounting and Related Policies and Note G: Board
of Governors Approved Transfers).

                                                                   23
The components of Retained Earnings, reflecting the subsequent recommended allocations of FY25 net income
by the Board are summarized below:

Table 11: Retained Earnings Composition

In millions of U.S. dollars

                                                             Cumulative Unallocated Restricted

                                Special General Pension      Fair value Net Income Retained Other

                                Reserve Reserve Reserve Surplus Adjustments (Loss) Earnings Reserves a  Total

As of June 30, 2025 . . . . .   $293  $34,058 $ 987 $ --     $1,390  $ 2,915 $ 11               $729 $40,383
Recommended:                     --      1,182 303 420          252   (2,133) (3)
Net income allocation . . .                                                                     (21)    --
Board of Governors-              --        -- -- (420)          --       300 --
                                                                                                120     --
   approved transfers
   funded from Surplus
   and other transfers c . . .

Total after recommended
   allocations . . . . . . . . . . $293 $35,240 b $1,290 $ -- $1,642 $ 1,082 $ 8 $828 $40,383

a. Comprised mainly of currency remeasurement gains/losses, unutilized portion of the IBRD Fund for
      Innovative Global Public Goods Solutions (subsequently renamed the IBRD Surplus-Funded Livable Planet
      Fund or LPF1) and the unutilized portion of the GFPP.

b. Included as a component of usable equity in Table 33.
c. A concurrent transfer is recommended to be made from Surplus to Unallocated Net Income (Loss) and/or

      Other Reserves for all transfers reported in the Statements of Income and authorized to be funded from
      Surplus.

                                                         24
                               SECTION IV: LENDING ACTIVITIES

IBRD provides financing instruments and knowledge services to creditworthy middle-income and low- income
countries, while ensuring that social, environmental, and governance considerations are taken into account.
Country teams with an understanding of each country's circumstances work with clients to tailor the mix of
instruments, products, and services. For FY26, countries with 2025 per capita Gross National Income (GNI) of
more than $1,325 are eligible for new lending from IBRD.

Through its country-based engagement, IBRD focuses on borrower countries' priorities while also taking into
consideration its corporate priorities, including addressing global challenges.

Projects and programs supported by IBRD are designed to achieve a positive social impact and undergo a
rigorous review and internal approval process, aimed at safeguarding equitable and sustainable economic growth,
that includes early screening to identify environmental and social impacts and designing mitigation actions.

Financing cycles involve identifying and appraising a project and approving and disbursing the funds. In
response to emergency situations, such as natural disasters and crises, IBRD is able to accelerate the preparation
and approval cycle.

Loan disbursements must meet the requirements set out in loan agreements. During implementation of IBRD-
supported operations, IBRD's staff review progress, monitor compliance with IBRD policies, and help resolve
any problems that may arise. The Independent Evaluation Group, an independent unit reporting directly to the
Board, evaluates the extent to which operations have met their development objectives.

All IBRD loans, are made to, or guaranteed by, member countries. IBRD may also make loans to IFC without
any guarantee. In most cases, IBRD's Board approves each loan and guarantee after appraisal of a project by
staff. Under the Multiphase Programmatic Approach, the Board may approve an overall program framework, its
financing envelope and the first appraised phase, and then authorize Management to appraise and commit
financing for later program phases.

Net Lending Commitments and Gross Disbursements

IBRD provided $40.9 billion of new net loan commitments in FY25, through 139 operations, an increase of
$3.3 billion (9%) compared to FY24.

Table 12: Net Commitments by Region

In millions of U.S. dollars

For the fiscal year ended June 30,                                                          2025 % of total 2024 % of total Variance

Eastern and Southern Africa . . . . . . . . . . . . . . . . . . . . . . . . . . .           $ 2,920   7% $ 2,914  8% $ 6
Western and Central Africa . . . . . . . . . . . . . . . . . . . . . . . . . . .                 912
East Asia and Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 2   1,725   5   (813)
Europe and Central Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            6,430
Latin America and the Caribbean . . . . . . . . . . . . . . . . . . . . . . .                10,478   16  6,788   18  (358)
Middle East and North Africa . . . . . . . . . . . . . . . . . . . . . . . . .               12,389
South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     5,166  26  9,302   25 1,176
                                                                                               2,590
                                                                                                      30  9,463   25 2,926

                                                                                                      13  4,233   11  933

                                                                                                      6   3,143   8   (553)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,885 100% $37,568 100% $3,317

                                     25
Table 13: Gross Disbursements by Region

In millions of U.S. dollars

For the fiscal year ended June 30,                                                          2025 % of total 2024 % of total Variance

Eastern and Southern Africa . . . . . . . . . . . . . . . . . . . . . . . . . .             $ 1,228   4% $ 3,126  9% $(1,898)
Western and Central Africa . . . . . . . . . . . . . . . . . . . . . . . . . . .               1,263
East Asia and Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          4,064  4   240     1   1,023
Europe and Central Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              8,056
Latin America and the Caribbean . . . . . . . . . . . . . . . . . . . . . .                    7,828  13  5,492   16 (1,428)
Middle East and North Africa . . . . . . . . . . . . . . . . . . . . . . . . .                 4,376
South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3,964  26 10,574   32 (2,518)

                                                                                                      26  6,305   19  1,523

                                                                                                      14  3,332   10  1,044

                                                                                                      13  4,381   13  (417)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,779 100% $33,450 100% $(2,671)

Lending Categories
IBRD's lending is classified in three categories: investment project financing, development policy financing, and
program-for-results (Figure 10).

Investment Project Financing (IPF)
IPF provides financing for a wide range of activities aimed at creating the physical and social infrastructure
necessary to reduce poverty and create sustainable development. IPF generally disburses over 5 to 10-years.
FY25 net IPF commitments were $17.5 billion, compared with $14.6 billion in FY24.

Development Policy Financing (DPF)
DPF supports borrowers in achieving sustainable development through programs of policy and institutional
actions. Examples of DPF projects include strengthening public financial management, improving the investment
climate, addressing bottlenecks to improve service delivery, and diversifying the economy. DPF supports reforms
through non-earmarked general budget financing. DPF provides fast-disbursing financing to help borrowers
address actual or anticipated financing requirements. FY25 net DPF commitments were $16.6 billion, compared
with $15.9 billion in FY24.

Program-for-Results (PforR)
PforR helps countries improve the design and implementation of their development programs and achieve
specific results by strengthening institutions and building capacity. PforR disburses when agreed results are
achieved and verified. Results are identified and agreed upon during the loan preparation stage. FY25 net PforR
commitments were $6.8 billion, compared with $7.1 billion in FY24.

                                         26
Figure 10: Percentage Share of Lending Categories for Annual Net Commitments

                                 In billions of U.S. dollars, except rates in percentages

% of total net commitments  100%  $30.5                 $33.1      $38.6          $37.6  $40.9
                             80%
                             60%   17%                   18%        19%            19%    16%
                                   35%                   40%        36%            42%    41%

                            40%                         42%        45%            39%    43%
                                              48%

                            20%

                            0%                          FY22       FY23           FY24   FY25
                                            FY21
                                                              Development Policy  Program-for-Results
                                    Investment Project

Currently Available Lending Products

As of June 30, 2025, 86 member countries were eligible to borrow from IBRD. See Appendix for a list of eligible
countries.

IBRD Flexible Loans (IFLs)

IFLs allow borrowers to customize their repayment terms (i.e., grace period, repayment period, and amortization
profile) to meet their debt management or project needs. The IFL previously offered two types of loan terms:
variable-spread terms and fixed-spread terms. Effective April 1, 2021, IBRD's offering of loans on fixed spread
terms as well as a related conversion feature from the variable spread terms to fixed spread terms was suspended
(see Section IX: Risk Management). As of June 30, 2025, 78% of IBRD's loans outstanding carried variable-
spread terms and 22% had fixed-spread terms. See Table 16 for details of loan terms for IFL loans.

IFLs include options to manage the currency and/or interest rate risk over the life of the loan. The outstanding
balance of loans for which currency or interest rate conversions have been exercised was $58.2 billion as of
June 30, 2025 and $52.7 billion as of June 30, 2024. IFLs may be denominated in the currency or currencies
chosen by the borrower if IBRD can efficiently intermediate in that currency or currencies. Using currency
conversions, some borrowing member countries have converted their IBRD loans into domestic currencies to
reduce their foreign currency exposure for projects or programs that do not generate foreign currency revenue.
These local currency loans may carry fixed or variable-spread terms. The balance of local currency loans
outstanding was $2.9 billion as of June 30, 2025 and $3.2 billion as of June 30, 2024, respectively. Box 1 below
shows the components of the spread on IBRD's IFLs and how these are determined.

                                                               27
Box 1: Components of Loan spread                    Subject to the Board's periodic review
                    Contractual lending spread
                          Maturity Premium

FSL Market Risk Premium *                           Set by Management based on the
    Funding Cost Margin                                              market

* This is only applicable to fixed spread loans which are not currently offered.

IBRD offers long-term financing for member countries. Since IBRD introduced maturity-based pricing in 2010,
most countries continue to choose loans with the longer maturities with a higher maturity premium, highlighting
the value of longer maturities to member countries.

Table 14: Net Commitments by Maturity                                                                                              For the fiscal year ended

In millions of U.S. dollars                                                                                                        June 30,  June 30,
                                                                                                                                     2025      2024
Maturity
                                                                                                                                   $ 826     $ 1,477
< 8 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     7,929     7,498
8-10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,250     7,020
10-12 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       7,901     4,425
12-15 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       3,269     4,086
15-18 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
>18 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14,754    12,395
Guarantee Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     956       667
Total Net Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                   $40,885 $37,568

Loans with Other Financial Terms Currently Available

In addition to IFLs with standard terms, IBRD offers loans with a deferred drawdown option, Special
Development Policy Loans (SDPLs), loan-related derivatives, and loans to IFC (Box 2).

                                                28
Box 2: Loans with Other Financial Terms as of June 30, 2025

Loans with Other Financial

Terms                       Description

                               The DPF with a Deferred Drawdown Option (DPF DDO) gives borrowers the
                               flexibility to rapidly obtain the financing they require. For example, such funds could
                               be needed owing to a shortfall in resources caused by unfavorable economic events,
                               such as declines in growth or unfavorable shifts in commodity prices or terms of
                               trade. The Catastrophe Risk DDO (CAT DDO) enables borrowers to access
                               immediate funding to respond rapidly in the wake of a natural disaster and/or public
                               health emergency caused by a biological event. The Investment Project Financing
                               DDO (IPF DDO) provides clients with contingent financing for specific investment
Loans with a Deferred project expenditures to increase financial preparedness for certain crisis response
Drawdown Option needs. Under the DPF DDO, borrowers may defer disbursement for up to three years,
                               renewable for an additional three years. Under the IPF DDO, borrowers may defer
                               disbursement for up to five years, renewable for an additional three years. The CAT
                               DDO has a revolving feature and the three-year drawdown period may be renewed up
                               to four times, for a total maximum drawdown period of 15 years (Table 16). As of
                               June 30, 2025, the amount of DDOs disbursed and outstanding was $9.5 billion
                               (compared to $9.5 billion as of June 30, 2024). The undisbursed amount of effective
                               DDOs was $1.1 billion (compared to $0.5 billion a year earlier), and the undisbursed
                               amount of disbursing DDOs was $1.0 billion (compared to $0.7 billion as of June 30,
                               2024).

Special Development         SDPLs support structural and social reforms by creditworthy borrowers that face a
Policy Loans (SDPLs)        possible financial crisis or are already in a crisis and have extraordinary and urgent
                            external financing needs. There were no amounts outstanding as of June 30, 2025 and
                            June 30, 2024. IBRD made no new SDPL commitments in either FY25 or FY24.

Loan-Related                IBRD assists its borrowers with access to risk management tools by offering
Derivatives                 derivative instruments, including currency and interest rate swaps and interest rate
                            caps and collars, associated with their loans. These instruments may be executed
Loans with IFC              either under a master derivatives agreement, which substantially conforms to industry
                            standards, or under individually negotiated agreements. Under these arrangements,
                            IBRD passes through the market cost of these instruments to its borrowers. The
                            balance of loans outstanding for which borrowers had entered into currency or
                            interest rate derivative transactions under a master derivatives agreement with IBRD
                            was $7.0 billion as of June 30, 2025 and $8.9 billion as of June 30, 2024.

                            IBRD provides loans to IFC in connection with the release of a member's National
                            Currency Paid-In Capital (NCPIC) to IBRD (See Section VIII: Capital Activities for
                            explanation of NCPIC). There were no loans outstanding as of June 30, 2025 and
                            June 30, 2024.

Lending Terms Applicable to IBRD Products

The current pricing structure classifies member countries into four pricing groups, based on income and other
factors, and relates the maturity premium to the exemptions, discounts or surcharges applicable to each pricing
group (Table 15).

                                         29
Table 15: Country Pricing Group and Maturity Premium (in Basis Points)

Country pricing group                                Description                                       Maturity
                                                                                                      Premium a d

A                      Blends b, small states, countries in fragile and conflict-affected situations  0-50 c

                       (FCS), recent IDA graduates, and CRDC-eligible countries. These countries

                       are exempt from the maturity premium increase regardless of their income

                       levels.

B                      Countries below or equal to GDI (Graduation Discussion Income) which do        0-70

                       not qualify for an exemption listed in Group A.

C                      Countries above-GDI, but below high-income status and which do not             0-90

                       qualify for an exemption listed in Group A.

D                      Countries with high income status and which do not qualify for an              5-115

                       exemption listed in Group A.

a. Based on the weighted average maturity of the loan, borrower's income, and other factors, approved by the
      Board and reviewed annually.

b. Countries eligible for IDA and IBRD loans.
c. Member countries in group A are exempt from the maturity premium increase applicable from July 1, 2018.
d. For IBRD loans with a final maturity of up to 7 years, there is a maturity premium discount of 20bps. This

      discount is applied to the overall lending spread.

                                                     30
Table 16: Loan Terms Available During Financial Year Ended June 30, 2025
Basis points, unless otherwise noted

Final maturity f                                                   IBRD Flexible Loan (IFL) a b     Special Development Policy Loans
Maximum weighted average maturity                                     Variable-spread Terms                          (SDPL)
Reference market rate
                                                                          35 years c                           10 years
                                                                          20 years c                           7.5 years
                                                            Market-based variable rate index     Market-based variable rate index

Spread                                                                         50                min. 200
      Contractual lending spread f . . . . . .                               0-115 d                --
      Maturity premium f . . . . . . . . . . . . .             Actual average funding cost
      Funding cost margin . . . . . . . . . . . .           incurred during the preceding six-      --
                                                                        month period

Charges

Front-end fee . . . . . . . . . . . . . . . . . .               25                               100

Late service charge on principal

payments received after 30 days

of due date e . . . . . . . . . . . . . . . . .                 50                               --

Commitment fee g . . . . . . . . . . . . . .                    25                               25

Other financial terms for DDOs h

Front-end fee . . . . . . . . . . . . . . . . . . . . . .   DPF DDO and IPF DDO                  CAT DDO
Renewal fee . . . . . . . . . . . . . . . . . . . . . . .
Stand-by fee . . . . . . . . . . . . . . . . . . . . . . .             25                           50
Commitment fee . . . . . . . . . . . . . . . . . . .                  --                            25
                                                                       50                          --
                                                                      --                           --

a. There is an implicit floor of zero on the overall interest rate in IBRD's loans.
b. Effective April 1, 2021, IBRD suspended offering loans with fixed spread terms.
c. For some projects addressing global challenges with cross border externalities, the maximum loan maturity

      is extended to up to 50 years and the maximum weighted average maturity is extended to up to 25 years.
d. Based on the weighted average maturity of the loan and on country pricing group.
e. See Box 6 in Section IX: Risk Management for a discussion of overdue payments.
f. IBRD offers a 7-year final maturity loan with a 20bps maturity discount.
g. Effective October 15, 2024, the Board approved a grace period of 4 years for IPF and PforR commitment fees.
h. The financial terms not listed separately for DDOs are the same as those presented above for IFLs.

Climate Resilient Debt Clause (CRDC)

IBRD offers CRDCs for eligible new and existing loans (with minimum remaining maturity of five years), for
certain borrowers3. CRDCs allow eligible borrowing countries to defer payments of principal and/or interest (and
other loan charges) for up to two years after an eligible event. After the deferral period, the borrower will restart
payments of the deferred amounts according to a modified amortization schedule that maintains the original
weighted average maturity of the loan and does not extend the final maturity date. The eligible events when the
clause was first offered were tropical cyclones and earthquakes. In October 2024, the Board approved an
extension of the covered events to include all natural catastrophes, including droughts, floods, and public health
emergencies caused by a biological event. Total IBRD loans outstanding as of June 30, 2025, for the 24 countries
(including Blend countries) that are eligible to adopt the clause for CRDCs was $6.0 billion.

3 Eligible borrowers are IBRD Small State Economies, members of the Small States Forum, and Small Island
      Developing States as defined by the United Nations.

                                                            31
Loans Outstanding
As of June 30, 2025, 78% of loans outstanding were denominated in U.S. dollars, 20% were denominated in
euros and 2% were denominated in other currencies, before the use of derivatives. The interest and currency
profile of loans outstanding after the use of derivatives for risk management purposes is discussed under Market
Risk in Section IX: Risk Management.

Table 17 illustrates a breakdown of IBRD's loans outstanding by interest rate structure.

Table 17: Loans Outstanding by Interest Rate Structure, Excluding Derivatives

In millions of U.S. dollars, except for ratios

Product  Total                          June 30, 2025    Total   % of       Product     Total                             June 30, 2024     Total     % of
terms                                          Of which          Total       terms                                                Of which            Total

                                       % of reference                                                                    % of reference
                                       Total rate is                                                                     Total rate is

Fixed Spread                           22% Fixed $ 30,799              Fixed Spread     $ 63,170 24% Fixed $ 31,110 12%
   Loans . . . . . . . . . . $ 63,118        Variable 32,319     11% Loans                                    Variable 32,060 12
                                                                 11
Variable Spread                        78 Fixed          26,078                         200,020 76 Fixed                                    20,362 8
   Loans . . . . . . . . . . 219,972                                   Variable Spread
                                                                  9 Loans
                                       Variable 193,894          69                                                                Variable 179,658 68

Total . . . . . . . . . . . . $283,090 100%              $283,090 100%                  $263,190 100%                                       $263,190 100%

Table 18 below illustrates a breakdown of IBRD's undisbursed balances by financial loan terms.

Table 18: Undisbursed Balances by Loan Terms
In millions of U.S. dollars, except ratios which are in percentages

As of June 30,                                                                                                              2025    %          2024    %

Variable Spread terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            $86,643    94%     $77,294    91%
Fixed Spread terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              5,702     6        7,764     9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            100%               100%
                                                                                                                         $92,345            $85,058

                                                                        32
                     SECTION V: OTHER DEVELOPMENT ACTIVITIES

IBRD continues to deliver value to its client countries through its knowledge services, convening power, and
capacity to implement solutions that address global issues where coordinated action is critical.

IBRD also assists clients with designing financial products and structuring transactions to help mobilize
resources for development projects and mitigate the financial effects of market volatility and disasters.

Other financial products and services provided to borrowing member countries, and to affiliated and non-
affiliated organizations, include financial guarantees, grants, externally-funded activities, and advisory services
and analytics.

Guarantees

Guarantees provided

IBRD offers project-based and policy-based guarantees for priority projects and programs in member countries.
IBRD also offers guarantees for enclave operations. Project-based guarantees are provided to mobilize private
financing for projects; they are also used to mitigate projects' payment- and performance- related risks. Policy-
based guarantees are provided to mobilize private financing for sovereigns or sub- sovereigns. IBRD's
guarantees are partial and are intended to provide only the coverage necessary to obtain the required private
financing, considering country, market and, if appropriate, project circumstances. All guarantees require a
sovereign counter-guarantee and indemnity, comparable to the requirement of a sovereign guarantee for IBRD
lending to sub-sovereign and non-sovereign borrowers (Box 3). On July 1, 2024, the WBG Guarantee Platform,
maintained by MIGA, was launched to bring together products and experts from the World Bank, IFC, and
MIGA and aims to boost WBG guarantee issuances for all entities.

Box 3: Types of Guarantees Provided by IBRD

Guarantee             Description

  Project-based       Two types of project-based guarantees are offered:
  guarantees          1. Loan guarantees: these cover loan-related debt service defaults caused by the

  Policy-based              government's failure to meet specific payment and/or performance obligations
  guarantees                arising from contract, law or regulation, in relation to a project. Loan guarantees
                            include coverage for debt service defaults on: (i) commercial debt, normally for
  Guarantees for            a private sector project where the cause of debt service default is specifically
  enclave operations        covered by IBRD's guarantee; and, (ii) a specific portion of commercial debt
                            irrespective of the cause of such default, normally for a public-sector project.

                      2. Payment guarantees: These cover payment default on non-loan related
                            government payment obligations to private entities and foreign public entities
                            arising from contract, law or regulation.

                      These cover debt service default, irrespective of the cause of such default, on a
                      specific portion of commercial debt owed by national or sub national government and
                      associated with the supported government's program of policy and institutional
                      actions.

                      IBRD extends guarantees for projects in IDA-only member countries that (i) are
                      expected to generate large economic benefits with significant developmental impact
                      in the member country; and (ii) cannot be fully financed out of the country's own
                      resources, IDA resources, or other concessional financing. The provision of IBRD
                      support to enclave operations is subject to credit enhancement features that
                      adequately mitigate IBRD's credit risk.

                                             33
In addition, IBRD has entered into the following arrangements, which are treated as financial guarantees under
U.S. GAAP:

IBRD has a Multilateral Development Bank (MDB) Exposure Exchange Agreement (EEA) with the African
Development Bank (AfDB) and the Inter-American Development Bank (IADB). Under this EEA, each MDB
exchanged credit risk exposure of a reference portfolio supported by underlying loans to borrowing member
countries. For each MDB, EEAs through diversification benefits, help reduce credit risk at the portfolio level;
improve the risk-weighted capital ratios especially by addressing exposure concentration concerns; and create
lending headroom for individual borrowing countries where MDBs may be constrained. The EEA involved the
receipt of a guarantee and the provision of a guarantee against nonpayment in the reference portfolio by each
MDB to the other. The guarantee received and the guarantee provided are two separate transactions: (a) a receipt
of an asset for the right to be indemnified and receive risk coverage (recoverable asset) and (b) the provision of a
financial guarantee, respectively (see Notes to the Financial Statements, Note D: Loans and Other Exposures).

Table 19: Exposure Exchange Agreements

As of June 30,                                                                                                 2025                 2024

                                                                                                        Guarantee Guarantee Guarantee Guarantee
                                                                                                         Received Provided Received Provided

Exposure Exchange Agreement                                                                             2,021        2,021  2,021         2,021
      IADB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1,588        1,588  1,588         1,588
      AfDB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      MIGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    --           --        2          --

Total notional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,609 $3,609 $3,611 $3,609

IBRD's exposure on its guarantees was $7.4 billion as of June 30, 2025 compared to $7.1 billion as of June 30,
2024 (Table 20). Exposure is measured by discounting each guaranteed amount from its next call date.

Table 20: Guarantees Exposure

In million U.S. dollars

As of June 30,                                                                                                              2025          2024

Guarantees (project, policy and enclave) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,818 $3,488
Exposure Exchange Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,609 3,609

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,427 $7,097

Guarantees received
As part of its development activities, IBRD also receives third-party guarantees to enhance the credit quality of
its loan portfolio and increase its lending capacity.

Credit enhancement arrangements: As of June 30, 2025, IBRD had $11.3 billion of outstanding loans under
which bilateral guarantees were received from highly rated member countries or other Multilateral Development
Banks ($8.9 billion as of June 30, 2024).

In addition, as of June 30, 2025, IBRD received total notional value of $1.1 billion portfolio guarantees from 2
highly rated member countries, under its new Portfolio Guarantee Platform (PGP).

The bilateral guarantees and guarantees under the PGP serve as credit enhancements and reduce IBRD's internal
risk capital requirements. Guarantees that are contractually attached to the loan reduce the exposure at risk in
computing the loan loss provision. Guarantees that are not contractually attached to the loan (including the PGP),
are recorded as a recoverable asset and included in Other assets on the Balance Sheet (see Notes to the Financial
Statements, Note D--Loans and Other Exposures).

                                                                   34
IBRD has also received other forms of credit enhancements for loans outstanding totaling $2.5 billion as of
June 30, 2025 ($2.0 billion as of June 30, 2024), that protect IBRD against the risk of loss on certain loans in
IBRD's portfolio. These credit enhancements are accounted for as derivatives at fair value and are included in
Other assets--Miscellaneous on IBRD's Balance Sheet as they do not meet the accounting definition of
guarantees.

Table 21: Credit Enhancements Received

In millions of U.S. dollars

As of June 30,                                                                                                                                        2025      2024

Bi-lateral Guarantees Received                                                                                                                          185       200
Borrowing Country With Loan Guarantees Brazil                                                                                                           138       142
Egypt, Arab Republic of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     350       350
Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           324       359
Iraq . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        333       367
Jordan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          123       155
Morocco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             200       220
Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         9,685     7,057
Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                   $11,338   $ 8,850
Total Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Portfolio Guarantees Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,070                          --

Other Credit Enhancements Received                                                                                                                 1,000     1,000
Borrowing Country With Other Credit Enhancements                                                                                                   1,500     1,016
India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500 $ 2,016

Total Guarantees and Credit Enhancements Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,908 $10,866

Grant Making Facilities
Grant Making Facilities (GMFs) are funded by IBRD's contributions to specific trust funds and are
complementary to IBRD's work. IBRD deployed $17 million under this program in FY25 ($17 million in FY24).
These amounts are reflected in Contributions to Special Programs in IBRD's Statements of Income, after IDA's
share is determined in accordance with the cost sharing ratio.

Externally-Funded Activities
Mobilization of external funds from third-party partners includes trust funds. Additional external funds include
reimbursable funds and revenues from fee-based services to member countries, which are related to EFOs
(Externally Financed Outputs), RAS (Reimbursable Advisory Services), and other financial products and
services, including RAMP.

Trust Funds
Trust Funds receive money from donors that provide development solutions that serve member recipients and
donors. Trust funded partnerships often serve as a platform for IBRD and the partners to access WBG's diverse
technical and financial resources, and achieve development goals whose complexity, scale, and scope exceed any
individual partner's capabilities. IBRD's roles and responsibilities in managing trust funds depend on the type of
fund, outlined as follows:

        Bank-executed activities for trust funds: IBRD, alone or jointly with one or more of its affiliated
            organizations, manages the funds and implements the activities financed. These trust funds support

                                                                   35
            IBRD's work program. IBRD disbursed $604 million in FY25 ($612 million in FY24) of trust fund
            program funds, which was included in Non-interest expenses, Administrative in IBRD's Statements of
            Income with corresponding revenue included in Non-interest revenue, Revenue from externally funded
            activities (Table 6).

        Recipient-executed activities for trust funds: Funds are provided to a third party, normally in the form
            of project grant financing, and are supervised by IBRD.

        Financial Intermediary Funds (FIFs): IBRD, as trustee, administrator, or treasury manager, offers
            specific administrative or financial services with a limited operational role. Arrangements include the
            administration of debt service trust funds, fiscal agency funds and other more specialized limited fund
            management roles.

IBRD uses a cost recovery framework for trust funds, to recover the costs of performing agreed roles in
administering trust funds, and is guided by principles of transparency, fairness, simplification, standardization,
predictability and consistent treatment across all trust fund donors.

Management continues to implement measures to improve planning, support sustainability and enhance
alignment of external funds with mission priorities through greater use of umbrella trust fund programs.

During FY25, IBRD's share of fees from trust fund administration was $91 million ($99 million in FY24), which
is included in Revenue from externally funded activities (Table 3) on the Reported basis. On an Allocable
income basis, this amount is part of Net non-interest expenses (Table 6). See Notes to Financial Statements, Note
L: Trust Funds Administration and Other Services. The decrease in fees was mainly driven by lower
disbursements to the trust funds.

Reimbursable Advisory Services (RAS)

While most of IBRD's advisory and analytical work is financed by its own budget or donor contributions (e.g.,
Trust Funds), clients may also pay for services. IBRD offers technical assistance and other advisory services to
its member countries, in connection with, and independent of, lending operations. Available services include, for
example, assigning qualified professionals to survey developmental opportunities in member countries; analyzing
member countries fiscal, economic, and developmental environments; helping members devise coordinated
development programs; and improving their asset and liability management techniques. In FY25, IBRD earned
revenue of $49 million ($47 million in FY24) from RAS, which is included in Revenue from externally funded
activities (Table 3) on the Reported basis. On an Allocable income basis, this amount is part of Net non-interest
expenses (Table 6).

Externally Financed Outputs (EFOs)

IBRD offers donors the ability to contribute to specific projects and programs. EFO contributions are recorded as
restricted revenue when received because they are grants for contractually specified purposes. In FY25, IBRD
had $5 million of restricted revenue, compared with $8 million in FY24, which are included in Net non-interest
expenses  reported basis in Table 6.

Restrictions are released once the funds are used for the purposes specified by donors. In FY25, there was a
release of $8 million ($8 million in FY24).

Other Financial Products and Services

Managing Financial Risks for Clients

IBRD helps member countries build resilience by facilitating access to risk management solutions to mitigate the
financial effects of currency, interest rate, and commodity price volatility, disasters, and extreme weather events.

                                                                   36
Box 4 below lists some financial solutions and disaster risk financing instruments IBRD offers:

Box 4: Financing Instruments

                Hedging Transactions      Disaster Risk Financing

                  Interest Rate           Catastrophe Derivatives and Bonds
                     Currency                  Insurance and Reinsurance
                                                Regional Pooling Facilities
                Commodity Price

IBRD also intermediates the following risk management transactions for clients:

        Affiliated Organization: To assist IDA with its asset/liability management IBRD executed currency
            forward contracts on its behalf. There were no open trades as of June 30, 2025.

        Unaffiliated Organization: To assist the International Finance Facility for Immunization (IFFIm) with
            its asset/liability management strategy, IBRD executes currency and interest rate swaps on its behalf. In
            addition, IBRD, as Treasury Manager, is a counterparty to IFFIm and enters into offsetting swaps with
            market counterparties. During FY25, IBRD did not execute any swaps under this agreement.

(See Section IX: Risk Management, for a detailed discussion of IBRD's risk mitigation of these derivative
transactions).

Asset Management

The Reserves Advisory and Management Partnership (RAMP) provides services that build clients' capacity to
support the sound management of their official sector assets. Clients include central banks, sovereign wealth
funds, national pension funds, and supranational organizations. RAMP helps clients upgrade their asset
management capabilities, including portfolio and risk management, operational infrastructure, and human
resources capacity. Under most of these arrangements, IBRD is responsible for managing a portion of the
institution's assets and, in return, receives a fee based on the average value of the portfolio managed (Table 22).
The fees earned are used to provide training and capacity-building services. In addition to RAMP, IBRD invests
and manages investments on behalf of IDA, MIGA, and trust funds; those investments are not included in
IBRD's assets.

Table 22: RAMP - Assets and Revenues

In millions of U.S. dollars

As of June 30,                                                                                   2025  2024

Assets managed under RAMP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,772 $24,851
Revenue from RAMP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15 $ 14

As noted in the discussion of Trust Fund Activities above, IBRD, alone or jointly with one or more of its
affiliated organizations, administers funds restricted for specific uses on the donors' behalf. This administration
is governed by agreements with donors, who include members, their agencies and other entities. These funds are

                                      37
held in trust and are not included on IBRD's Balance Sheets, except for $575 million of undisbursed third-party
contributions made to trust funds executed by IBRD, individually or with other affiliated organizations, which
are recognized on the Balance Sheets. The funds held in trust by IBRD as administrator and trustee totaled
$64.3 billion in FY25, of which $0.5 billion ($0.1 billion in FY24) relates to IBRD's own contributions to these
trust funds (Table 23).

Table 23: Funds Held in Trust by IBRD

In millions of U.S dollars

As of June 30,                                                                                                                        2025      2024

Bank-executed activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 243     $ 258
Jointly executed with affiliated organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1,059     1,085
Recipient-executed activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        6,035     3,330
Financial intermediary funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     48,478    29,826
Execution not yet assigned a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       8,468     7,807

Total fiduciary assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $64,283 $42,306

a. These represent assets held in trust for which the determination as to the type of execution is yet to be
      finalized.

                                       38
                            SECTION VI: INVESTMENT ACTIVITIES

Investments held by IBRD are designated as trading and used mostly for liquidity purposes. As of June 30, 2025,
Investments - Trading totaled $102.7 billion ($82.7 billion as of June 30, 2024). See Note C--Investments in the
Notes to the Financial Statements.

Liquid Asset Portfolio

Funds raised through IBRD's borrowing activities that have not yet been deployed for lending are held in the
liquid asset portfolio to provide liquidity for IBRD's operations. The portfolio is managed with the goal of
ensuring sufficient cash flows to meet all of IBRD's financial commitments. While it seeks a reasonable return
on this portfolio, IBRD restricts its liquid assets to high-quality investments, consistent with its investment
objective of prioritizing principal protection over yield. Liquid assets are managed conservatively and are
primarily held against disruptions in IBRD's access to capital markets.

IBRD's liquid assets are held mainly in highly rated, fixed-income instruments (see Box 7: Eligibility Criteria for
IBRD's Investments) and include the following:

        Government, agency, and corporate obligations

        Time deposits and other unconditional obligations of banks and financial institutions

        Asset-backed securities (including agency mortgage-backed securities)

        Currency, interest rate and other risk management derivatives

        Exchange-traded options and futures

Table 24: Liquid Asset Portfolio by Asset Class

In millions of U.S. dollars, except ratios which are in percentages

As of June 30,                                                           2025  %  2024  %

Liquid asset portfolio
      Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,279 55% $45,984 58%
      Government, agency and corporate obligations . . . . . . . . . . . . . . . . . . . . . . 41,626 43 30,701 39
      Asset-backed Securities & Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,138 2 2,107 3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $96,043 100%$78,792 100%

IBRD keeps liquidity volumes above a Prudential Minimum which is defined by its financial policies as 80% of
the twelve-month Target Liquidity Level. The twelve-month Target Liquidity Level is calculated before the end
of each fiscal year based on Management's estimates of projected net loan disbursements approved at the time of
projection and debt-service for the upcoming fiscal year. This twelve-month estimate becomes the target for the
upcoming fiscal year and the Prudential Minimum is 80% of this target (see Section IX: Risk Management, for
details of how IBRD manages liquidity risk).

The liquid asset portfolio is composed largely of assets denominated in, or swapped into, U.S. dollars, with net
exposure to short-term interest rates after derivatives. The portfolio has an average duration of less than three
months, and the debt funding these liquid assets has a similar currency and duration profile. This is a direct result
of IBRD's exchange-rate and interest-rate-risk-management policies (see Section IX: Risk Management),
combined with appropriate investment guidelines (Box 7).

                                                                     39
The maturity profile of IBRD's liquid asset portfolio reflects a high degree of liquidity. As of June 30, 2025,
$77.9 billion (approximately 81% of total volume) was due to mature within six months, of which $24.3 billion
was expected to mature within one month.

During FY25, IBRD's total return on the liquid asset portfolio was 5.19%, a marginal decrease compared to
FY24 total return of 5.81%, and consistent with the decreasing interest rate environment. In addition to
monitoring gross investment returns relative to their benchmarks, IBRD also monitors overall earnings from the
investment portfolio, net of funding costs. In FY25, IBRD had $65 million of revenue, net of funding costs on the
investment portfolio as discussed in Section III: Financial Results.

Other Investments

In addition to the liquid asset portfolio, the investment portfolio also includes holdings related to the PEBP,
PCRF, and other investments (see Note C--Investments). Table 25 below summarizes the net carrying value of
other investments:

Table 25: Net Carrying Value of Other Investments

In millions of U.S. dollars

As of June 30,                                         2025  2024

PEBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,252 $2,939
PCRF and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,803 949

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,055 $3,888

                                                   40
                            SECTION VII: BORROWING ACTIVITIES

IBRD has been issuing bonds in the international capital markets since 1947. The proceeds of these bonds
support IBRD's lending operations which are aimed at promoting sustainable development for IBRD's
borrowing member countries.

Borrowings

IBRD borrows at attractive rates underpinned by its strong financial profile and shareholder support that together
are the basis for its triple-A credit rating. As a result of its financial strength and triple-A credit rating, IBRD is
recognized as a premier borrower and its bonds and notes are viewed as a high credit quality investment in the
global capital markets.

IBRD uses the proceeds to finance development activities in creditworthy middle-income and low-income
countries eligible to borrow from IBRD at market-based rates. Funding raised in any given year is used for
IBRD's operations, including loan disbursements, replacement of maturing debt, and prefunding for lending
activities. IBRD determines its funding requirements based on a three-year rolling horizon and funds about
one-third of the projected amount in the current fiscal year.

As discussed in Section I: Overview, IBRD uses currency and interest rate derivatives in connection with its
borrowings for asset and liability management purposes. New medium and long-term funding is swapped into
variable-rate U.S. dollar instruments, with conversion to other currencies carried out subsequently, as needed.
This is in accordance with loan funding requirements, so that IBRD can minimize interest rate and currency risk.
IBRD also uses derivatives to manage the re-pricing risks between loans and borrowings. Further discussion on
how IBRD manages this risk is included in Section IX: Risk Management.

IBRD issues short-term debt (maturing in one year or less), and medium- and long-term debt (with a maturity
greater than one year). In FY25, IBRD raised a total of $64.5 billion of medium- and long-term debt (Table 28).
From time to time, IBRD exercises the call option in its callable bond issues; it may also repurchase its debt to
meet other operational or strategic needs such as providing liquidity to its investors (Table 28).

As of June 30, 2025, the borrowings totaled $306.2 billion, $44.4 billion higher than June 30, 2024 (see Note E:
Borrowings in the Notes to the Financial Statements). The increase was primarily due to net medium-and long-
term debt issuances during the year (Table 28).

Table 26 illustrates the impact of derivatives on the currency composition of IBRD's borrowing portfolio.

Table 26: Effect of Derivatives on Currency Composition of the Borrowing Portfolio  June 30, 2025

In millions of U.S. dollars, except ratios which are in percentages

                                                                                                                    Borrowings excluding Borrowings including

As of June 30, 2025                                                                                                 derivatives  derivatives

US Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       62%           86%
                                                                                                                                  14
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16           --

Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    22

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   100%         100%

As of June 30, 2025, IBRD's total borrowings, after the effects of derivatives, carried variable rates with a
weighted average cost of 4.4% (5.5% as of June 30, 2024). The decrease in the weighted average cost from the
prior year reflects the decrease in the short-term market interest rates during the year. This also resulted in a
decrease in IBRD's weighted average loan rates, which are also based on IBRD's funding cost. IBRD's lending
spread was therefore not impacted by the decrease in short-term interest rates (Figure 2).

                     41
Short-Term Borrowings

Table 27 summarizes IBRD's short-term borrowings, which mainly include discount notes, securities lent or sold
under securities lending and repurchase agreements, and other short-term borrowings.

Discount Notes

IBRD's short-term borrowings consist mainly of discount notes issued in U.S. dollars. These borrowings have a
weighted average maturity of approximately 136 days.

Securities Lent or Sold under Repurchase Agreements

These short-term borrowings are secured mainly by highly-rated collateral in the form of securities, including
government-issued debt, and have an average maturity of less than 30 days.

Other Short-Term Borrowings
Other short-term borrowings are mostly money market instruments that have maturities of one year or less.

Table 27: Short-Term Borrowings

In millions of U.S. dollars, except rates which are in percentages

As of June 30,                                                                                                            2025  2024

Discount notes a                                                                                                          $13,166 $10,374
Average daily balance during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      4.72% 5.39%
Weighted-average rate during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Securities lent or sold under repurchase agreements b
Average monthly balance during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 449 $ 723
Weighted-average rate during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.88% 1.24%

Other short-term borrowings a
Average daily balance during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 105 $ 44
Weighted-average rate during the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.69% 5.44%

a. At amortized cost which approximates fair value
b. Excludes securities related to PEBP and PCRF.

Medium- and Long-Term Borrowings

In FY25, medium- and long-term debt raised directly by IBRD in the capital markets amounted to $64.0 billion
with an average maturity to first call of 5.5 years (Table 28). The increase in medium- and long-term debt raised
in FY25 is primarily due to higher debt servicing and refinancing requirements.

In FY25, IBRD started issuing debt in the form of perpetual hybrid capital. As of June 30, 2025, the amount
raised was $0.5 billion.

                                                                    42
Table 28: Funding Operations Indicators

In millions of U.S. dollars, except maturities which are in years

For the fiscal year ended June 30,                                                                                                 2025                       2024

Issuances a                                                                                                                        $64,545                    $52,380
Medium- and long-term funding raised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 5.5                        5.9
Average maturity to first call date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        8.0                        6.8
Average maturity to contractual final maturity b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maturities                                                                                                                         $33,879                    $29,786
Medium- and long-term funding matured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  6.4                        4.4
Average maturity of debt matured b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Called/Repurchased                                                                                                                 $ 4,676                    $ 1,960
Medium- and long-term funding called/repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a. Expected life of IBRD's bonds are generally between first call date and the contractual final maturity.
b. Excludes hybrid capital that has no defined maturity period.

Table 29: Maturity Profile of Medium Long-Term Debt

In millions of U.S. dollars

                                                                                   As of June 30, 2025

                                    Less than 1                    1 to 2  2 to 3  3 to 4  4 to 5                                  Due After 5                Total
                                        year                       years   years   years   years                                      years

Medium and Long-Term Debt . . . . $34,173 $37,482 $36,816 $32,710 $39,117 $112,874 $293,172

As shown below, 74% of IBRD's medium-and long-term borrowings issued during the year were in U.S. dollars:

Table 30: Medium and Long-Term Borrowings Raised by Currency during the year, Excluding
Derivatives

In millions of U.S. dollars, except ratios which are in percentages

As of June 30,                                                                                                                                                2025 2024

US Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     74% 61%
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10 14
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16 25

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%100%

                                                                   43
                              SECTION VIII: CAPITAL ACTIVITIES

Capital Structure

Principal Shareholders and Voting Power

As of June 30, 2025, IBRD had 189 member countries, with the top six accounting for 40% of the total voting
power (Figure 11). The United States is IBRD's largest shareholder, with 15.79% of total voting power.
Accordingly, it also has the largest share of IBRD's uncalled capital, $50,627 million, or 17% of total uncalled
capital.

As of June 30, 2025, member countries holding a credit rating of AA and above accounted for 34% of the total
voting power.

Subscribed Capital

Total subscribed capital is comprised of paid-in capital and uncalled subscribed capital. See Statement of
Subscriptions to Capital Stock and Voting Power in IBRD's Financial Statements for balances by country.

                Figure 11: Voting Power of Top Six Members as of June 30, 2025

                   United States                                                                             15.79%
                             Japan
                             China                                            7.00%
                                                                          5.85%
                         Germany                                      4.16%
                            France                                   3.82%
                                                                     3.82%
                United Kingdom
                                       0%  5%                            10%         15%                        20%

Table 31: Breakdown of IBRD Subscribed Capital

In millions of U.S. dollars, except ratios which are in percentages

As of June 30,                                                                                               %       2025  2024 Variance

Subscribed capital                                                                                            7% $ 22,911 $ 22,452 $ 459
      Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  93% 303,924 300,620 3,304
      Uncalled Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%$326,835 $323,072 $3,763

Uncalled Subscribed Capital

As of June 30, 2025, the total uncalled portion of subscriptions was $303,924 million. The amount may be called
only when required to meet IBRD's obligations for funds borrowed or loans guaranteed and is, thus, not available
for use by IBRD when making loans. Of this amount, $42,456 million was restricted pursuant to resolutions of
the Board of Governors (though such conditions are not required by IBRD's Articles). While these resolutions
are not legally binding on future Board of Governors, they do record an understanding among members that this
amount will not be called for use by IBRD in its lending activities or for administrative purposes.

                                                                     44
No call has ever been made on IBRD's capital. Any such calls are required to be uniform, but the obligations of
IBRD's members to make payment on such calls are independent of one another. If the amount received on a call
is insufficient to meet the obligations of IBRD for which the call is made, IBRD has the right to make further
calls until the amounts received are sufficient to meet such obligations. On any such call or calls, however, no
member is required to pay more than the unpaid balance of its capital subscription.

Under the Bretton Woods Agreements Act and other U.S. legislation, the Secretary of the U.S. Treasury is
permitted to pay approximately $7,663 million of the uncalled portion of the subscription of the United States, if
called for use by IBRD, without need for further congressional action.

The balance of the uncalled portion of the U.S. subscription, $42,964 million, has been authorized but not
appropriated by the U.S. Congress. Further action by the U.S. Congress is required to enable the Secretary of the
U.S. Treasury to pay any portion of this balance. The General Counsel of the U.S. Treasury has rendered an
opinion that the entire uncalled portion of the U.S. subscription is an obligation backed by the full faith and credit
of the U.S., notwithstanding that congressional appropriations have not been obtained with respect to certain
portions of the subscription.

Capital Increases
In October 2018, the Governors approved a new GCI and SCI as part of a capital package that includes
institutional and financial reforms designed to ensure long-term financial sustainability. The capital increases
would result in additional subscribed capital of up to $60.1 billion, with $7.5 billion of paid-in capital and
$52.6 billion of callable capital. The subscription period for the GCI and SCI ends on October 1, 2025.

Paid-In Capital
Paid-in capital has two components:

        The U.S. dollar portion, which is freely available for use by IBRD.
        National Currency Paid-In Capital (NCPIC) portion, usage of which is subject to certain restrictions

            under IBRD's Articles and is subject to Maintenance-Of-Value (MOV) requirements. For additional
            details see the Notes to the Financial Statements, Note A: Summary of Significant Accounting and
            Related Policies.

Usable Paid-in Capital
Usable paid-in capital represents the portion of paid-in capital that is available to support IBRD's risk bearing
capacity and includes all U.S. dollar paid-in capital, as well as NCPIC for which use restrictions have been lifted
(referred to as released NCPIC). The adjustments made to paid-in capital to arrive at usable paid-in capital are
provided in Table 32.

The $736 million increase in usable paid-in capital during FY25 was primarily due to the receipt of $333 million
for GCI and $126 million for SCI during FY25.

                                                                   45
Table 32: Usable Paid-in Capital

In millions of U.S dollars

As of June 30,                                                                                                               2025   2024 Variance

Paid-in Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $22,911 $22,452  $459
Deferred amounts to maintain value of currency holdings a . . . . . . . . . . . . . . . . . . .                                  (298) (558)   260
Adjustments for unreleased NCPIC:
                                                                                                                             (61) (66)            5
      Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Nonnegotiable, noninterest-bearing demand obligations on . . . . . . . . . . . . . . .                                 (313)  (310)        (3)
      account of subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            (325)  (337)        12
      Receivable amounts to maintain value of currency holdings . . . . . . . . . . . . . .
      MOV payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            5    23

Total Adjustments for unreleased NCPIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (694) (711) 17

Usable paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,919 $21,183 $736

a. The MOV (Maintenance-Of-Value) on released National Currency Paid-In Capital (NCPIC) is considered
      to be deferred.

Usable Equity
Usable equity represents the amount of equity that is available to support IBRD's lending operations. Usable
equity is central to the three frameworks IBRD uses to manage its capital adequacy, credit risk, and equity
earnings. These frameworks, described in Section IX: Risk Management, are:

        Strategic Capital Adequacy Framework
        Credit Risk and Loan Loss Provisioning Framework
        Other ALM Framework

See Table 33 for the components of Usable Equity and see Table 34 for a reconciliation of Total Equity and
Usable Equity.

                                  46
                                SECTION IX: RISK MANAGEMENT
Risk Governance

IBRD's risk management processes and practices evolve to reflect changes in activities in response to market,
credit, product, operational, and other developments. The Board, particularly the Audit Committee (AC),
periodically reviews trends in IBRD's risk profiles and performance, and any major developments in risk
management policies and controls.

Management believes that effective risk management is critical for its overall operations. Accordingly, the risk
management governance structure is designed to manage the principal risks IBRD assumes in its activities, and
supports Management in its oversight function, particularly in coordinating different aspects of risk management
and in connection with risks that are common across functional areas.

IBRD's risk governance structure is built on the "three lines model" where:
        Business units, with support from specialized functions, are responsible for directly managing risks in
            their respective functional areas;
        The Vice President and WBG Chief Risk Officer (CRO) provides direction, challenge, and oversight
            over risk management practices; and
        Internal Audit provides independent assurance and advice on the effectiveness of risk management.

IBRD's risk management process comprises of risk identification, assessment, response and risk monitoring and
reporting. IBRD has policies and procedures under which risk owners are responsible for identifying, assessing,
responding to, monitoring and reporting risks.

Risk Oversight and Coverage
Financial and Operational Risk Management
The CRO (Vice President and WBG Chief Risk Officer) oversees both financial and operational risks. These
risks include (i) country credit risks in the core sovereign-lending business, (ii) market and counterparty risks,
including liquidity and model risks, and (iii) operational risks relating to people, processes and systems, or from
external events. In addition, the CRO works closely with IFC, MIGA, and IDA's Management, to review,
measure, aggregate, and report on risks, and share best practices across the WBG. The CRO also helps enhance
cooperation between the entities and facilitates knowledge sharing in the risk management function.

The following three departments report directly to the CRO:
Credit Risk Department

        Identifies, measures, monitors, and manages country credit risk faced by IBRD. By agreement with the
            Board, the individual country credit risk ratings are not shared with the Board and are not made public.

        Assesses loan portfolio risk, determines the adequacy of provisions for losses on loans and other
            exposures, and monitors borrowers that are vulnerable to crises in the near term. These reviews are
            taken into account when determining the overall country programs and lending operations, and they are
            included in the assessment of IBRD's capital adequacy.

        Reviews proposed new financial products for any implications for country credit risk.

Market and Counterparty Risk Department
        Responsible for market, liquidity, and counterparty credit risk oversight, assessment, and reporting. It does
            these in coordination with IBRD's financial managers who are responsible for the day-to-day execution of
            trades for the liquid asset and derivative portfolios, within applicable policy and guideline limits.

                                                                   47
 Ensures effective oversight, including: (i) maintaining sound credit assessments, (ii) addressing
    transaction and product risk issues, (iii) providing an independent review function, (iv) monitoring
    market and counterparty risk in the investment, borrowing and client operation portfolios, and (v) the
    model risk for financial and capital models. It also provides reports to the Audit Committee and the
    Board on the extent and nature of risks, risk management, and oversight.

 Responsible for validation of market data and models used for fair valuation of financial instruments.
    Undertakes model verification to ensure robust implementation of the models for fair-valued products.

Operational Risk Department

        Provides direction and oversight for operational risk activities by business function.

        Key operational risk management responsibilities include: (i) administering the Operational Risk
            Committee (ORC) for IBRD, (ii) implementing the operational risk management framework which is
            aligned with Basel principles and provides direction to business unit partners to ensure consistent
            application, (iii) assisting and guiding business units in identifying and prioritizing significant
            operational risks and enabling monitoring and reporting of risks through suitable metrics (or risk
            indicators), (iv) helping identify emerging risks and trends through monitoring of internal and external
            risk events, (v) supporting risk response and mitigating actions, and preparing a corporate Operational
            Risk Report for review and discussion by the ORC.

        Responsible for the oversight of the enterprise risk, operational risk, business continuity, operational
            resilience, corporate insurance, and data privacy functions.

The risk of IBRD's operations not meeting their development outcomes (development outcome risk) in IBRD's
lending activities is monitored at the corporate level by Operations Policy and Country Services (OPCS). Where
fraud and corruption risks may impact IBRD-financed projects, OPCS, the regions and practice groups, and the
Integrity Vice Presidency jointly address such issues.

Risk Committees
            Figure 12: Management Risk Committee Structure for Financial and Operational Risks

Financial Risk                                              Operational Risk

                FRC                          ALCO                         ERC
Finance and Risk Committee                                  Enterprise Risk Committee
                            Asset and Liability Management
            Chair: MDCFO                  Committee                   Chair: MDCAO
                                          Chair: MDCFO

              NBC                                                          ORC
New Business Committee                                      Operational Risk Committee

Financial Risk Committees:

The Finance and Risk Committee (FRC), a Vice President level committee, provides a high-level governance
structure for decisions that may have financial risks. The FRC was created under the authority of the Managing
Director and WBG Chief Financial Officer (MDCFO) to approve, clear, or discuss: (a) risk policy and procedure
documents related to financial integrity, income sustainability and balance sheet strength, and (b) issues and new
business initiatives with policy implications related to IBRD's financial risks, including country credit, market,
counterparty, liquidity and model risks, and operational risks related to the finance business functions. The FRC

                                                                   48
helps to integrate individual components of finance and risk management activities by building on mechanisms
and processes already in place and provides a forum for discussing and communicating significant risk related
issues. The FRC meets regularly to discuss the financial performance, new products and services, and risk
management of IBRD.

New Business Committee (NBC) is a standing subcommittee of the FRC. The NBC provides advice, guidance
and recommendations to the FRC, by performing due diligence over new financial products or services to ensure
that Management has a full understanding of the rationale, costs, risks and rewards of the product or service
being considered.

Asset and Liability Management Committee (ALCO), a Vice President-level committee chaired by the
MDCFO, provides a high-level forum to ensure prudent balance sheet management of IBRD by: a) monitoring its
financial positions and ALM activities for compliance with its respective guidelines, policies and procedures,
including borrowing and investment activities; b) identifying and providing recommendations on emerging ALM
issues for IBRD, as well as those related to capital, balance-sheet planning, and financial sustainability and c)
serving as a reviewing and recommending body for ongoing decisions as part of implementing the ALM policies
and procedures of IBRD, including those that impact lending rates and net income.

Operational Risk Committees:

The Enterprise Risk Committee (ERC) is a Vice President-level committee chaired by the Managing Director
and Chief Administrative Officer (MDCAO) that oversees IBRD's non-financial risks through reviewing,
discussing and/or formulating proposed policies, procedures, directives, guidance, and other matters requested by
its members. ERC's scope comprises of: a) operational risk, including business continuity, corporate security,
cyber security, and IT service continuity; b) enterprise risk; c) Integrity Vice Presidency (INT) and Ethics and
Business Conduct (EBC) policies and methodologies; d) shared services; and e) any other matters brought by the
MDCAO. The ERC leverages existing risk management mechanisms that are in place to provide a corporate
view of operational and non-financial risks.

Operational Risk Committee (ORC) is the main governance committee for operational risk and provides a
mechanism for an integrated review and response across IBRD units on operational risks associated with people,
processes, and systems, including business continuity, and recognizing that business units remain responsible for
managing operational risks. The Committee's key responsibilities include monitoring significant operational risk
matters and events on a quarterly basis to ensure that appropriate risk-response measures are taken and reviewing
and concluding on IBRD's overall operational risk profile. The ORC is chaired by the CROVP and escalates
significant risks and decisions to the FRC and ERC.

Box 5: Summary of IBRD's Specific Risk Categories

Types of Risk                How the Risk is Managed

Credit Risk                  IBRD's credit-risk-bearing capacity and individual country exposure limits
   Country Credit Risk       Counterparty credit limits and collateral
   Counterparty Credit Risk

Market Risk                  Interest rate derivatives to match the sensitivity of assets and liabilities
   Interest Rate Risk
   Exchange Rate Risk        Currency derivatives to align the currency composition of assets and
                             liabilities
   Liquidity Risk
Operational Risk             Prudential minimum liquidity level
                             Risk assessment and monitoring of key risk indicators and internal and
                             external operational risk events

                             49
Other Risk Councils

The Financial Risk Council and Non-Financial Risk Council facilitate regular coordination and collaboration
across WBG entities in financial and non-financial risk functions, respectively. These councils, chaired by the
MDCFO and MDCAO, respectively, meet regularly to identify opportunities for collaboration across the risk
functions that serve to enhance the effectiveness of each of the risk functions while respecting the fiduciary
obligations of each entity and considering the different mandates, clients, products, and business models. They
also provide a common forum for the systematic exchange of information and encourage joint reporting of risks
across the entities to form an overall picture on risk and
for the purposes of information sharing, identifying interdependencies, connections, and concentrations of risk.

Management of IBRD's Risks

IBRD assumes financial risks in order to achieve its development and strategic objectives. IBRD's financial risk
management framework is designed to enable and support the institution in achieving its goals in a financially
sustainable manner. IBRD manages credit, market and operational risks for its financial activities, which include
lending, borrowing and investing (Box 5). The primary financial risk to IBRD is the country credit risk inherent
in its loan portfolio. IBRD is also exposed to risks in its liquid asset and derivative portfolios, where the major
risks are interest rate, exchange rate, commercial counterparty credit, and liquidity risks. IBRD's operational risk
management framework is based on a structured and uniform approach to identify, assess and monitor key
operational risks across business units.

In an effort to maximize IBRD's capacity to lend to member countries for development purposes, IBRD limits its
exposure to market and counterparty credit risks. In addition, to ensure that the financial risks associated with its
loans and other exposures do not exceed its risk-bearing capacity, IBRD uses a strategic capital adequacy
framework as a key medium-term capital planning tool.

Capital Adequacy

IBRD holds capital to cover the credit, market and operational risks inherent in its operating activities and
financial assets. Country credit risk is the most substantive risk covered by IBRD's equity.

IBRD's capital adequacy is the degree to which its equity is sufficient to withstand unexpected shocks. IBRD's
Board monitors IBRD's capital adequacy within a strategic capital adequacy framework and uses the
Equity-to-Loans ratio as a key indicator of capital adequacy. The framework seeks to ensure that IBRD's equity
is aligned with the financial risk associated with its loans and other exposures over a medium-term
capital-planning horizon.

As shown in Table 33, IBRD's Equity-to-Loans ratio increased by 0.1% from 21.5% as of June 30, 2024 to
21.6% as of June 30, 2025, primarily due to the increase in usable equity, mainly driven by the increase in
proposed transfer to general reserve out of the FY25 allocable income, which outpaced the increase in total loan
exposure, primarily due to the increase in outstanding loans. In October 2024, as part of the WBG evolution
process, the Board approved establishing the new Framework of Restoration Measures (FRM) for capital
adequacy, which further strengthens the protection for IBRD's triple-A rating. The FRM includes a set of capital
adequacy-related metrics, along with indicative thresholds, as well as restoration measures. Following the
establishment of the FRM, the Board approved a reduction in the policy minimum Equity-to-Loans ratio from
19% to 18% based on a review of IBRD's capital adequacy framework, which became effective immediately
after the Board approval. The minimum Equity-to-Loans ratio policy continues to support IBRD's triple-A rating
and long-term financial sustainability.

In October 2024, the Board also approved the offer of Enhanced Callable Capital (ECC), another shareholder
support instrument to expand IBRD's financing capacity. Shareholders can convert a portion of their existing

                                                                   50
callable capital to the enhanced terms so that it could be called earlier in the event that IBRD were to face an
imminent threat of a rating downgrade, but had not yet reached a point where it was at risk of defaulting to its
bondholders, which is when a call on the current form of callable capital will be made. The ECC conversion is on
a voluntary basis and upon bilateral agreement between the shareholder and IBRD. There were no signed ECC
agreements as of June 30, 2025.

In FY25, IBRD signed bilateral agreements for hybrid capital with 8 member countries for a total notional value
of $773 million, expected to be settled over the next 4 years. As of June 30, 2025, $482 million has been settled
and reported in the balance sheet. For capital adequacy purposes, hybrid capital is a component of usable equity
in the equity-to-loans ratio (Table 33) in accordance with IBRD's financial policies.

Portfolio guarantees are risk management instruments that support additional financing capacity for IBRD. On
IBRD's Balance Sheet, effective portfolio guarantees are recorded in Other assets measured based on the
expected credit losses on the underlying portfolio. As of June 30, 2025, portfolio guarantee agreements with 2
member countries of $1.1 billion notional were effective. For capital adequacy
measures, effective portfolio guarantees are leveraged reductions to loan exposures in the equity-to-loans ratio to
capture their first-loss and portfolio-wide loss-absorption features.

                                               Figure 13: Equity-to-Loans Ratio

26%

24%
22%

20%
18%

16%

     Jun-  Jun-                   Jun-  Jun-            Jun-

     21    22                     23    24              25

           Equity-to-Loans ratio        Policy minimum

                 51
Table 33: Equity-to-Loans Ratio

In millions of U.S. dollars

As of June 30,                                                               2025      2024      Total     Variance     Due to
                                                                                                                      Translation
                                                                                                           Due to     Adjustment
                                                                                                          Activities

Usable paid-in capital . . . . . . . . . . . . . . . . . . . . . . .         $ 21,919 $ 21,183 $ 736 $ 470            $ 266
Special reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                --
General reserve a . . . . . . . . . . . . . . . . . . . . . . . . . . .      293       293       --       --             --
Cumulative translation adjustment b . . . . . . . . . . . .                                                              902
Hybrid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     35,240 34,058 1,182 1,182                      5
Other adjustments c . . . . . . . . . . . . . . . . . . . . . . . . .                                                     (79)
                                                                             (224) (1,126) 902            --

                                                                             482       --        482      477

                                                                             168       247       (79) --

Equity (usable equity) (Table 34) . . . . . . . . . . . . . . . . . $ 57,878 $ 54,655 $ 3,223 $ 2,129 $1,094

Loan exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . .       $283,090 $263,190 $19,900 $14,795        $5,105
Adjustments to reflect third-party guarantees
                                                                             (13,620)  (10,658)  (2,962)  (2,901)         (61)
   received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (4,280)      --    (4,280)  (4,280)        --
Adjustment for portfolio guarantees received d . . . .                         3,818                                     206
Present value of guarantees provided . . . . . . . . . . .                     2,105     3,488      330      124
Effective but undisbursed DDOs . . . . . . . . . . . . . . .                  (2,813)    1,261      844      806           38
Relevant accumulated provisions . . . . . . . . . . . . . .                     (681)   (2,942)     129      201          (72)
Deferred loan income . . . . . . . . . . . . . . . . . . . . . . .               366      (594)     (87)     (72)         (15)
Other exposures and adjustments, net . . . . . . . . . . .                                          (11)     (11)        --
                                                                                           377
                                                                                                                      $5,201
Loans (total exposure) . . . . . . . . . . . . . . . . . . . . . . . . . . $267,985 $254,122 $13,863 $ 8,662

Equity-to-Loans Ratio . . . . . . . . . . . . . . . . . . . . . . . . . .    21.6% 21.5%

a. Includes transfer to the General Reserve, which for FY25 (FY24) was approved by the Board on August 7,
      2025 (August 6, 2024).

b. Excludes cumulative translation amounts associated with the unrealized mark-to-market gains/losses on
      non-trading portfolios, net.

c. Includes cumulative remeasurement gains on non-functional currencies of $216 million for FY25
      ($295 million gains for FY24).

d. The adjustment for portfolio guarantees received is management's estimate of the benefit of the PGP which
      covers losses on the entire portfolio (first loss), and also the counterparty credit risk.

In FY25, IBRD received $0.5 billion of paid-in capital subscribed under the 2018 General and Selective Capital
Increases (GCI and SCI), bringing the cumulative amounts received to $6.5 billion, representing 86% of the total
amount expected over the subscription period. In line with IBRD's currency management policy, exchange rate
movements during the year did not have an impact on IBRD's Equity-to-Loans ratio. Under the currency
management policy, to minimize exchange rate risk, IBRD matches its borrowing obligations in any one
currency (after derivatives) with assets in the same currency. In addition, IBRD periodically undertakes currency
conversions to align the currency composition of its equity with that of its outstanding loans, across major
currencies.

Table 34 provides a reconciliation of IBRD's total equity (Table 2) to the usable equity amounts presented and
discussed in the MD&A (Table 33) as of June 30, 2025.

                                 52
Table 34: Usable Equity

In millions of U.S. dollars

For the fiscal years ended June 30,                                                                                                            2025     2024

Total Equity (Table 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           $72,012 $63,484
Proposed transfer to general reserve (Table 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less--adjustments to retained earnings (Table 11):                                                                                             1,182    834

      Unallocated Net Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  (2,915)  (2,513)
      Pension Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            (987)    (681)
      Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     --      (100)
      Cumulative fair value adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       (1,390)  (1,103)
      Restricted retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 (729)     (11)
                                                                                                                                                  (11)    (358)

Total adjustments to retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,032) (4,766)

Less--adjustments to accumulated other comprehensive income:                                                                                   (9,654)  (3,954)
      Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               (224)  (1,126)
      Cumulative translation adjustment (Table 33) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                               (9,878)  (5,080)
Total adjustments to accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . .

Other adjustments:                                                                                                                             482      --
      Hybrid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Cumulative remeasurement gains on non-functional currencies . . . . . . . . . . . . . . . . . . .                                        216      295
      Cumulative PEBP income adjustment a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Adjustments for unreleased National Currency Paid-In Capital (NCPIC) . . . . . . . . . . . .                                             (48) (48)

                                                                                                                                               (56) (64)

Total other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              594      183

Usable Equity (Table 33) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,878 54,655

a. Reflects a legacy treatment to exclude income earned on PEBP assets, as this income is intended to support
      PEBP liabilities only.

Credit Risk

IBRD faces two types of credit risk: country credit risk and counterparty credit risk. Country credit risk is the risk
of loss due to a country not meeting its contractual obligations, and counterparty credit risk is the risk of loss
attributable to a counterparty not honoring its contractual obligations. IBRD is exposed to commercial as well as
non-commercial counterparty credit risk.

Country Credit Risk

IBRD's mandate is to take only sovereign credit risk in its lending activities. Within country credit risk, three
distinct types of risks can be identified: idiosyncratic risk, correlation risk, and concentration risk. Idiosyncratic
risk is the risk of an individual borrowing country's exposure falling into nonaccrual status for country-specific
reasons (such as policy slippage or political instability). Correlation risk is the risk that exposure to two or more
borrowing countries will fall into nonaccrual in response to common global or regional economic, political, or
financial developments. Concentration risk is the risk resulting from having a large portion of exposure
outstanding which, if the exposure fell into nonaccrual, would result in IBRD's financial health being excessively
impaired. Concentration risk needs to be evaluated both on a stand-alone basis (exposure of one borrowing
country) and when taking into account correlation when more than one borrowing country is affected by a
common event, such that when combined, IBRD's exposure to a common risk is elevated.

To estimate idiosyncratic risk and stand-alone concentration risk, the Credit Risk Department looks at IBRD's
exposure to each borrowing country and each borrowing country's expected default to IBRD as captured in its

                                                                   53
credit rating. Credit ratings and default probabilities reflect country economic, financial and political
circumstances, and also consider Environmental, Social and Governance (ESG) risk factors. For correlation risk,
the Credit Risk Department models the potential common factors that could impact borrowing countries
simultaneously. The existence of correlation increases the likelihood of large nonaccrual events, as most of these
nonaccrual events involve the joint default of two or more obligors in the portfolio.

IBRD manages country credit risk by using individual country exposure limits and takes into account factors
such as population size and the economic situation of the country. In addition, IBRD conducts stress tests of the
effects of changes in market variables and of potential geopolitical events on its portfolio to complement its
capital adequacy framework.

Portfolio Concentration Risk

Portfolio concentration risk, which arises when a small group of borrowing countries account for a large share of
loans outstanding, is a key concern for IBRD. It is carefully managed for each borrowing country, in part,
through an exposure limit for the aggregate balance of loans outstanding, the present value of guarantees, and the
undisbursed portion of Deferred Drawdown Options (DDOs) that have become effective, among other potential
exposures. Under current guidelines, IBRD's exposure to a single borrowing country is restricted to the lower of
an Equitable Access Limit (EAL) or the Single Borrower Limit (SBL).

Equitable Access Limit (EAL) and Statutory Lending Limit (SLL)

The EAL is equal to 10% of IBRD's SLL. Under IBRD's Articles, as applied, total loans outstanding, including
participations in loans and callable guarantees, may not exceed the sum of unimpaired subscribed capital,
reserves and surplus, referred to as the SLL. As of June 30, 2025, the SLL totaled $361.2 billion. The outstanding
loans and callable guarantees totaled $286.9 billion, or 79% of the SLL. The EAL was $36.1 billion, as of
June 30, 2025. The SLL was originally intended to ensure that sufficient resources are available to meet IBRD's
obligations to bondholders in the highly unlikely event of substantial and historically unprecedented losses on
IBRD's loans. IBRD has subsequently adopted an internal risk-based capital adequacy framework based on risk
management practices that have evolved significantly since the time the SLL was established. The SLL is not a
risk-based metric, and could constrain IBRD's lending capacity below levels that are consistent with its
risk-based framework. Accordingly, IBRD is in the process of amending the Articles to remove the SLL. The
Board of Governors approved a Resolution to remove the SLL on July 10, 2023. IBRD is now going through the
final stage of the amendment process, which requires acceptance by three-fifths of the members having
eighty-five percent of the voting power.

Single Borrower Limit (SBL)

The SBL amount is established, in part, by assessing its impact on overall portfolio risk relative to equity. The
SBL caps the maximum exposure to IBRD's most creditworthy and largest borrowing countries in terms of
population and economic size. The SBL framework reflects a dual-SBL system, with the SBL for countries
above the Graduation Discussion Income (GDI) threshold set lower than the SBL for countries below GDI. GDI
is the level of GNI (Gross National Income) per capita of a member country above which graduation from IBRD
starts being discussed. The GDI threshold was $7,895 as of July 1, 2024. Under the dual-SBL system, the SBL
for FY25 was $30.9 billion for highly creditworthy countries below the GDI and $22.2 billion for highly
creditworthy countries above the GDI. On July 22, 2025, the Board approved the FY26 SBL of $31.7 billion and
$22.6 billion for countries below and above GDI, respectively.

As of June 30, 2025, the ten countries with the highest exposures accounted for about 57% of IBRD's total
exposure (Figure 14). IBRD's largest exposure to a single borrowing country was $23.1 billion on June 30, 2025.
Monitoring these exposures relative to the limit, however, requires consideration of the repayment profiles of
existing loans, as well as disbursement profiles and projected new loans and guarantees.

                                                                   54
Sustainable Annual Lending Level (SALL)

The "Financial Sustainability Framework" (FSF) requires IBRD to align its annual lending levels to its long-term
sustainable capacity, while retaining flexibility to respond to crises by maintaining a crisis buffer.

The SALL is the maximum annual commitment level sustainable, in real terms, for 10 years in line with IBRD's
prudential policies. Under the FSF, the Board annually approves a crisis buffer. The crisis buffer- adjusted
sustainable annual lending level (SALL-Adj) serves as the upper bound for regular lending in the next year. For
the fiscal year ending June 30, 2025, the Board had approved a crisis buffer of $10.0 billion and a SALL-Adj of
$39.0 billion. On June 23, 2025, the Board approved a crisis buffer of $10.0 billion for FY26. The corresponding
SALL-Adj, which will be the core lending ceiling for FY26, is $42.0 billion. The total lending capacity also
includes additional capacity from the Global Solutions Accelerator Platform (GSAP) as part of the Framework
for Financial Incentives (FFI), as well as additional operations supported by highly rated bilateral guarantees and
other balance sheet optimization measures.

                                  Figure 14: Country Exposures as of June 30, 2025

                                                          In billions of U.S. dollars

                                            Top Ten Country Exposures a

                        India                                                                              23.1
                  Indonesia                                                              20.0
                   Colombia                                              17.2
                Philippines                                      15.8
                                                              15.2
                       Brazil                           14.2
                       China                          13.9
                     Trkiye                          13.8
                     Mexico                    12.5
                  Argentina                    12.5
Egypt, Arab Republic of

                               0  2  4  6  8 10 12 14 16 18 20 22 24

a. Exposure includes loans outstanding and guarantees provided and are net of guarantees received.

As of June 30, 2025, IBRD's loans outstanding to Ukraine were $16.9 billion, and guarantees provided to
Ukraine were $0.5 billion. Guarantees received from third parties for the benefit of Ukraine were $11.2 billion.

Credit-Risk-Bearing Capacity

Management uses risk models to estimate the size of a potential nonaccrual shock that IBRD could face over the
next three years at a given confidence level. The model-estimated nonaccrual shock is a single measure of the
credit quality of the portfolio that combines the following:

        IBRD's country-credit-risk ratings and their associated expected risk of default;

        Covariance risks;

        The outstanding loan's distribution across risk rating categories; and

        The exposure concentration.

The shock estimated by this risk model is used in IBRD's capital adequacy testing to determine the impact of
potential nonaccrual events on equity and income earning capacity.

                                           55
Expected Losses, Overdue Payments, and Non-Performing Loans

The loan loss provision is calculated by taking into account IBRD's total estimated exposure, the Expected
Default Frequency (EDF), i.e. probability of default, and the assumed loss in the event of default. Expected
losses inherent in the loan portfolio attributable to country credit risk are covered by the accumulated provision
for losses on loans and other exposures, while unexpected losses owing to country credit risk are covered by
equity (see Notes to the Financial Statements, Note A: Summary of Significant Accounting and Related Policies
and Note D: Loans and Other Exposures).

When a borrower fails to make payments due to IBRD on any principal, interest, or other charges, IBRD may
suspend disbursements immediately on all loans to that borrower. IBRD's current practice is to exercise this
option using a graduated approach (Box 6). These practices also apply to member countries eligible to borrow
from both IBRD and IDA, and whose payments on IDA loans may become overdue. It is IBRD's practice not to
reschedule interest or principal payments on its loans or participate in debt rescheduling agreements with respect
to its loans. As of June 30, 2025, there were no principal or interest amounts on loans in accrual status, that were
overdue by more than three months.

As of June 30, 2025, IBRD had $283.1 billion of loans outstanding, of which 0.5% were in nonaccrual status, all
related to Zimbabwe and Belarus. IBRD's accumulated provision for losses on loans and other exposures was
$3.0 billion, which represents a provisioning rate of less than 1% of the underlying exposures ($3.0 billion as of
June 30, 2024, less than 1% of the underlying exposures).

During the year, IBRD received $2 million ($4 million in FY24) from borrowers in non-accrual status as
payments towards principal amount overdue. Accordingly, none of these amounts were recognized in the FY25
Statement of Income ($4 million recognized as interest in the FY24 Statement of Income). The exposure to
Zimbabwe was $425 million as of June 30, 2025, compared with $426 million as of June 30, 2024. The exposure
to Belarus was $1,012 million as of June 30, 2025, compared with $984 million as of June 30, 2024.

During the year, no loans to any borrowing country were placed in nonaccrual status or restored to accrual status.

Box 6: Treatment of Overdue Payments

                 Where the borrower is the member country, no new loans to the member country, or to any other
                 borrower in the country, will be presented to the Board for approval, nor will any previously
                 approved loan be signed, until payments for all amounts 30 days overdue or longer have been
                 received. Where the borrower is not the member country, no new loans to that borrower will be
                 signed or approved. In either case, the borrower will lose its eligibility for any waiver of interest
Overdue by charges in effect at that time for loans signed before May 16, 2007, and those loans signed
30 days between May 16, 2007, and September 27, 2007, if the borrowers elected not to convert the terms
                 of their loans to the pricing terms effective September 27, 2007. For loans with the pricing terms
                 applicable from May 16, 2007, an overdue interest penalty will be charged at a rate of 50 basis
                 points on the overdue principal. That is, if an overdue amount remains unpaid for a period of 30
                 days, then the borrower will pay a higher interest rate (Reference rate + spread) plus 50 basis
                 points on the overdue principal amount until the overdue amount is fully paid.

                 In addition to the provisions cited above for payments overdue by 30 days, to avoid proceeding
                 further on the notification process leading to suspension of disbursements, the country as borrower
Overdue by or guarantor and all borrowers in the country must pay not only all payments overdue by 30 days
45 days or more, but also all payments due regardless of the number of days since they have fallen due.
                 Where the borrower is not the member country, no new loans to, or guaranteed by, the member
                 country, will be signed or approved. Additionally, all borrowers in the country will lose eligibility
                 for any waivers of interest in effect at the time.

                                                                   56
             In addition to the suspension of approval for new loans and signing of previously approved loans,
Overdue disbursements on all loans to, or guaranteed by, the member country are suspended until all overdue
by 60 amounts are paid. This policy applies even when the borrower is not the member country. Under
days exceptional circumstances, disbursements can be made to a member country upon the Board's

             approval.

             In addition to the suspension of disbursements on all loans to, or guaranteed by, the member country,
             all loans made to or guaranteed by a member of IBRD are placed in nonaccrual status, unless IBRD's
Overdue management determines that the overdue amount will be collected in the immediate future. Unpaid
by more interest and other charges accrued but not yet paid on loans outstanding are deducted from the
than six revenue for the current period. Interest and other charges on nonaccruing exposures are included in
months revenue only to the extent that payments have been received by IBRD. A decision on the restoration
             of accrual status is made upon arrears clearance. If collectability risk is considered to be particularly
             high at the time of arrears clearance, the member's exposures may not automatically emerge from
             nonaccrual status until a suitable period of payment performance has passed.

Counterparty Credit Risk

IBRD is exposed to commercial and non-commercial counterparty credit risk.

Commercial Counterparty Credit Risk

Commercial counterparty credit risk is the risk that counterparties fail to meet their payment obligations under
the terms of the contract or other financial instruments. Effective management of counterparty credit risk is vital
to the success of IBRD's funding, investment, and asset/liability management activities. The monitoring and
management of these risks is continuous as the market environment evolves.

IBRD mitigates the counterparty credit risk from its investment and derivative holdings through the credit
approval process, the use of collateral agreements and risk limits, and other monitoring procedures. The credit
approval process involves evaluating counterparty and product-specific creditworthiness, assigning internal
credit ratings and limits, and determining the risk profile of specific transactions. Credit limits are set and
monitored throughout the year. Counterparty exposure is updated daily, considering the current market values of
assets held, estimates of potential future movements of exposure for derivative instruments, and related
counterparty collateral agreements, where collateral posting requirements are based on thresholds driven by
public credit ratings. Collateral held includes cash and highly rated liquid investment securities. Commercial
credit risk management includes ESG related assessments in the approval and monitoring of higher exposure
counterparties for the liquid asset portfolio and for derivative counterparties. In addition, third-party ESG scores
of the liquid asset portfolio and derivative exposures are monitored.

IBRD's liquid asset investment portfolio consists mostly of sovereign government bonds, debt instruments issued
by sovereign government agencies, corporates and bank time deposits. More than half of these investments are
with issuers and counterparties rated triple-A and AA (Table 35).

Derivative Instruments

In the normal course of its business, IBRD enters into various derivative instruments to manage foreign exchange
and interest rate risks. These derivatives are used mainly to meet the financial needs of IBRD borrowers and to
manage the institution's exposure to fluctuations in interest and exchange rates. These transactions are conducted
with other financial institutions and, by their nature, entail commercial counterparty credit risk.

While the volume of derivative activity can be measured by the contracted notional value of derivatives, notional
value is not an accurate measure of credit or market risk. IBRD uses the estimated replacement cost of the
derivative instrument, or potential future exposure to measure counterparty credit risk with these trading partners.

                                                                   57
Under IBRD's collateral arrangements, IBRD receives collateral when mark-to-market exposure is greater than
the ratings based collateral threshold. As of June 30, 2025, IBRD had received collateral of cash and securities
totaling $0.5 billion.

IBRD is not required to post collateral under its derivative agreements as long as it maintains a triple-A credit
rating. (For the contractual value, notional amounts, related credit risk exposure amounts, and the amount IBRD
would be required to post in the event of a downgrade, see Notes to Financial Statements, Note F: Derivative
Instruments).

Investment Securities

The Board-approved General Investment Authorization provides the basic authority for IBRD to invest its liquid
assets. Furthermore, all investment activities are conducted in accordance with a more detailed set of Investment
Guidelines. The Investment Guidelines are approved by the MDCFO and implemented by the Treasurer. These
Investment Guidelines set out detailed trading and operational rules, including instruments eligible for
investments, and establish risk parameters relative to benchmarks. These include an overall consultative loss
limit and duration deviation, specifying concentration limits on counterparties and instrument classes, as well as
clear lines of responsibility for risk monitoring and compliance. Credit risk is controlled by applying eligibility
criteria (Box 7).

The overall market risk of the investment portfolio is subject to a consultative loss limit to reflect a level of
tolerance for the risk of underperforming the benchmark in any fiscal year. IBRD has procedures in place to
monitor performance against this limit and potential risks, and it takes appropriate actions if the limit is reached.
All investments are subject to additional conditions specified by the Chief Risk Officer, as deemed necessary.

IBRD's exposure to futures and options and resale agreements is marginal. For futures and options, IBRD
generally closes out open positions prior to expiration. Futures are settled on a daily basis. In addition, IBRD
monitors the fair value of resale securities received and, if necessary, closes out transactions and enters into new
repriced transactions.

Management has broadened its universe of investment assets in an effort to achieve greater diversification in the
portfolio and better risk-adjusted investment performance. This exposure is monitored by the Market and
Counterparty Risk Department.

Box 7: Eligibility Criteria for IBRD's Investments a

Instrument Securities        Description

Sovereigns                   IBRD may only invest in obligations issued or unconditionally guaranteed by
                             governments of member countries with a minimum credit rating of AA-.
                             However, no rating is required if government obligations are denominated in
                             the national currency of the issuer.

Agencies                     IBRD may invest only in obligations issued by an agency or instrumentality of
                             a government of a member country, a multilateral organization, or any other
Corporates and asset-backed  official entity (other than the government of a member country), with a
securities                   minimum credit rating of AA-.

                             IBRD may only invest in securities with a triple-A credit rating.

Time deposits b              IBRD may only invest in time deposits issued or guaranteed by financial
                             institutions, whose senior debt securities are rated at least A-.

                                                      58
Instrument Securities    Description

Commercial Paper         IBRD may only invest in short-term borrowings (less than 190 days) from
                         commercial banks, corporates, and financial institutions with at least two
Securities lending, and  Prime-1 ratings.
borrowing, repurchases,
resales, and reverse     IBRD may engage in securities lending against adequate collateral,
repurchases              repurchases and reverse repurchases, against adequate margin protection, of
                         the securities described under the sovereigns, agencies, and corporates and
                         asset-backed security categories.

Collateral Assets        IBRD may engage in collateralized forward transactions, such as swap,
                         repurchase, resale, securities lending, or equivalent transactions that involve
                         certain underlying assets not independently eligible for investment. In each
                         case, adequate margin protection needs to be received.

a. All investments are subject to approval by the Market and Counterparty Risk Department and must appear
      on the "Approved List" created by the department.

b. Time deposits include certificates of deposit, bankers' acceptances, and other obligations issued or
      unconditionally guaranteed by banks or other financial institutions.

Commercial Counterparty Credit Risk Exposure

As a result of IBRD's use of collateral arrangements for swap transactions, its residual commercial counterparty
credit risk is concentrated in the investment portfolio, in instruments issued by sovereign governments and
non-sovereign holdings (including agencies, corporates, and asset-backed securities) (Table 35).

Table 35: Commercial Credit Exposure, Net of Collateral Held, by Counterparty Rating

In millions of U.S. dollars

                                                                                          June 30, 2025

                                                                             Investments

Counterparty Rating a                                                    Sovereigns                           Net Swap                          % of
                                                                                     Non-Sovereigns Exposure            Total Exposure Total

AAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $  8,334 $          12,252 $  --$                 20,586 21%
AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6,499            49,688    114                 56,301 56
A ...................................                                    7,524            15,541    146                 23,211 23
BBB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               --
BB or lower/unrated . . . . . . . . . . . . . . . . . . . .                   3                34   --                       37 *
                                                                           --                   8                             8*

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,360 $ 77,523 $ 260 $ 100,143 100%

                                                                         59
                                                                                          June 30, 2024

                                                                             Investments

Counterparty Rating a                                                    Sovereigns                           Net Swap                          % of
                                                                                     Non-Sovereigns Exposure            Total Exposure Total

AAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $  9,583 $           8,844 $  --$                 18,427 23%
AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6,778            36,481     54                 43,313 54
A ...................................                                    7,240            11,505    131                 18,876 23
BBB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               --
BB or lower/unrated . . . . . . . . . . . . . . . . . . . .                   4                28   --                       32 *
                                                                           --                   7                             7*

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,605 $ 56,865 $ 185 $ 80,655 100%

a. Average rating is calculated using available ratings from the three major rating agencies; however, if
      ratings are not available from each of the three rating agencies, IBRD uses the average of the ratings
      available from any of such rating agencies or a single rating to the extent that an instrument or issuer (as
      applicable) is rated by only one rating agency.

* Indicates percentage less than 0.5%.

IBRD's overall commercial counterparty credit exposure, net of collateral held, was $100.1 billion as of June 30,
2025. As shown on Table 35, the credit quality of IBRD's portfolio remains concentrated in the upper end of the
credit spectrum, with 77% of the portfolio rated AA or above and the remaining portfolio primarily rated A. The
A-rated counterparties primarily consisted of sovereigns and financial institutions, which include collateralized
swap exposures and short-term deposits.

Non-Commercial Counterparty Credit Risk

In addition to its derivative transactions with commercial counterparties, IBRD offers derivative- intermediation
and other services to borrowing member countries, as well as to affiliated and non-affiliated organizations, to
help meet their development needs or to carry out their development mandates (Table 36):

Table 36: Non-Commercial Counterparty Credit Risk

In millions of U.S. dollars Exposures as of June 30, 2025

Exposures as of June 30, 2025  Instrument used                               Purpose of derivative transaction          Notional Net Exposure

Non-Commercial                                                                                                          $5,923 $--
Counterparty

Borrowing Member Countries . . . . . . Derivatives Assist borrowing member                                              1,844  --
                                                                   countries with managing risks

Non-Affiliated Organization . . . . . . . Derivatives Assist IFFIm with managing risks

                                                                                                                        $7,767 $--

 Borrowing Member Countries: Currency and interest rate swap transactions are executed between
    IBRD and its borrowers under master derivative agreements. As of June 30, 2025, the notional amounts
    were $5.9 billion with no net exposure to IBRD under these agreements. Expected losses inherent in
    these exposures due to country credit risk are incorporated in the fair value of these instruments.

 Affiliated Organizations: Derivative contracts were executed between IBRD and IDA, under an
    agreement allowing IBRD to intermediate derivative contracts on behalf of IDA. As of June 30, 2025,
    IBRD did not have any exposure to IDA under these agreements.

 Non-Affiliated Organizations: IBRD has a master derivatives agreement with IFFIm, under which
    several transactions have been executed. As of June 30, 2025, the notional amounts were $1.8 billion
    with no net fair value exposures to IBRD under this agreement. IBRD has the right to call for collateral

                                                                         60
            above an agreed specified threshold. As of June 30, 2025, IBRD had not exercised this right, but it
            reserves the right under the existing terms of the agreement. Rather than calling for collateral, IBRD
            and IFFIm have agreed to manage IBRD's exposure by applying a risk management buffer to the
            gearing ratio limit. The gearing ratio limit represents the maximum amount of IFFIm's net financial
            obligations less cash and liquid assets, as a percentage of the net present value of its financial assets.

Credit and Debit Valuation Adjustments

Most outstanding derivative positions are transacted over the counter and therefore valued using internally
developed valuation models. For commercial and non-commercial counterparties where IBRD has a net exposure
(net receivable position), IBRD calculates a Credit Valuation Adjustment (CVA) to reflect credit risk. For net
derivative positions with commercial and non-commercial counterparties where IBRD is in a net payable
position, IBRD calculates a Debit Valuation Adjustment (DVA) to reflect its own credit risk.

The CVA is calculated using future projected exposures of the derivative contracts, net of collateral received
under credit support agreements, and the probability of counterparty default based on the Credit Default Swaps
(CDS) spread and, where applicable, proxy CDS spreads. IBRD does not currently hedge this exposure. The
DVA calculation is generally consistent with the CVA methodology and incorporates IBRD's own credit spread
as observed through the CDS market. As of June 30, 2025, IBRD recorded a CVA on its Balance Sheet of
$36 million, and a DVA of $319 million.

Changes in Credit Spreads

        Borrowings: IBRD's own credit risk reflects the cost of funding relative to applicable reference rates.
            Changes in IBRD's credit spreads result in unrealized mark-to-market gains/losses, recorded as Net
            Change in DVA on Fair Value Option elected liabilities in the Statements of Comprehensive Income.

        Loans: IBRD's fair value model mainly represents a hypothetical MDB market exit price of the loans
            outstanding. It incorporates CDS spreads as an indicator of the credit risk for each borrower, after
            adjusting recovery levels to incorporate IBRD's institutional experience and assumptions. These
            assumptions are reviewed annually. IBRD does not hedge its sovereign credit exposure but
            Management assesses its credit risk through a loan loss provisioning framework. The loan loss
            provision represents the expected losses inherent in its accrual and nonaccrual portfolios. IBRD's
            country credit risk is managed by using individual country exposure limits and by monitoring its
            credit-risk-bearing capacity.

        Investments: IBRD purchases investment-grade securities for its liquid asset portfolio. Credit risk is
            controlled through appropriate eligibility criteria (Box 7). The overall risk of the investment portfolio is
            also constrained by a consultative loss limit. In line with these risk management strategies, the potential
            effect of default risk on IBRD's investment portfolio is therefore small.

        Derivatives: IBRD uses derivatives to manage exposures to currency and interest rate risks in its
            investment, loan, other ALM and borrowing portfolios. It is therefore exposed to commercial
            counterparty credit risk on these instruments. This risk is managed through:

              Stringent selection of commercial derivative counterparties,

              Daily marking-to-market of derivative positions, and

              Use of collateral and collateral thresholds for all commercial counterparties.

The sensitivity of IBRD's portfolios to changes in credit spreads is shown in Table 37, where the amount
represents the dollar change in fair value which corresponds to a one basis point parallel upward shift in credit
spreads.

                                                                   61
Table 37: Effect of Credit on IBRD Portfolios

In millions of U.S. dollars

As of June 30, 2025                                                                                      Credit Effect on Portfolio
                                                                                                                 Sensitivity a
      Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Loans b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           $124
      Investments c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                (5)
                                                                                                                     (3)
      Total gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                  $116

a. Excludes CVA and DVA on derivatives.
b. If loans were measured at fair value
c. Excludes PEBP and PCRF holdings and investments related to LPF1 and GFPP.

Market Risk

IBRD is exposed to changes in interest and exchange rates, and it uses various strategies to minimize its exposure
to market risk.

Interest Rate Risk

Under its current interest rate risk management strategy, IBRD seeks to match the interest rate sensitivity of its
assets (loan and investment trading portfolios) with those of its liabilities (borrowing portfolio) by using
derivatives, such as interest rate swaps. These derivatives effectively convert IBRD's financial assets and
liabilities into variable-rate instruments. Before these derivatives, 90% of the outstanding borrowings had fixed
interest rates, and 11% of the loans had fixed interest rates as of June 30, 2025. After considering the effects of
these derivatives, virtually the entire borrowing and loan portfolios are reported at variable interest rates.

        Loan and Borrowing Portfolios: In line with IBRD's financial risk management strategies, the
            sensitivity of IBRD's loan and borrowing portfolios to changes in interest rates is managed through
            derivatives. As noted earlier, IBRD intends to maintain its positions in these portfolios until maturity
            and thus manages these instruments on a cash flow basis. The resulting net unrealized mark-to- market
            gains and losses on these portfolios, associated with the sensitivity to interest rates, are therefore not
            expected to be realized.

        Other ALM: IBRD uses derivatives to convert the variable rate cash flows on loans funded by equity
            back to fixed rate cash flows, thereby stabilizing loan interest revenue over time. Other ALM is
            classified as a non-trading portfolio and these derivatives are recorded at fair value.

        Investments: After the effects of derivatives, the duration of the investment trading portfolio is less than
            three months. As a result, the portfolio has a low sensitivity to changes in interest rates, resulting in
            small fair value adjustments to income.

The sensitivity of these portfolios to interest rate movements, after the effect of derivatives, is shown in Table 38
below where the amount represents the dollar change in fair value corresponding to a one basis point parallel
upward shift in interest rates as of June 30, 2025.

                                               62
Table 38: Effect of Interest Rates on IBRD's Portfolios

In millions of U.S. dollars

      As of June 30, 2025                                                                                   Net Interest Rates Effect on
                                                                                                               Portfolio Sensitivity a
            Borrowing portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
            Loan portfolio b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                $ (3)
            Other ALM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   1
            Investment portfolio c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                        (24)
            Total losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               (1)

                                                                                                                      $(27)

a. After the effects of derivatives
b. If loans were measured at fair value.
c. Excludes PEBP and PCRF holdings and investments related to LPF1 and GFPP.

Figure 15 depicts the effect of derivatives on the overall sensitivity of borrowing, loan, other ALM and
investments portfolios. It indicates the extent to which each portfolio is economically hedged. For example, for
the borrowing portfolio, a one basis point increase in interest rates would result in $118 million of unrealized
mark-to-market gains on bonds, which would be offset by the impact of $121 million of unrealized
mark-to-market losses on swaps. Loan sensitivities are illustrative as loans are reported at amortized cost on the
Balance Sheets.

                                           Figure 15: Sensitivity to Interest Rates

      (Dollar change in fair value corresponding to a one-basis-point upward parallel shift in interest rates) In millions of U.S. dollars
                                                                        As of June 30, 2025

      Borrowing Portfolio  Loan Portfolio                Other ALM                                          Investment Portfolio

      Swaps Bonds          Loans Swaps                   Swaps                                              Investments Swaps

FY25  -121  118            -35 36                        -24                                                         -4 3

FY24  -100  99             -33 33                        -24                                                -2 1

      -150 -75 0 75 150 -60 -30 0 30 60 -30 -15 0 15 30 -5 -3 0 3 5

Alignment of Assets and Liabilities  IBRD borrows in multiple currency and interest rate bases worldwide and
lends the proceeds of those borrowings to eligible member countries. IBRD offers its borrowers the option of
converting the currency and interest rate bases on their loans where there is a liquid swap market, thereby
enabling them to select loan terms that are best suited to their circumstances. Such options meet borrowers'
preferences and help mitigate their currency and interest rate risk. In the absence of active risk management,
IBRD would be exposed to substantial market risk and asset-liability management imbalances. To address such
imbalances, IBRD uses derivatives to swap its payment obligations on bonds to a currency and interest rate basis
that is aligned with its loan portfolio. Likewise, when a borrower exercises a conversion option on a loan to
change its currency or interest rate basis, IBRD uses derivatives to convert its exposure back to a currency and
interest rate basis, that is aligned with its loan portfolio. Thus, IBRD's payment obligations on its borrowings are
aligned with its loans funded by such borrowings  generally, after the effect of derivatives, IBRD primarily pays
either U.S. dollar or euro, short-term variable rates on its borrowings, and receives either U.S. dollar or euro,
short- term variable rates on its loans. Figure 16 below illustrates the use of derivatives in the loan and borrowing
portfolios.

                                           63
                Figure 16: Use of Derivatives for Loans and Borrowings

Market Debt                  After Derivatives                          Loans

 Non-US         Currency     In US dollars      Currency                  In multiple
Currencies       Swaps        and euros          Swaps                  currencies of

  In multiple      Interest   Reference          Interest                 borrowers'
 interest rate  Rate Swaps   rate-based            Rate                   preference
bases or fixed               floating rate       Swaps
 coupon rate                                                              In multiple
                                                                         interest rate
                                                                        bases or fixed
                                                                         coupon rate

Derivatives are also used to manage market risk in the liquidity portfolio. In line with its development mandate,
IBRD maintains a large liquidity balance to ensure that it can make payments on its borrowing obligations and
loan disbursements, even in the event of severe market disruptions. Pending disbursement, the liquidity portfolio
is invested on a global basis in multiple currencies and interest rates. Derivatives are also used to align the
currency and duration of investments with the debt funding the liquidity portfolio. Figure 17 below illustrates the
use of derivatives in the liquidity portfolio:

                                       Figure 17: Use of Derivatives for Investments

Market Debt                  After Derivatives             Liquidity Portfolio

 Non-US         Currency     In US dollars      Currency                  In multiple
Currencies       Swaps                           Swaps                    currencies

  In multiple      Interest   Reference          Interest                 In multiple
 interest rate  Rate Swaps   rate-based            Rate                  interest rate
bases or fixed               floating rate       Swaps                  bases or fixed
 coupon rate                                                             coupon rate

Other ALM  Given most loans carry variable rates, for the portion of loans that are funded by equity, loan
interest revenue, if left unmanaged, would be highly sensitive to fluctuations in short-term interest rates. The
Equity-to-Loans ratio of 21.6% indicates the portion of loans funded by equity. To manage this exposure,
Management has put in place a framework with the primary goal of stabilizing this revenue. Under this
framework, IBRD uses derivatives to convert the variable rate cash flows on loans funded by equity back to fixed
rate cash flows, thereby stabilizing loan interest revenue over time. See Figure 18 below.

                                                                   64
Figure 18: Use of Derivatives for Other ALM

 Equity-Funded Loans                After Derivatives
(After Loan Derivatives)

   Floating    Interest Rate Swaps  Fixed Rate
Interest Rate                       Cash Flows
Cash Flows

Although interest rates have been rising, low and negative interest rates present a challenge for various IBRD
portfolios.

Loans to borrowing countries:
Under IBRD's loan agreements, if an interest rate formula yields a negative rate, the interest rate charged is zero.

Liquid Asset Portfolio:
IBRD's existing guidelines allow for the investment in a wide variety of credit products in both developed and
emerging market economies (see investment eligibility criteria in Box 7). In FY25, IBRD's liquid asset portfolio
incurred unrealized mark-to-market losses due to the sharp increase in interest rates.

The interest rate risk on IBRD's liquid asset portfolio, including the risk that the value of assets in the portfolio
will fluctuate in response to changes in market interest rates, is managed within specified duration-mismatch
limits. The liquid asset portfolio has spread exposure because IBRD holds instruments other than short-term bank
deposits. These investments generally yield positive returns over the risk-free reference rate (Secured Overnight
Financing Rate - SOFR) but can generate mark-to-market gains or losses if the credit spread moves.

Fixed Spread Loan Refinancing Risk
Refinancing risk for funding fixed-spread loans relates to the potential impact of any future deterioration in
IBRD's funding spread relative to what was computed in the fixed-spread when the loan was initially disbursed.
IBRD does not match the maturity of its funding with that of its fixed spread loans as this would result in
significantly higher financing costs for all loans. Instead, IBRD targets a shorter average funding maturity and
manages the refinancing risk by charging a risk premium.

Effective April 1, 2021, IBRD's offering of loans on fixed spread terms has been suspended.

Other Interest Rate Risks
Interest rate risk also arises from other variables, including differences in timing between the contractual
maturities or re-pricing of IBRD's assets, liabilities, and derivative instruments. On variable-rate assets and
liabilities, IBRD is exposed to timing mismatches between the re-set dates on its variable-rate receivables and
payables. IBRD monitors these exposures and may execute overlay interest rates swaps to reduce sizable timing
mismatches.

Exchange Rate Risk
IBRD holds the majority of its assets and liabilities in U.S. dollars and euro. However, the reported levels of its
assets, liabilities, income, and expenses in the financial statements are affected by exchange rate movements in

                                                                   65
all the currencies in which IBRD transacts, relative to its reporting currency, the U.S. dollar. IBRD's functional
currencies are the U.S. dollar and euro. Currency translation adjustments relating to euro-denominated balances
are reflected in other comprehensive income, a component of equity. Currency translation adjustments relating to
non-euro denominated balances (non-functional currencies) are reported in the Statements of Income. While
IBRD's equity could be affected by exchange rate movements, IBRD's risk management policies work to
minimize the exchange rate risk in its capital adequacy, by immunizing the Equity-to-Loans ratio against
exchange rate movements.

To minimize exchange risk, IBRD matches its borrowing obligations in any one currency (after derivatives) with
assets in the same currency. In addition, IBRD undertakes periodic currency conversions to align the currency
composition of its equity with that of its outstanding loans across major currencies. Together, these policies are
designed to minimize the impact of exchange rate fluctuations on the Equity-to-Loans ratio; thereby preserving
IBRD's ability to better absorb unexpected losses from arrears on loan repayments, regardless of exchange rate
movements. As a result, exchange rate movements during the year generally do not have an impact on the overall
Equity-to-Loans ratio.

The currency composition of the Loan portfolio (after the effect of associated derivatives) as of June 30, 2025
mainly consists of 79% U.S. Dollars and 20% euros.

The currency composition of the Borrowing portfolio (after the effect of associated derivatives) funding loans as
of June 30, 2025 mainly consists of 79% U.S. Dollars and 20% euros.

Liquidity Risk

Liquidity risk arises in the general funding of IBRD's activities and in managing its financial position. It includes
the risk of IBRD being unable to fund its portfolio of assets at appropriate maturities and rates, and the risk of
being unable to liquidate a position in a timely manner at a reasonable price.

Under IBRD's liquidity management guidelines, aggregate liquid asset holdings are kept at or above a specified
Prudential Minimum to safeguard against cash flow interruptions.

The Target Liquidity Level represents twelve-months' coverage as calculated at the start of every fiscal year. The
Prudential Minimum is defined as 80% of the Target Liquidity Level. The maximum guideline of 150% of the
Target Liquidity Level continues to function as a guideline rather than a hard ceiling (Table 39).

Table 39: Liquidity Levels

Effective for FY25                                                                                                            In billions of % of Target
                                                                                                                              U.S. dollars Liquidity Level

Target Liquidity Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $65.0  150%
Guideline Maximum Liquidity Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                97.5   80%
Prudential Minimum Liquidity Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               52.0  148%
Liquid Asset Portfolio as of June 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              $96.0

The FY26 Target Liquidity Level is set at $79.0 billion, $14.0 billion higher than FY25 Target Liquidity Level
due to higher projected debt service and net loan disbursements in FY26.

Operational Risk

Operational risk is defined as the risk of financial loss or damage to IBRD's reputation resulting from inadequate
or failed internal processes, people and systems, or from external events.

                            66
IBRD recognizes the importance of operational risk management activities, which are embedded in its financial
operations. As part of its business activities, IBRD is exposed to a range of operational risks including physical
security, staff health and safety, information security and data privacy, business continuity, and third-party risks.
IBRD's approach to identifying and managing operational risk includes a dedicated program for these risks and a
robust process that includes assessing and prioritizing operational risks, monitoring and reporting relevant key
risk indicators, aggregating and analyzing internal and external events, identifying emerging risks that may affect
business units, and developing risk responses and mitigating actions.

Cybersecurity Risk Management
IBRD's operations rely on the secure processing, storage and transmission of confidential and other information
in computer systems and networks. Like other financial institutions, cybersecurity risk continues to be significant
for IBRD due to the evolving sophistication and complexity of the cyber threat landscape. These risks are
unavoidable and IBRD seeks to manage them on a cost-effective basis consistent with its risk appetite.
To protect the security of its computer systems, software, networks and other technology assets, IBRD has
developed a cybersecurity risk management program, aligned with its Operational Risk Management Framework.
This program consists of cybersecurity policies, procedures, compliance and awareness programs. A
multi-layered approach for cybersecurity risk management is employed to prevent and detect malicious activity,
both from within the organization and from external sources. In response to emerging cyber threats such as
malware including ransomware, denial of service, phishing attacks and artificial intelligence related risks, IBRD
adapts its technical and process-level controls and enhances user awareness to mitigate the risk. When relying on
third-party vendors for technology-enabled services, additional meaningful and diligent measures are applied to
gain assurance regarding the security of its information and technology assets including, as appropriate, legal and
cybersecurity contractual safeguards in third-party vendor agreements and the review and monitoring of
third-party control environments.
IBRD periodically assesses the maturity and effectiveness of its cyber defenses through risk mitigation
techniques, including but not limited to, targeted testing, internal and external audits, incident response desktop
exercises and industry benchmarking.

                                                                   67
                         SECTION X: CONTRACTUAL OBLIGATIONS

In conducting its business, IBRD takes on contractual obligations that may require future payments. These
include borrowings, operating and finance leases, contractual purchases, capital expenditures, and other long-
term liabilities. Table 40 shows IBRD's contractual obligations for the next five years and thereafter; it excludes
the following obligations reflected on IBRD's Balance Sheets: undisbursed loans, amounts payable for currency
and interest rate swaps, amounts payable for investment securities purchased, guarantees, and cash received
under agency arrangements.

        Borrowings: IBRD issues debt in the form of securities to private and governmental buyers.

        Finance Leases: IBRD reclassified a land lease as a finance lease following the execution of a purchase
            and sale agreement during the fiscal year ended June 30, 2025. The amount due in one year represents
            future cash payments for real estate-related obligations based on the contractual amounts payable until
            the purchase is completed in June 2026 as planned.

        Operating Leases: IBRD leases real estate and equipment under lease agreements for varying periods.
            Operating lease expenditures represents future cash payments for real estate-related obligations and
            equipment, based on contractual amounts.

        Contractual Purchases: IBRD is a party to various obligations to purchase products and services,
            which are purchase commitments in the ordinary course of business.

        Other Long-Term Liabilities: IBRD provides a variety of benefits to its employees. As some of these
            benefits are of a long-term nature, IBRD records the associated liability on its Balance Sheets. The
            obligations payable represents expected benefit payments as well as contributions to the pension plans.
            These include future service and pay accruals for current staff and new staff projections for the next 10
            years.

Operating leases, contractual purchases and capital expenditures, and other long-term obligations include
obligations shared with IDA, IFC, and MIGA under cost-sharing and service arrangements. These arrangements
reflect the WBG strategy of maximizing synergies, to best leverage resources for development (see Notes to
Financial Statements, Note H for Transactions with Affiliated Organizations).

Table 40: Contractual Obligations

In millions of U.S. dollars

                                                                                                      As of June 30, 2025

                                                                                             Due after 1 Due after 3

                                                                              Due in 1 year  Year up to Years up to        Due After
                                                                                 or Less                                    5 years
                                                                                             3 Years   5 Years                        Total

Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $47,162        $74,298   $71,827        $112,874        $306,161
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        11            --        --              --                11
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          61             57        28                9            155
Contractual purchases . . . . . . . . . . . . . . . . . . . . . . . . .            644             20          4               8            676
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . .              777            201       115             224
                                                                                                                                          1,317

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,655 $74,576 $71,974 $113,115 $308,320

                                                                              68
          SECTION XI: PENSION & OTHER POST-RETIREMENT BENEFITS

Governance

IBRD participates, along with IFC and MIGA, in pension and post-retirement benefit plans. The Staff Retirement
Plan and Trust (SRP), Retired Staff Benefits Plan and Trust (RSBP), and PEBP (collectively called the "Plans")
are defined benefit plans and cover all WBG employees, retirees and their beneficiaries. Costs, assets, and
liabilities associated with the Plans are allocated among IBRD, IFC, and MIGA, based on their employees'
respective participation in the Plans. Costs allocated to IBRD are subsequently shared with IDA, based on an
agreed cost-sharing ratio (see Notes to Financial Statements, Note K: Pension and Other Post-Retirement
Benefits).

The benefits of the Plans at retirement are determined pursuant to the Plan Documents adopted by the Board
(Plan Document). IBRD has a contractual obligation to make benefit payments to the Plans' beneficiaries. The
governance mechanism of the Plans, including the funding and investment policies described here, are designed
to support this objective.

There are two committees that govern the Plans. From a governance standpoint, both committees are independent
of IBRD and the Board.

        The Pension Finance Committee (PFC), which is responsible for the financial management of the Plans
            and is supported by the Pension Finance Administrator.

        The Pension Benefits Administration Committee (PBAC), which is responsible for the administration
            of the benefits of the Plans.

Contributions to the SRP and RSBP are irrevocable, with assets held in separate trusts, and the PEBP assets are
included in IBRD's investment portfolio. IBRD acts as trustee for the Plans and the assets are used for the
exclusive benefit of the participants and their beneficiaries. The objective of the Plans is to accumulate sufficient
assets to meet future pension benefit obligations. As of June 30, 2025, IBRD and IDA's share of the assets
amounted to $34.7 billion (Table 41). This represents the accumulated contributions paid into the plans net of
benefit payments, together with the accumulated value of investment earnings, net of related expenses.

Funding and Investment Policies

The key policies underpinning the financial management of the Plans, including the determination of WBG
contributions and the investment of Plan assets, are the funding and investment policies. The objective of these
policies is to ensure that the Plans have sufficient assets to meet benefit payments over the long term. The
funding policy, as approved by the PFC, establishes the rules that determine the WBG's contributions. The policy
seeks to fund the Plans in a consistent and timely manner, while at the same time avoiding excessive volatility in
WBG contributions. The funding policy determines how much the WBG must contribute annually to sustain and
ensure the accumulation of sufficient assets over time to meet the expected benefit payments. Under the Plan
Document, the PFC determines the WBG contribution based on actuarial valuations. IBRD is required to make
the contribution determined by the PFC. In FY25, the WBG's rate for contributions to the Plans was 12.71% of
salaries.

The Projected Benefit Obligation (PBO) is derived from AA-rated corporate bonds, as required by U.S. GAAP.
The selection of this rate as the basis for the discount rate is to establish a liability equivalent to an amount that if
invested in high-quality fixed income securities would match the benefit payment stream. While this measure is
based on an objective, observable market rate, it does not necessarily reflect the realized or expected returns of
the Plan which depend on how the Plans are managed and invested. The PBO for funding purposes is discounted
using a 3.5% real discount rate since the funding strategy for the Plans is based on a target of 3.5% real return on
investments. This rate constitutes the long-term return objective for the Plan's assets, referred to as the Long-
Term Real Return Objective (LTRRO), which Management has followed since the year ended June 30, 1999 and
last reaffirmed under the strategic asset allocation review in April 2024. If the return on pension assets is 3.5% in
real terms and contributions are made at the actuarially required rates (which reflect the long-term cost of the
plan benefit), the Plan benefits will be funded over time.

                                                                   69
The assets of the Plans are diversified across a variety of asset classes, with the objective of achieving returns
consistent with the LTRRO over the long term without taking undue risks. The returns on investments for the
Plans have met or exceeded the LTRRO on a consistent basis in the long term as well as in recent years. The PFC
periodically reviews the LTRRO for realism and appropriateness. See Notes to Financial Statements, Note K:
Pension and Other Post-Retirement Benefits for asset allocation, expected return on Plan assets and assumptions
used to determine the PBO.

The Plan has a long-standing Environmental, Social and Governance (ESG) policy that reflects the latest
developments in and understanding of responsible investments and ESG integration. The ESG policy is based on
a principled and pragmatic approach in accordance with and subject to the fiduciary standard applicable to the
administration and investment of Plan assets. The Plan's ESG policy outlines a practical approach to ESG
integration and responsible ownership, providing an operational framework for a consistent consideration of
relevant ESG issues applicable to each asset class, as well as for the conduct of corporate engagement and proxy
voting on the Plan's applicable equity holdings.

Projected Benefit Obligations

Given that pension plan liabilities can be defined and measured in different ways, it is possible to have different
funded status measures for the same plans. The most widely used and publicly disclosed measure of pension plan
liabilities is the PBO measure required under U.S. GAAP. It reflects the present value of all retirement benefits
earned by participants (adjusted for assumed inflation) as of a given date, including projected salary increases to
retirement. Therefore, the PBO measure is an appropriate metric for assessing the ability of the Plans to cover
expected benefits as of a certain date. The underlying actuarial assumptions used to determine the PBO,
accumulated benefit obligations, and funded status associated with the Plans are based on financial market
interest rates, experience, and Management's best estimate of future benefit changes, economic conditions and
earnings from plan assets.

Table 41: Funded Status of the Plans

In millions of U.S. dollars

                                                                                                         As of June 30, 2025

                                                                                                    SRP  RSBP  PEBP           Total

PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(21,555) $(2,725) $(2,070) $(26,350)
Plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,400 4,921 2,359 34,680

Net position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,845 $ 2,196 $ 289 $ 8,330

IBRD's funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            $ 3,908

                                                                                                         As of June 30, 2024

                                                                                                    SRP  RSBP  PEBP           Total

PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(22,166) $(3,408) $(2,097) $(27,671)
Plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,689 4,540 2,135 32,364

Net position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,523 $ 1,132 $ 38 $ 4,693

IBRD's funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            $ 2,235

The discount rate used to convert future obligations into today's dollars is derived from high-grade, AA- rated
corporate bond yields as required by U.S. GAAP. The overfunded status of the pension plans for IBRD and IDA
of $8,330 million as of June 30, 2025, net of PEBP assets, primarily reflects the actuarial gains in the projected
benefit obligations as a result of the decrease in the expected inflation rate and the increase in the nominal
discount rate, as well as the increase in the value of the Plan Assets due to higher-than-expected asset returns. As
the Plans are managed with a long-term horizon, results over shorter time periods may be impacted positively or
negatively by market fluctuations.

                                                                   70
SECTION XII: CRITICAL ACCOUNTING POLICIES AND THE USE OF ESTIMATES

IBRD's significant accounting policies, as well as estimates made by Management, are integral to its financial
reporting. While all of these policies require a certain level of judgment and estimates, significant policies
require Management to make highly difficult, complex, and subjective judgments as these relate to matters
inherently uncertain and susceptible to change. Note A to the financial statements contains a summary of IBRD's
significant accounting policies including a discussion of recently issued accounting pronouncements.

Fair Value of Financial Instruments

The fair values of financial instruments are based on a three-level hierarchy. For financial instruments classified
as Level 1 or 2, less judgment is applied in arriving at fair value measures as the inputs are based on observable
market data. For financial instruments classified as Level 3, unobservable inputs are used. These require
Management to make important assumptions and judgments in determining fair value measures. Investments
measured at net asset value per share (or its equivalent) are not classified in the fair value hierarchy.

Most of IBRD's financial instruments which are recorded at fair value are classified as Levels 1 and 2. Table 42
presents the summary of the fair value of financial instruments recorded at fair value on a recurring basis, and the
amounts measured using significant Level 3 inputs. IBRD's level 3 instruments are mainly structured bonds and
related swaps held in the borrowing portfolio; these use market observable inputs and unobservable inputs such
as correlations, interest rate volatilities, and equity index volatilities. There were no Level 3 instruments in
IBRD's investment or loan portfolios as of June 30, 2025. All of IBRD's loans were reported at amortized cost as
of June 30, 2025.

Table 42: Fair Value Level 3 Summary

In millions U.S. dollars

For the fiscal year ended June 30,                                                                             2025              2024

                                                                                                      Level 3   Total   Level 3   Total
                                                                                                               Balance           Balance

Total Assets at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 356 $115,364    $ 263 $ 94,842
As a percentage of total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          0.31%             0.28%
Total Liabilities at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As a percentage of total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $5,121 $330,706   $4,349 $296,712
                                                                                                         1.55%             1.47%

IBRD reviews the methodology, inputs, and assumptions on a quarterly basis to assess the appropriateness of the
fair value hierarchy classification of each financial instrument.

Some financial instruments are valued using pricing models. The valuation group, independent of the treasury
and financial reporting functions, reviews all financial instrument models affecting financial reporting through
fair value and assesses model appropriateness and consistency. The review looks at whether the models
accurately reflect the characteristics of the transaction and its risks, the suitability and convergence properties of
numerical algorithms, the reliability of data sources, the consistency of the treatment with models for similar
products, and sensitivity to input parameters and assumptions that cannot be priced from the market.

Reviews are conducted of new and/or changed models, as well as previously validated models, to assess whether
any changes in the product or market may have affected the model's continued validity and whether any
theoretical or competitive developments may require reassessment of the model's adequacy.

The financial models used for input to IBRD's financial statements are subject to both internal and periodic
external verification and review by qualified personnel.

                                      71
In cases where Management relies on instrument valuations supplied by external pricing vendors, procedures are
in place to validate the appropriateness of the models used, as well as the inputs applied in determining those
values.

Provision for Losses on Loans and Other Exposures
IBRD evaluates estimated exposures over the life of loans and other exposures, to incorporate undisbursed loan
commitments in the measure of exposure, and to incorporate estimations of future market conditions for a
reasonable and supportable forecast period along with historical experience. The overall provision for expected
losses is the sum of the computed annual losses, taking into account borrower risk ratings and associated
expected default frequencies, estimates of exposure, and severity of loss given default.

For loans reported at fair value, if any, the credit risk assessment is a determinant of fair value. All of IBRD's
loans were reported at amortized cost as of June 30, 2025.

The determination of a borrower's risk rating is based on complex variables such as: political risk, external debt
and liquidity, fiscal policy and the public debt burden, balance of payments risks, economic structure and growth
prospects, monetary and exchange rate policy, and financial sector risks and corporate sector debt and other
vulnerabilities. Additionally, estimations of disbursements and repayments of exposures are made, as well as
estimations of future interest cash flows based on forward looking market variables, and the impact of any credit
enhancement arrangements IBRD has received.

IBRD periodically reviews these variables and reassesses the adequacy of the accumulated provision
accordingly. Actual losses may differ from expected losses owing to unforeseen changes in any of the variables
affecting the creditworthiness or estimates inherent in the exposure measurements of borrowers.

The Credit Risk Committee monitors aspects of country credit risk, in particular, reviewing the provision for
losses on loans and guarantees taking into account, among other factors, any changes in exposure, risk ratings of
borrowing member countries, or changes between the accrual and nonaccrual portfolios.

The accumulated provision for loan losses is reported separately in the Balance Sheets as a reduction from
IBRD's total loans outstanding. The accumulated provision for losses on loan commitments and other exposures
is included in accounts payable and miscellaneous liabilities. Increases or decreases in the accumulated provision
for losses on loans and other exposures are reported in the Statements of Income as a Provision for losses on
loans and other exposures (see Notes to Financial Statements: Note A: Summary of Significant Accounting and
Related Policies and Note D: Loans and Other Exposures).

Pension and Other Post-Retirement Benefits
The underlying actuarial assumptions used to determine the PBO, accumulated benefit obligations, and funded
status associated with IBRD pension and other post-retirement benefit plans are based on financial market
interest rates, experience, and Management's best estimate of future benefit changes and economic conditions.
All costs, assets and liabilities associated with these plans are allocated between IBRD, IFC, and MIGA based
upon their employees' respective participation in the plans. Costs allocated to IBRD are then shared between
IBRD and IDA based on an agreed cost-sharing ratio. IDA, IFC and MIGA reimburse IBRD for their
proportionate share of any contributions made to these plans by IBRD. Contributions to the plans are calculated
as a percentage of salary (see Notes to Financial Statements, Note K: Pension and Other Post-Retirement
Benefits).

                                                                   72
                       SECTION XIII: GOVERNANCE AND CONTROLS
Business Conduct

The WBG promotes a positive work environment in which staff members understand their ethical obligations to
the institution. In support of this commitment, the institution has in place a Code of Conduct. The WBG has both
an Ethics Help Line and a Fraud and Corruption hotline. A third-party service offers many methods of worldwide
communication. Reporting channels include telephone, mail, email, or confidential submission through a
website.

IBRD has procedures in place for receiving, retaining, and handling recommendations and concerns relating to
business conduct identified during the accounting, internal control, and auditing processes.

WBG staff rules clarify and codify the staff's obligations in reporting suspected fraud, corruption, or other
misconduct that may threaten the operations or governance of the WBG. These rules also offer protection from
retaliation.

                                               Figure 19: Governance Structure

                                                Board of Governors

 Audit Committee  Executive   Committee on Development
                  Directors            Effectiveness
Budget Committee
                   President  Committee on Governance
Human Resources                 and Executive Directors'
     Committee                   Administrative Matters

General Governance

IBRD's decision-making structure consists of the Board of Governors, Executive Directors (the Board), the
President, Management, and staff. The Board of Governors is the highest decision-making authority. Governors
are appointed by their member governments for a five-year term, which is renewable. The Board of Governors
may delegate authority to the Executive Directors to exercise any of its powers, except for certain powers
enumerated in IBRD's Articles. IBRD has its own policies and frameworks that are carried out by staff that share
responsibilities over both IBRD and IDA.

In addition, IBRD and IDA have joint internal institutional oversight units which play an assurance role to
shareholders and management that IBRD's work is impactful and accountable, informed by best practices, and
delivered to the highest ethical standards with risk management controls and governance processes that are
functioning effectively.

Executive Directors

In accordance with IBRD's Articles, Executive Directors are appointed or elected every two years by their
member governments. The Board currently has 25 Executive Directors, who represent all 189 member countries.
Executive Directors are neither officers nor staff of IBRD. The President is the only member of the Board from
management, and he serves as a non-voting member and as Chairman of the Board.

                                                                   73
The Board is required to consider proposals made by the President on IBRD loans, grants and guarantees and on
other policies that affect its general operations. The Board is also responsible for presenting to the Governors, at
the Annual Meetings, audited accounts, an administrative budget, and an annual report on operations and policies
and other matters.

The Board and its committees are in continuous sessions based in Washington DC, as business requires. Each
committee's terms of reference establish its respective roles and responsibilities. As committees do not vote on
issues, their role is primarily to serve the Board in discharging its responsibilities.

The committees are made up of eight members and function under their respective stipulated terms of reference.
These committees are as follows:

        Audit Committee--assists the Board in overseeing IBRD's finances, accounting, risk management and
            internal controls (see further explanation below).

        Budget Committee--assists the Board in approving the World Bank's budget and in overseeing the
            preparation and execution of IBRD's business plans. The committee provides guidance to management
            on strategic directions of IBRD.

        Committee on Development Effectiveness--supports the Board in assessing IBRD's development
            effectiveness, providing guidance on strategic directions of IBRD, and monitoring the quality and
            results of operations.

        Committee on Governance and Executive Directors' Administrative Matters--assists the Board on
            issues related to the governance of IBRD, the Board's own effectiveness, and the administrative policy
            applicable to Executive Directors' offices.

        Human Resources Committee--strengthens the efficiency and effectiveness of the Board in
            discharging its oversight responsibility on the World Bank's human resources strategy, policies and
            practices, and their alignment with the business needs of the organization.

Audit Committee

Membership

The Audit Committee consists of eight Executive Directors. Membership in the Committee is determined by the
Board, based on nominations by the Chairman of the Board, following informal consultation with Executive
Directors.

Key Responsibilities

The Audit Committee is appointed by the Board for the primary purpose of assisting the Board in overseeing
IBRD's finances, accounting, risk management, internal controls and institutional integrity. Specific
responsibilities include:

        Oversight of the integrity of IBRD's financial statements.

        Appointment, qualifications, independence and performance of the External Auditor.

        Performance of the Group Internal Audit.

        Adequacy and effectiveness of financial and accounting policies and internal controls and the
            mechanisms to deter, prevent and penalize fraud and corruption in IBRD operations and corporate
            procurement.

        Effective management of financial, fiduciary and compliance risks in IBRD.

        Oversight of the institutional arrangements and processes for risk management across IBRD.

                                                                   74
In carrying out its role, the Audit Committee discusses financial issues and policies that affect IBRD's financial
position and capital adequacy with Management, external auditors, and internal auditors. It recommends the
annual audited financial statements for approval to the Board. The Audit Committee monitors and reviews
developments in corporate governance and its own role on an ongoing basis.

Executive Sessions
Under the Audit Committee's terms of reference, it may convene in executive session at any time, without
Management's presence. The Audit Committee meets separately in executive session with the external and
internal auditors.

Access to Resources and to Management
Throughout the year, the Audit Committee receives a large volume of information to enable it to carry out its
duties and meets both formally and informally throughout the year to discuss relevant matters. It has complete
access to Management, and reviews and discusses with Management topics considered in its terms of reference.
The Audit Committee has the authority to seek advice and assistance from outside legal, accounting, or other
advisors as it deems necessary.

Auditor Independence
The appointment of the external auditor for IBRD is governed by a set of Board-approved principles. These
include:

        Limits on the external auditor's provision of non-audit-related services
        Requiring all audit-related services to be pre-approved on a case-by-case basis by the Board, upon

            recommendation of the Audit Committee, and
        Renewal of the external audit contract every five years, with a limit of two consecutive terms and

            mandatory rotation thereafter.

The external auditor may provide non-prohibited, non-audit related services subject to monetary limits. Broadly,
the list of prohibited non-audit services include those that would put the external auditor in the roles typically
performed by management and in a position of auditing their own work, such as accounting services, internal
audit services, and provision of investment advice. The total non-audit services fees over the term of the relevant
external audit contract shall not exceed 70% of the audit fees over the same period.

Communication between the external auditor and the Audit Committee is ongoing and carried out as often as
deemed necessary by either party. The Audit Committee meets periodically with the external auditor and
individual committee members have independent access to the external auditor. IBRD's external auditors also
follow the communication requirements with the Audit Committee set out under generally accepted auditing
standards in the United States.

External Auditors
The external auditor is appointed to a five-year term, with a limit of two consecutive terms, and is subject to
annual reappointment based on the recommendation of the Audit Committee and approval of a resolution by the
Board.

In May 2022, IBRD's Board approved Deloitte & Touche LLP as IBRD's external auditor for a second five- year
term commencing in FY24.

                                                                   75
Senior Management Changes
Lakshmi Shyam-Sunder, WBG Chief Risk Officer and Vice President, retired in January 2025. Dennis
McLaughlin was appointed to this role effective January 2, 2025.
Pamela O'Connell, Vice President and WBG Controller, will be retiring and leaving the Bank in September
2025.
Internal Control
Internal Control Over Financial Reporting
Each fiscal year, Management evaluates the internal controls over financial reporting to determine whether any
changes made in these controls during the fiscal year materially affect, or would be reasonably likely to
materially affect, IBRD's internal control over financial reporting. The internal control framework promulgated
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), "Internal
Control--Integrated Framework (2013)" provides guidance for designing, implementing and conducting internal
control and assessing its effectiveness. IBRD uses the 2013 COSO framework to assess the effectiveness of the
internal control over financial reporting. As of June 30, 2025, management maintained effective internal control
over financial reporting. See "Management's report regarding effectiveness of Internal Control over Financial
Reporting" on page 92.
IBRD's internal control over financial reporting as of June 30, 2025, has been audited by Deloitte & Touche
LLP, an independent auditor, as stated in their report, which is included herein.
Disclosure Controls and Procedures
Disclosure controls and procedures are designed to ensure that information required to be disclosed is gathered
and communicated to Management, as appropriate, to allow timely decisions regarding required disclosure by
IBRD. Management conducted an evaluation of the effectiveness of such controls and procedures and the
President and the MDCFO have concluded that these controls and procedures were effective as of June 30, 2025.

                                                                   76
      SECTION XIV: RECONCILIATIONS OF COMPONENTS OF ALLOCABLE
                                                   INCOME

As discussed in Section I: Overview and Section III: Financial Results, in addition to reported financial measures
determined in accordance with U.S. GAAP, IBRD also uses certain non-GAAP financial measures to evaluate
performance, make operating decisions, determine business strategy, develop targeted financial goals, and
allocate resources.

The tables below provide a reconciliation of key components of allocable income referenced in the MD&A to the
most directly comparable U.S. GAAP reported measures.

Statements of Income

IBRD presents interest revenue on loans, investments and other assets, interest expense on borrowings and
certain other items on a gross basis on its reported statements of income. However, IBRD assesses the
performance of its lending, investing and other activities on a net basis, which takes into consideration interest
expense on borrowings to fund these activities, the impact of realized gains and losses on derivatives designated
as economic hedges to manage interest rate and currency risk and other costs. The presentation of amounts in
Table 3 is intended to reflect how IBRD manages its lending, investing and other activities and assesses the
financial performance of these activities.

Table 43 and Table 44 provide reconciliations of the components of IBRD's statements of income (Table 3) for
the specified periods to the non-GAAP amounts presented and discussed in the MD&A (Table 5).

Table 43: Interest Revenue, Net of Borrowings Expenses

In millions of U.S. dollars

For the fiscal years ended June 30,                                                                                                        2025     2024

Interest revenue--Loans, net (Table 3--Reported Basis) . . . . . . . . . . . . . . . . . . . . . . . . $ 15,301 $ 15,831

Less: Borrowing expenses funding loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,484) (10,957)

Add: Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        4  --

Loan interest revenue, net of funding costs (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,821 $ 4,874

Interest revenue--Investments-Trading, net (Table 3--Reported Basis) . . . . . . . . . . . .                                               $ 4,444 $ 4,337
Add: Reclassification of unrealized mark-to-market gains on investments-trading
                                                                                                                                           214      91
   portfolio, net (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unrealized mark-to-market (gains) losses attributable to PEBP, PCRF, LPF1 and                                                          (158) (112)
                                                                                                                                           (4,435) (4,255)
   GFPP investment holdings reclassified to non-interest revenue, net (Table 44) . . . . . . . .
Less: Borrowing expenses funding investment-trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment revenue, net of funding costs (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65 $ 61

Borrowing Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           10,484   10,957
Borrowing expenses funding loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  4,435    4,255
Borrowing expenses funding investment-trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add: Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1        3

Borrowing expense, net (Table 3--Reported Basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,920 $ 15,215

                                     77
Table 44: Total Revenue on Interest Earning Assets, Net

In millions of U.S. dollars

For the fiscal years ended June 30,                                                                                                              2025     2024

Interest revenue, net of borrowings expense (Table 3--Reported Basis) . . . . . . . . . . . . . . .                                              $3,534 $3,229
Add: Reclassification of unrealized mark-to-market gains (losses) on investments-trading
                                                                                                                                                 214      91
   portfolio, net (Table 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Unrealized mark-to-market (gains) losses attributable to PEBP, PCRF, LPF1 and GFPP                                                         (158) (112)

   investment holdings reclassified to non-interest revenue, net (Table 43) . . . . . . . . . . . . . . . . .                                          3        1
Add: Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total revenue on interest earning assets, net (Table 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,593 $3,209

                                     78
        SECTION XV: AFFILIATED ORGANIZATIONS--IDA, IFC AND MIGA

IDA's purpose is to promote economic development in the less developed areas of the world included in IDA's
membership by providing a combination of grants and financing on concessionary and non-concessionary terms.
IDA may not borrow from IBRD.
IDA has financed its operations over the years with its own equity, including regular additions to equity provided
by member countries as part of the replenishment process. As a result of the strong support of member countries,
IDA has built up a substantial equity base of $204.2 billion as of June 30, 2025. By prudently leveraging its
equity and blending market debt with equity contributions from members, IDA has increased its financial
efficiency, and scaled up its financing to support the escalating demand for its resources while ensuring its long-
term financial sustainability through a prudent risk management framework.
Under a statement of policy of IBRD's Board of Governors, IBRD may make transfers to IDA only out of net
income that (a) accrued during the fiscal year in respect of which the transfer is made and (b) is not needed for
allocation to reserves or otherwise required to be retained in IBRD's business. Transfers may also be made out of
net income previously transferred to surplus, upon the approval of the Board of Governors. In FY25, IDA
received $515 million from IBRD, resulting in cumulative transfers to IDA from IBRD of $17.3 billion as of
June 30, 2025. For additional information on transfers of IBRD's net income to IDA, see Section III of the
MD&A Income Allocation and the Notes to Financial Statements--Note G--Retained Earnings and Board of
Governors Approved Transfers.
IFC helps developing countries achieve sustainable growth by financing private sector investments, mobilizing
capital in international financial markets and providing advisory services to businesses and governments. Under
its Articles, IBRD is permitted to make loans to IFC (without a guarantee), subject to the limitation that IBRD
may not lend IFC any amount which would increase its total outstanding debt beyond a certain threshold. IBRD
has a Local Currency Loan Facility Agreement with IFC, which is capped at $300 million. As of June 30, 2025,
there were no loans outstanding under this facility.
MIGA was established to encourage the flow of investments for productive purposes by providing guarantees
against noncommercial risks for foreign investment in its developing member countries. IBRD may not lend to
MIGA.
For details of transactions with affiliated organizations, see the Notes to the Financial Statements--Note H--
Transactions with Affiliated Organizations.

                                                                   79
                          SECTION XVI: ADMINISTRATION OF IBRD

IBRD's administration is composed of the Board of Governors, the Executive Directors, the President, other
officers, and staff.

All the powers of IBRD are vested in the Board of Governors, which consists of a Governor and an Alternate
Governor appointed by each member of IBRD, who exercise the voting power to which that member is entitled.
Each member is entitled to an equal number of basic votes (representing 5.55 percent of the total voting power in
aggregate) plus one vote for each share held. The Board of Governors holds regular annual meetings.

There are 25 Executive Directors. Five of these are appointed, one by each of the five members having the largest
number of shares of capital stock at the time of such appointment (the United States, Japan, China, Germany, and
France and the United Kingdom (tied for fifth)), and the remainder are elected by the Governors representing the
other members. The Board of Governors has delegated to the Executive Directors authority to exercise all the
powers of IBRD except those reserved to the Governors under the Articles. The Executive Directors function as a
board, and each Executive Director is entitled to cast the number of votes of the member or members by which
such person is appointed or elected.

The following is an alphabetical list of the Executive Directors of IBRD and the member countries by which they
were appointed or elected:

Name                                               Countries
Zainab S. Ahmed . . . . . . . . . . . . .
Abdulaziz Al-Mulla . . . . . . . . . . .           Angola, Nigeria, South Africa
                                                   Bahrain, Egypt (Arab Republic of), Iraq, Jordan, Kuwait, Lebanon,
Abdelhak Bedjaoui . . . . . . . . . . . .          Maldives, Oman, Qatar, United Arab Emirates, Yemen (Republic of)
                                                   Afghanistan, Algeria, Ghana, Iran (Islamic Republic of), Libya, Morocco,
Matteo Bugamelli . . . . . . . . . . . . .         Pakistan, Tunisia
Arnaud Buiss . . . . . . . . . . . . . . . .      Albania, Greece, Italy, Malta, Portugal, San Marino, Timor-Leste
Marcos V. Chiliatto . . . . . . . . . . . .        France
                                                   Brazil, Colombia, Dominican Republic, Ecuador, Haiti, Panama,
Nathalie Francken . . . . . . . . . . . . .        Philippines, Suriname, Trinidad and Tobago
                                                   Austria, Belgium, Czechia, Hungary, Kosovo, Luxembourg, Slovak
Olga Fuentes . . . . . . . . . . . . . . . . .     Republic, Slovenia, Trkiye
Vel Gnanendran . . . . . . . . . . . . . .         Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay
Param Iyer . . . . . . . . . . . . . . . . . . .   United Kingdom
Naoya Jinda . . . . . . . . . . . . . . . . . .    Bangladesh, Bhutan, India, Sri Lanka
Zarau Wendeline Kibwe . . . . . . . .              Japan
                                                   Botswana, Burundi, Eritrea, Eswatini, Ethiopia, Gambia (The), Kenya,
Michael Krake . . . . . . . . . . . . . . . .      Lesotho, Liberia, Malawi, Mozambique, Namibia, Rwanda, Seychelles,
Beatrice Maser . . . . . . . . . . . . . . .       Sierra Leone, Somalia (Federal Republic of), South Sudan, Sudan,
                                                   Tanzania, Uganda, Zambia, Zimbabwe
Alexey Morozov                                     Germany
(Alternate) . . . . . . . . . . . . . . . . . . .  Azerbaijan, Kazakhstan, Kyrgyz Republic, Poland, Serbia, Switzerland,
Robert Nicholl . . . . . . . . . . . . . . . .     Tajikistan, Turkmenistan, Uzbekistan

                                                   Belarus, Russian Federation, Syrian Arab Republic
                                                   Australia, Cambodia, Kiribati, Korea (Republic of), Marshall Islands,
                                                   Micronesia (Federated States of), Mongolia, Nauru, New Zealand, Palau,
                                                   Papua New Guinea, Samoa, Solomon Islands, Tuvalu, Vanuatu

                                                   80
Name                                               Countries
Sigrn Rawet . . . . . . . . . . . . . . . . .
Katharine Rechico . . . . . . . . . . . . .        Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden

Eugene Philip Rhuggenaath . . . . .                Antigua and Barbuda, Bahamas (The), Barbados, Belize, Canada,
                                                   Dominica, Grenada, Guyana, Ireland, Jamaica, St. Kitts and Nevis, St.
Suhail A. Saeed . . . . . . . . . . . . . . .      Lucia, St. Vincent and the Grenadines
Wempi Saputra . . . . . . . . . . . . . . .
Teresa Solbes . . . . . . . . . . . . . . . .      Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia,
Harold Tavares . . . . . . . . . . . . . . .       Israel, Moldova, Montenegro, Netherlands, North Macedonia, Romania,
                                                   Ukraine
Peter Wisner . . . . . . . . . . . . . . . . .
Jiandi Ye . . . . . . . . . . . . . . . . . . . .  Saudi Arabia

                                                   Brunei Darussalam, Fiji, Indonesia, Lao People's Democratic Republic,
                                                   Malaysia, Myanmar, Nepal, Singapore, Thailand, Tonga, Viet Nam

                                                   Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain,
                                                   Venezuela (Republica Bolivariana de)

                                                   Benin, Burkina Faso, Cabo Verde, Cameroon, Central African Republic,
                                                   Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of),
                                                   Cote d'Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau,
                                                   Madagascar, Mali, Mauritania, Mauritius, Niger, Sao Tome and Principe,
                                                   Senegal, Togo

                                                   United States

                                                   China

The President is selected by the Executive Directors. Subject to their direction on questions of policy, the
President is responsible for the conduct of the ordinary business of IBRD and for the organization, appointment,
and dismissal of its officers and staff.

The following is a list of the principal officers of the Bank:

President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Ajay Banga
Senior Managing Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               Axel van Trotsenburg
Managing Director of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    Anna Bjerde
Managing Director & WBG Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . .                                  Anshula Kant
Managing Director & WBG Chief Administrative Officer . . . . . . . . . . . . . . . . . .                                     Wencai Zhang
Senior Vice President & WBG General Counsel . . . . . . . . . . . . . . . . . . . . . . . . . .                              Christopher Stephens
WBG Chief Economist & Senior Vice President for Development
                                                                                                                             Indermit Gill
   Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       Akihiko Nishio
Vice President, Development Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chief Information Officer & Vice President, Information & Technology                                                         Amy Doherty
                                                                                                                             Anke D'Angelo
   Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   Antonella Bassani
Vice President & Auditor-General, Internal Audit . . . . . . . . . . . . . . . . . . . . . . . .                             Aradhana Kumar-Capoor
Vice President, Europe, and Central Asia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      Carlos Felipe Jaramillo
Vice President & Corporate Secretary for WBG . . . . . . . . . . . . . . . . . . . . . . . . . .                             Dennis McLaughlin
Vice President, East Asia and Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    Gallina Andronova Vincelette
Vice President & WBG Chief Risk Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          Guangzhe Chen
Vice President, Operations Policy and Country Services . . . . . . . . . . . . . . . . . . .                                 Ibrahim James Pam
Vice President, Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             James Heimbach
Chairperson, Inspection Panel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                Johannes M.C. Zutt
Vice President, WBG External and Corporate Relations . . . . . . . . . . . . . . . . . . . .                                 Jorge Familiar
Vice President, South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             Juergen Voegele
Vice President & Treasurer, WB and Pension Finance Administrator, WBG . . .
Vice President, Planet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                   81
Vice President, Ethics & Internal Justice Services . . . . . . . . . . . . . . . . . . . . . . . .                   Lisa Rosen
Vice President, People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   Mamta Murthi
Vice President, East Asia and Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            Manuela Ferro
Vice President, Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Mouhamadou Diagne
Vice President, Eastern and Southern Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                Ndiame Diop
Secretary, World Bank Accountability Mechanism . . . . . . . . . . . . . . . . . . . . . . .                         Orsolya Melinda Szekely
Vice President, Western and Central Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 Ousmane Diagana
Vice President, Middle East and North Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 Ousmane Dione
Vice President, Prosperity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     Pablo Saaverdra
Vice President & WBG Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     Radi Anguelova
Director-General, Independent Evaluation Group . . . . . . . . . . . . . . . . . . . . . . . . .                     Sabine Bernabe
Vice President, Budget, Performance Review and Strategic Planning . . . . . . . . .                                  Samuel Munzele Maimbo
Vice President, Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             Sangbu Kim
Vice President, Latin America and Caribbean . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  Susana Cordeiro Guerra
Vice President for Finance and WBG Controller . . . . . . . . . . . . . . . . . . . . . . . . .                      Zinga Venner (effective
                                                                                                                     October 1, 2025)

82
                      SECTION XVII: THE ARTICLES OF AGREEMENT

The Articles constitute IBRD's governing charter. They establish the status, privileges and immunities of IBRD,
prescribe IBRD's purposes, capital structure and organization, authorize the operations in which it may engage
and impose limitations on the conduct of those operations. The Articles also contain, among other things,
provisions with respect to the admission of additional members, the increase of the authorized capital stock of
IBRD, the terms and conditions under which IBRD may make or guarantee loans, the use of currencies held by
IBRD, the distribution of net income of IBRD to its members, the withdrawal and suspension of members, and
the suspension of operations of IBRD.

The Articles provide that they may be amended (except for certain provisions the amendment of which requires
acceptance by all members) by consent of three-fifths of the members having 85% of the total voting power. The
Articles further provide that questions of interpretation of provisions of the Articles arising between any member
and IBRD or between members of IBRD shall be decided by the Executive Directors. Their decisions may be
referred by any member to the Board of Governors, whose decision is final. Pending the result of such reference,
IBRD may act on the basis of the decision of the Executive Directors.

The Articles and the decisions made by the Executive Directors on questions of interpretation may be obtained
from IBRD.

          SECTION XVIII: LEGAL STATUS, PRIVILEGES AND IMMUNITIES

The Articles contain provisions which accord to IBRD, in the territories of each of its members, legal status and
certain privileges and immunities. The following is a summary of the more important of these provisions.

IBRD has full juridical personality with capacity to make contracts, to acquire and dispose of property and to sue
and be sued. Actions may be brought against IBRD in a court of competent jurisdiction in territories of any
member in which IBRD has an office, has appointed an agent for accepting service or notice of process or has
issued or guaranteed securities, but no actions against IBRD may be brought by its members or persons acting for
or deriving claims from its members.

The Governors and Executive Directors, and their Alternates, and the officers and employees of IBRD are
immune from legal process for acts performed by them in their official capacity, except when IBRD waives such
immunity.

The archives of IBRD are inviolable. The assets of IBRD are immune from seizure, attachment or execution prior
to delivery of final judgment against IBRD.

IBRD, its assets, property and income, and its operations and transactions authorized by the Articles, are immune
from all taxation and from all customs duties. IBRD is also immune from liability for the collection or payment
of any tax or duty.

The securities issued by IBRD, and the interest thereon are not exempt from taxation generally.

Under the Articles, securities issued by IBRD and the interest thereon are not subject to any tax by a member
(a) which tax discriminates against such securities solely because they are issued by IBRD, or (b) if the sole
jurisdictional basis for the tax is the place or currency in which such securities are issued, made payable or paid,
or the location of any office or place of business maintained by IBRD. Also, under the Articles, IBRD is not
under any obligation to withhold or pay any tax on any interest on such securities.

                                                                   83
SECTION XIX: FISCAL YEAR, ANNOUNCEMENTS, AND ALLOCATION OF NET
                                                   INCOME

FISCAL YEAR
IBRD's fiscal year runs from July 1 to June 30.

ANNOUNCEMENTS
Pursuant to the Articles, IBRD published an annual report containing its audited financial statements and
distributed quarterly financial statements to its members.

ALLOCATION OF NET INCOME
The Board of Governors determines annually what part of IBRD's net income, after making provisions for
reserves, shall be allocated to surplus and what part, if any, shall be distributed. Since its inception, IBRD has
neither declared nor paid any dividend to its member countries. However, IBRD has periodically transferred a
portion of its net income to IDA or to other uses that promote the purpose of IBRD (see Section III of the MD&A
Income Allocation and the Notes to Financial Statements--Note G--Retained Earnings and Board of Governors
Approved Transfers).

                       SECTION XX: FEES TO EXTERNAL AUDITORS

The external auditor is appointed to a five-year term, with a limit of two consecutive terms, and is subject to
annual reappointment based on the recommendation of the Audit Committee and approval of a resolution by the
Board.

In May 2022, IBRD's Board approved Deloitte & Touche LLP (Deloitte) as IBRD's external auditor for a second
five-year term commencing in FY24.

For FY25 and FY24, Deloitte served as IBRD's independent external auditors. The aggregate fees for
professional services rendered for IBRD and IDA by Deloitte for FY25 and FY24 are as follows: $2.9 million for
FY25 audit services ($2.8 million--FY24) and $0.6 million for FY25 audit-related services
($0.9 million--FY24). Audit-related services include accounting consultations concerning financial accounting
and reporting standards. The external auditors may also provide non-prohibited non-audit services subject to
monetary limits. Fees related to non-audit services amounted to $2.2 million for FY25 ($4.2 million for FY24).
IBRD records its share of these fees as part of administrative expenses based on an agreed cost sharing formula.
(See the Notes to the Financial Statements--Note H--Transactions with Affiliated Organizations, for a
description of the allocation of administrative expenses between IBRD and IDA.)

See the Governance section of this Information Statement for additional discussion of auditor independence
matters.

                                                                   84
                                              XXI: APPENDIX

Glossary of Terms
Articles: IBRD's Articles of Agreement
Below GDI Country: Country whose Gross National Income per capita is below the Graduation Discussion
Income as published in the Per Capita Income Guidelines for Operational Purposes.

Board: The Executive Directors as established by IBRD's Articles of Agreement.

Budget Anchor: Efficiency measure that IBRD uses to monitor the coverage of its net administrative expenses
by its loan interest margin.

Capital Adequacy: A measure of IBRD's ability to withstand unexpected shocks and is based on the amount of
IBRD's usable equity expressed as a percentage of its loans and other related exposures.

Credit Default Swaps (CDS): A derivative contract that provides protection against deteriorating credit quality
and allows one party to receive payment in the event of a default or specified credit event by a third party.

Credit Valuation Adjustment (CVA): The CVA represents the counterparty credit risk exposure and is
reflected in the fair value of derivative instruments.

Debit Valuation Adjustment (DVA): DVA on Fair Value Option (FVO) Elected Liabilities that corresponds to
the change in fair value of the liability presented under the FVO that relate to the instrument specific credit risk
("own- credit risk").

Duration: Provides an indication of the sensitivity of underlying yield to changes in interest rates.

Equity-to-Loans Ratio: The Board monitors IBRD's capital adequacy within a Strategic Capital Adequacy
Framework, using the Equity-to-Loans ratio as a key indicator of IBRD's capital adequacy. For details on the
ratio, see Table 33.

Lending Operations: Total projects from a fiscal year based on project approval date as of June 30 of the fiscal
year.

Loan Interest Margin: The difference between loan returns and associated debt cost.

Lower-Middle-Income Countries: For FY25, income groups are classified according to the 2023 gross national
income (GNI) per capita. For lower-middle-income countries, the GNI range was $1,146-$4,515.

Maintenance of Value (MOV): Under IBRD's Articles, members are required to maintain the value of their
subscriptions of national currency paid-in, which is subject to certain restrictions. MOV is determined by
measuring the foreign exchange value of a member's national currency against the standard of value of IBRD's
capital based on the 1974 SDR.

Net Commitments: Commitments net of full terminations and cancellations approved in the same fiscal year
and include guarantee commitments that have been approved by the Executive Directors.

Net Loan Disbursements: Loan disbursements net of repayments and prepayments.

Prudential Minimum: The minimum amount of liquidity that IBRD is required to hold and is defined as 80% of
the Target Liquidity Level.

                                                                   85
Single Borrower Limit (SBL): The maximum authorized exposure to IBRD's most creditworthy and largest
borrowing countries in terms of population and economic size.
Strategic Capital Adequacy Framework: Evaluates IBRD's capital adequacy as measured by stress tests and
an appropriate minimum level for the long-term Equity-to-Loans ratio. The Equity-to-Loans ratio provides a
background framework in the context of annual net income allocation decisions, as well as in the assessment of
the initiatives for the use of capital. The framework has been approved by the Board.
Statutory Lending Limit (SLL): Under IBRD's Articles, as applied, the total amount outstanding of loans,
participations in loans, and callable guarantees may not exceed the sum of unimpaired subscribed capital,
reserves and surplus.
Sustainable Annual Lending Level (SALL): The level of lending that can be sustained in real terms over 10
years.
Target Liquidity Level (TLL): The twelve- month Target Liquidity Level is calculated before the end of each
fiscal year based on Management's estimates of projected net loan disbursements approved at the time of
projection and twelve-month of debt-service for the upcoming fiscal year. This twelve-month estimate becomes
the target for the upcoming fiscal year.
U.S. GAAP: Accounting principles generally accepted in the United States of America.
World Bank: The World Bank consists of IBRD and IDA.
World Bank Group (WBG): The World Bank Group consists of IBRD, IDA, IFC, MIGA, and ICSID.

                                                                   86
Abbreviations and Acronyms                           IPF: Investment Project Financing
AfDB: African Development Bank                       LLP: Loan Loss Provision
AOCI: Accumulated Other Comprehensive Income         LTRRO: Long-Term Real Return Objective
BOG: Board of Governors                              MDB: Multilateral Development Bank
COSO: Committee of Sponsoring Organizations of       MDCAO: Managing Director and World Bank
the Treadway Commission                              Group Chief Administrative Officer
CDS: Credit Default Swaps                            MDCFO: Managing Director and World Bank
CVA: Credit Valuation Adjustment                     Group Chief Financial Officer
CRO: Vice President and WBG Chief Risk Officer       MIGA: Multilateral Investment Guarantee Agency
DDO: Deferred Drawdown Option                        MOV: Maintenance-Of-Value
DPF: Development Project Financing                   NBC: New Business Committee
DVA: Debit Valuation Adjustment                      NCPIC: National Currency Paid-in Capital
EAL: Equitable Access Limit                          ORC: Operational Risk Committee
EDF: Expected default frequency                      PBAC: Pension Benefits Administration Committee
EEA: Exposure Exchange Agreement                     PBO: Pension Benefit Obligation
EFOs: Externally Financed Outputs                    PCRF: Post Retirement Contribution Reserve Fund
ESG: Environmental, Social and Governance            PEBP: Post-Employment Benefit Plan
FIFs: Financial Intermediary Funds                   PFC: Pension Finance Committee
FRC: Finance and Risk Committee                      PforR: Program-for-Results
GCI: General Capital Increase                        RAS: Reimbursable Advisory Services
GDI: Graduation Discussion Income                    RAMP: Reserves Advisory and Management
GNI: Gross National Income                           Partnership
GMFs: Grant-Making Facilities                        RSBP: Retired Staff Benefits Plan
IADB: Inter-American Development Bank                SALL: Sustainable Annual Lending Level
IBRD: International Bank for Reconstruction and      SCI: Selective Capital Increase
Development                                          SDPL: Special Development Policy Loans
ICSID: International Centre for Settlement of        SBL: Single Borrower Limit
Investment Disputes                                  SOFR: Secured Overnight Financing Rate
IFC: International Finance Corporation               SLL: Statutory Lending Limit
IDA: International Development Association           SRP: Staff Retirement Plan
IFFIm: International Finance Facility for
Immunization
IFLs: IBRD Flexible Loans

                                                 87
Eligible Borrowing Member Countries by Region as of June 30, 2025

Region                       Countries

Eastern and Southern Africa  Angola, Botswana, Eswatini*, Kenya*, Mauritius, Namibia, Seychelles, South
                             Africa, Zimbabwe*

Western and Central Africa   Republic of Cabo Verde*, Cameroon*, Republic of Congo*, Equatorial Guinea,
                             Gabon, Nigeria*, Cote d'Ivoire*

East Asia and Pacific        China, Fiji*, Indonesia, Malaysia, Mongolia, Nauru, Palau, Papua New
                             Guinea*, Philippines, Thailand, Timor-Leste*, Viet Nam

Europe and Central Asia      Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria,
                             Croatia, Georgia, Kazakhstan, North Macedonia, Moldova, Montenegro,
                             Poland, Romania, Russian Federation, Serbia, Trkiye, Turkmenistan, Ukraine,
                             Uzbekistan*

Latin America and Caribbean  Argentina, Antigua and Barbuda, Barbados, Belize*, Bolivia, Brazil, Chile,
                             Colombia, Costa Rica, Dominica*, Dominican Republic, Ecuador, El Salvador,
                             Grenada*, Guatemala, Jamaica, Mexico, Panama, Paraguay, Peru, St. Kitts and
                             Nevis, St. Lucia*, St. Vincent and the Grenadines*, Suriname*, Trinidad and
                             Tobago, Uruguay, Venezuela

Middle East and North Africa Algeria, Arab Republic of Egypt, Islamic Republic of Iran, Iraq, Jordan,
                                        Lebanon, Libya, Morocco, Tunisia

South Asia                   India, Pakistan*

* Blend countries eligible for IDA and IBRD loans.

                                                    88
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                             89
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
FINANCIAL STATEMENTS AND INTERNAL CONTROL
REPORTS JUNE 30, 2025

Management's Financial Reporting Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Management's Report Regarding Effectiveness of Internal Control Over Financial Reporting . . . . . . . . . . . . . . . . . . . 92
Independent Auditor's Report on Effectiveness of Internal Control Over Financial Reporting . . . . . . . . . . . . . . . . . . . 94
Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Statements of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Supplementary Information

      Summary Statement of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
      Statement of Subscriptions to Capital Stock and Voting Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

                                                                   90
The World Bank                                         1818 H Street N.W. (202) 477-1234

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT  Washington, D.C. 20433 Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION
                                                       U.S.A.  Cable Address: INDEVAS

            Management's Financial Reporting Assurance

                                                               August 7, 2025

Audit Committee of the Board of Executive Directors
International Bank for Reconstruction and Development

We have reviewed the financial statements for the period ending on June 30, 2025, and the accompanying
management's discussion and analysis of the International Bank for Reconstruction and Development (IBRD)
(collectively, the "Reports"). Based on our knowledge, the Reports do not (1) contain any untrue statement of a
material fact, or (2) omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by the Reports.

Based on our knowledge, the financial statements and other financial information included in the Reports fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows
of IBRD for the periods presented in the Reports.

Management is responsible for establishing and maintaining internal controls and procedures over financial
reporting for IBRD. As part of carrying out these responsibilities, Management has:

       designed internal controls and procedures to ensure that material information required to meet the accuracy
         and completeness standards set forth above with regard to the Reports is recorded, processed, summarized
         and reported in a timely manner, as well as to ensure that such information is accumulated and
         communicated to Management as appropriate to allow timely decisions regarding required disclosure; and

       designed internal control over financial reporting to provide reasonable assurance regarding the reliability of
         financial reporting and the preparation of financial statements for external purposes in accordance with
         generally accepted accounting principles.

Management has evaluated the effectiveness of IBRD's internal controls and procedures as of the date of the
Reports; and presented in management's discussion and analysis its conclusions about the effectiveness of such
controls and procedures, as of the end of the period covered by the Reports, based on such evaluation.
Management has disclosed in the Reports any change in IBRD's internal control over financial reporting that
occurred during the period covered by the Reports that has materially affected, or is reasonably likely to
materially affect, IBRD's internal control over financial reporting.

Further, Management has disclosed, based on its most recent evaluation of internal control over financial
reporting, to IBRD's external auditor and the Audit Committee of IBRD's Board of Executive Directors:

       all significant deficiencies in the design or operation of internal control over financial reporting which are
         reasonably likely to adversely affect IBRD's ability to record, process, summarize, and report financial
         information; and

       any fraud, whether or not material, that involves Management or other employees who have a significant
         role in IBRD's internal control over financial reporting.

Ajay Banga       Anshula Kant
President        Managing Director and
                 World Bank Group Chief Financial Officer

            91
The World Bank                                         1818 H Street N.W.  (202) 477-1234
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
                                                       Washington, D.C. 20433 Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION
                                                       U.S.A.              Cable Address: INDEVAS

                                    Management's Report Regarding Effectiveness of
                                         Internal Control over Financial Reporting

                                                                                                                       August 7, 2025

The management of the International Bank for Reconstruction and Development (IBRD) is responsible for the
preparation, integrity, and fair presentation of its published financial statements. The financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America and
include amounts based on informed judgments and estimates made by management.

The financial statements have been audited by an independent audit firm, which was given unrestricted access to
all financial records and related data, including minutes of all meetings of the Executive Directors and their
Committees. Management believes that all representations made to the independent auditors during their audit of
IBRD's financial statements and audit of its internal control over financial reporting were valid and appropriate.
The independent auditors' reports accompany the audited financial statements.

Management is responsible for establishing and maintaining effective internal control over financial reporting for
financial statement presentations in conformity with accounting principles generally accepted in the United
States of America. Management maintains a comprehensive system of controls intended to ensure that
transactions are executed in accordance with management's authorization, assets are safeguarded, and financial
records are reliable. The system of internal control contains monitoring mechanisms, and actions are taken to
correct deficiencies identified. Management believes that internal control over financial reporting supports the
integrity and reliability of the external financial statements.

There are inherent limitations in the effectiveness of any internal control, including the possibility of human error
and the circumvention or overriding of controls. Accordingly, even effective internal controls can provide only
reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions,
the effectiveness of internal controls may vary over time.

IBRD assessed its internal control over financial reporting for financial statement presentation in conformity with
accounting principles generally accepted in the United States of America as of June 30, 2025. This assessment
was based on the criteria for effective internal control over financial reporting described in the Internal Control-
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based upon this assessment, management believes that IBRD maintained effective internal control
over financial reporting presented in conformity with accounting principles generally accepted in the United
States of America as of June 30, 2025. The independent audit firm that audited the financial statements has
issued an Independent Auditor's Report which expresses an opinion on IBRD's internal control over financial
reporting.

The Executive Directors of IBRD have appointed an Audit Committee responsible for monitoring the accounting
practices and internal controls of IBRD. The Audit Committee is comprised entirely of Executive Directors who
are independent of IBRD's management. The Audit Committee is responsible for recommending to the
Executive Directors the selection of independent auditors. It meets periodically with management, the
independent auditors, and the internal auditors to ensure that they are carrying out their responsibilities. The
Audit Committee is responsible for performing an oversight role by reviewing and monitoring the financial.
accounting and auditing procedures of IBRD in addition to reviewing IBRD's financial reports. The independent
auditors and the internal auditors have full and free access to the Audit Committee, with or without the presence

                                                                   92
of management, to discuss the adequacy of internal control over financial reporting and any other matters which
they believe should be brought to the attention of the Audit Committee.

                                                             Ajay Banga
                                                               President
                                                            Anshula Kant
                           Managing Director and World Bank Group Chief Financial Officer
                                                         Pamela O'Connell
                                      Vice President and World Bank Group Controller

                                                                   93
                                                       Deloitte & Touche LLP
                                                       7900 Tysons One Place
                                                       Suite 800
                                                       McLean, VA 22102
                                                       USA
                                                       Tel.: +1 703 251 1000
                                                       Fax: +1 703 251 3400
                                                       www.deloitte.com

INDEPENDENT AUDITOR'S REPORT

President and Board of Executive Directors
International Bank for Reconstruction and Development

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of the International Bank for Reconstruction and
Development ("IBRD") as of June 30, 2025, based on the criteria established in the Internal Control--Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, IBRD maintained, in all material respects, effective internal control over financial reporting as of
June 30, 2025, based on criteria established in Internal Control -- Integrated Framework (2013) issued by
COSO.

We also have audited, in accordance with auditing standards generally accepted in the United States of America
(GAAS), the financial statements as of and for the year ended June 30, 2025 of IBRD, and our report dated
August 7, 2025, expressed an unmodified opinion on those financial statements.

Basis for Opinion

We conducted our audit in accordance with GAAS. Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of Internal Control over Financial Reporting section of
our report. We are required to be independent of IBRD and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for Internal Control over Financial Reporting

Management is responsible for designing, implementing, and maintaining effective internal control over financial
reporting, and for its assessment about the effectiveness of internal control over financial reporting, included in
the accompanying Management's Report Regarding Effectiveness of Internal Control over Financial Reporting.

Auditor's Responsibilities for the Audit of Internal Control over Financial Reporting
Our objectives are to obtain reasonable assurance about whether effective internal control over financial
reporting was maintained in all material respects and to issue an auditor's report that includes our opinion on
internal control over financial reporting. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit of internal control over financial reporting conducted in
accordance with GAAS will always detect a material weakness when it exists.

In performing an audit of internal control over financial reporting in accordance with GAAS, we:
        Exercise professional judgment and maintain professional skepticism throughout the audit.

                                                                   94
        Obtain an understanding of internal control over financial reporting, assess the risks that a material
            weakness exists, and test and evaluate the design and operating effectiveness of internal control over
            financial reporting based on the assessed risk.

Definition and Inherent Limitations of Internal Control over Financial Reporting
An entity's internal control over financial reporting is a process effected by those charged with governance,
management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable
financial statements in accordance with accounting principles generally accepted in the United States of America.
An entity's internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of
the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with accounting principles generally accepted in the United
States of America, and that receipts and expenditures of the entity are being made only in accordance with
authorizations of management and those charged with governance; and (3) provide reasonable assurance
regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the
entity's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and
correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.

August 7, 2025

                                                                   95
                                                       Deloitte & Touche LLP
                                                       7900 Tysons One Place
                                                       Suite 800
                                                       McLean, VA 22102

                                                       USA

                                                       Tel.: +1 703 251 1000
                                                       Fax: +1 703 251 3400
                                                       www.deloitte.com

INDEPENDENT AUDITOR'S REPORT

President and Board of Executive Directors
International Bank for Reconstruction and Development

Opinion

We have audited the financial statements of the International Bank for Reconstruction and Development
("IBRD"), which comprise the balance sheets as of June 30, 2025 and 2024, and the related statements of
income, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended
June 30, 2025, and the related notes to the financial statements (collectively referred to as the "financial
statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of IBRD as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the
three years in the period ended June 30, 2025, in accordance with accounting principles generally accepted in the
United States of America.

We have also audited, in accordance with auditing standards generally accepted in the United States of America
(GAAS), IBRD's internal control over financial reporting as of June 30, 2025, based on criteria established in
Internal Control -- Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the
Treadway Commission and our report dated August 7, 2025, expressed an unmodified opinion on IBRD's
internal control over financial reporting.

Basis for Opinion

We conducted our audits in accordance with GAAS. Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are
required to be independent of IBRD and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or
error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about IBRD's ability to continue as a going concern for
one year after the date that the financial statements are issued.

                                                                   96
Independent Auditor's Report

Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
        Exercise professional judgment and maintain professional skepticism throughout the audit.
        Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
            or error, and design and perform audit procedures responsive to those risks. Such procedures include
            examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
        Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
            are appropriate in the circumstances.
        Evaluate the appropriateness of accounting policies used and the reasonableness of significant
            accounting estimates made by management, as well as evaluate the overall presentation of the financial
            statements.
        Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
            raise substantial doubt about IBRD's ability to continue as a going concern for a reasonable period of
            time.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that
we identified during the audit.

Report on Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The
supplementary information listed in the table of contents is presented for the purpose of additional analysis and is
not a required part of the financial statements. This supplementary information is the responsibility of IBRD's
management and was derived from and relates directly to the underlying accounting and other records used to
prepare the financial statements. Such information has been subjected to the auditing procedures applied in our
audits of the financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial statements or to
the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion,
such information is fairly stated in all material respects in relation to the financial statements as a whole.

                                                                   97
Independent Auditor's Report
Other Information Included in Management's Discussion & Analysis and Financial Statements
Management is responsible for the other information included in Management's Discussion & Analysis and
Financial Statements. The other information comprises the information included in Management's Discussion &
Analysis but does not include the financial statements and our auditor's report thereon. Our opinion on the
financial statements does not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audits of the financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our
report.
August 7, 2025

                                                                   98
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
FINANCIAL STATEMENTS
June 30, 2025

                                                                   99
BALANCE SHEETS

June 30, 2025 and June 30, 2024

Expressed in millions of U.S. dollars

                                                                                                                                           2025      2024

Assets

Due from banks--Notes C and J

Unrestricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 412 $ 410

Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  73        80

                                                                                                                                           485       490

Investments-Trading (including securities transferred under repurchase or securities                                                       102,674   82,728
   lending agreements of $312 million--June 30, 2025 and $255 million --June 30,                                                                 14       79
   2024)--Notes C and J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 666     456

Securities purchased under resale agreements--Notes C and J . . . . . . . . . . . . . . . . . . . .                                              84     438
Derivative assets, net--Notes C, F and J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          3,562   4,022
Receivables

      Receivable from investment securities traded--Note C . . . . . . . . . . . . . . . . . . . . . . . .
      Accrued income on loans and guarantee fees receivable--Note D . . . . . . . . . . . . . . .

                                                                                                                                           3,646 4,460

Loans outstanding--Notes D, H and J                                                                                                        375,435 348,248
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  (92,345) (85,058)

      Less: Undisbursed balance (including signed loan commitments of
         $76,870 million--June 30, 2025 and $66,761 million--June 30, 2024) . . . . . . . . .

      Loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  283,090 263,190
Less:
                                                                                                                                             (2,366) (2,360)
      Accumulated provision for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  (681) (594)
      Deferred loan income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,043 260,236

Other assets                                                                                                                               8,041     4,655
      Assets under retirement benefits plans--Notes I and K . . . . . . . . . . . . . . . . . . . . . . . .                                1,866     1,842
      Premises and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2,076     1,666
      Miscellaneous--Notes D,H,J and L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                                                                                                           11,983 8,163

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $399,511 $356,612

                                       100
BALANCE SHEETS

June 30, 2025 and June 30, 2024

Expressed in millions of U.S. dollars

                                                                                                                                          2025        2024

Liabilities                                                                                                                               $ 305,679   $ 261,790
Borrowings--Notes E and J                                                                                                                        482         --

      Borrowings, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Borrowings, at amortized cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                                                                                                          306,161 261,790

Securities sold under repurchase agreements, securities lent under securities lending                                                        312         256
   agreements, and payable for cash collateral received--Notes C and J . . . . . . . . . . . .                                            12,454      22,728

Derivative liabilities, net--Notes C, F and J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            199         561
Other liabilities                                                                                                                          2,070       2,097
                                                                                                                                           6,303       5,696
      Payable for investment securities purchased--Note C . . . . . . . . . . . . . . . . . . . . . . . .
      Liabilities under retirement benefits plans--Notes I and K . . . . . . . . . . . . . . . . . . . .
      Accounts payable and miscellaneous liabilities--Notes D, H, J and L . . . . . . . . . . .

                                                                                                                                          8,572       8,354

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,499 293,128

Equity                                                                                                                                     326,835 323,072
Capital stock--Note B                                                                                                                     (303,924) (300,620)

            Authorized capital (2,783,873 shares--June 30, 2025 and June 30, 2024)
            Subscribed capital (2,709,291 shares--June 30, 2025, and 2,678,098

               shares--June 30, 2024) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
            Less uncalled portion of subscriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       22,911      22,452
Nonnegotiable, noninterest-bearing demand obligations on account of subscribed
                                                                                                                                            (313)       (310)
   capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (623)       (895)
Receivable and deferred amounts to maintain value of currency holdings--Note B . . .                                                      40,383      38,283
Retained earnings--Note G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    9,654       3,954
Accumulated other comprehensive income--Note I . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,012 63,484

Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 399,511 $ 356,612

The Notes to Financial Statements are an integral part of these Statements.

                                       101
STATEMENTS OF INCOME

For the fiscal years ended June 30, 2025, June 30, 2024 and June 30, 2023

Expressed in millions of U.S. dollars

                                                                                                                          2025     2024     2023

Interest revenue                                                                                                          $ 15,301 $ 15,831 $10,522
      Loans, net--Note D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other asset/liability management derivatives, net--Notes F and J . . . . . . .                                      (1,293) (1,726) (850)
      Investments-Trading, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,444 4,337 3,079

Borrowing expenses, net--Note E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         2        2        2

                                                                                                                          (14,920) (15,215) (9,562)

Interest revenue, net of borrowing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,534 3,229 3,191

Provision for losses on loans and other exposures, release

(charge)--Note D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            75       (94) (685)

Non-interest revenue

Revenue from externally funded activities--Notes H and L . . . . . . . . . . . . .                                        947      960      878

Commitment charges--Note D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          152      149      124

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        170      42       43

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,269 1,151 1,045

Non-interest expenses                                                                                                     (2,522)  (2,379) (2,320)
      Administrative--Notes H, K and L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       (17)
      Contributions to special programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    150   (17) (17)
      Other--Note K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                   170      183

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,389) (2,226) (2,154)

Board of Governors-approved transfers--Note G . . . . . . . . . . . . . . . . . . . . . . . .                               (815)  (371)    (221)
Currency remeasurement (losses) gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           (44)    73       39
Unrealized mark-to-market gains on Investments-Trading portfolio,
                                                                                                                             214   91       84
   net--Notes F and J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized mark-to-market gains (losses) on non-trading portfolios, net                                                   (1,372)  (458)     1,677
                                                                                                                           1,839    708     (1,642)
      Loan-related derivatives--Notes D, F and J . . . . . . . . . . . . . . . . . . . . . . . . .                          (234)
      Other asset/liability management derivatives, net--Notes F and J . . . . . . .                                                   9      (190)
      Borrowings, including derivatives--Notes E, F and J . . . . . . . . . . . . . . . . .                                   23     30        --
      Others, net--Note J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             256      289 (155)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,100 $ 2,142 $ 1,144

The Notes to Financial Statements are an integral part of these Statements.

                      102
STATEMENTS OF COMPREHENSIVE INCOME

For the fiscal years ended June 30, 2025, June 30, 2024 and June 30, 2023

Expressed in millions of U.S. dollars

                                                                                                                                  2025     2024     2023

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $2,100   $2,142 $1,144
Other comprehensive income--Note I
                                                                                                                                   3,420   251 2,103
      Net actuarial gains on benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      8
      Prior service credit on benefit plans, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 8  20
      Net change in Debit Valuation Adjustment (DVA) on Fair Value Option elected                                                    991
                                                                                                                                   1,281    322 (13)
         liabilities--Note J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               (150) 495
      Currency translation adjustments on functional currency gains (losses) . . . . . . . .

Total other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,700 431 2,605

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,800 $2,573 $3,749

103
STATEMENTS OF CHANGES IN EQUITY

For the fiscal years ended June 30, 2025, June 30, 2024 and June 30, 2023

Expressed in millions of U.S. dollars

                                                                Paid-in   Nonnegotiable,  Receivable  Retained   Accumulated   Total
                                                                Capital    noninterest-       and     earnings       other     equity
                                                                              bearing
                                                                              demand       deferred             comprehensive
                                                                          obligations on  amounts to                income
                                                                            account of     maintain
                                                                            subscribed
                                                                               capital     value of
                                                                                           currency
                                                                                           holdings

As of June 30, 2022 . . . . . . . . . . . . . . . .             $20,499   $(316)          $(778)      $34,997   $ 918          $55,320
Net income . . . . . . . . . . . . . . . . . . . . . . .             --     --              --           1,144     --             1,144
Other comprehensive income . . . . . . . . .                         --     --              --             --                     2,605
Subscriptions received . . . . . . . . . . . . . . .                        --              --             --    2,605            1,320
Demand obligations (received) encashed,                            1,320                                           --
                                                                              (8)         --          --                              (8)
   net . . . . . . . . . . . . . . . . . . . . . . . . . . . .       --        4                                   --               (15)
Currency remeasurement changes, net . .                              --     --            (19)        --           --                16
Receipts of MOV . . . . . . . . . . . . . . . . . . .                --                                            --
                                                                                          16          --

As of June 30, 2023 . . . . . . . . . . . . . . . .             21,819         (320)      (781)       36,141    3,523          60,382
Net income . . . . . . . . . . . . . . . . . . . . . . .           --           --         --          2,142      --            2,142
Other comprehensive income . . . . . . . . .                       --           --         --                     431
Subscriptions received . . . . . . . . . . . . . . .               633          --         --            --       --              431
Demand obligations (received) encashed,                                                                  --                       633
                                                                   --           --                                --
   net . . . . . . . . . . . . . . . . . . . . . . . . . . . .     --            10       --          --          --              --
Currency remeasurement changes, net . .                            --                                             --             (122)
Receipts of MOV . . . . . . . . . . . . . . . . . . .                           --        (132)       --
                                                                                                                                    18
                                                                                          18          --

As of June 30, 2024 . . . . . . . . . . . . . . . .             22,452         (310)      (895)       38,283    3,954          63,484
Net income . . . . . . . . . . . . . . . . . . . . . . .           --           --         --          2,100      --            2,100
Other comprehensive income . . . . . . . . .                       --           --         --                                   5,700
Subscriptions received . . . . . . . . . . . . . . .               459          --         --            --     5,700
Demand obligations (received) encashed,                                                                  --       --              459
                                                                   --             (2)
   net . . . . . . . . . . . . . . . . . . . . . . . . . . . .     --             (1)     --          --          --                (2)
Currency remeasurement changes, net . .                            --           --                                --              257
Receipts of MOV . . . . . . . . . . . . . . . . . . .                                     258         --          --                14

                                                                                          14          --

As of June 30, 2025 . . . . . . . . . . . . . . . . $22,911 $(313) $(623) $40,383 $9,654 $72,012

The Notes to Financial Statements are an integral part of these Statements.

                                                                          104
STATEMENTS OF CASH FLOWS

For the fiscal years ended June 30, 2025, June 30, 2024 and June 30, 2023

Expressed in millions of U.S. dollars

                                                                                                                                                                2025         2024       2023

Cash flows from investing activities                                                                                                                            $(30,471)   $(33,375)   $(25,465)
      Loans                                                                                                                                                       15,456      12,991      12,296
            Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           529         344         472
            Principal repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               34          37          27
            Principal prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                84          76          66
            Loan origination fees received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   (246)       (154)       (141)
      Net derivatives-loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other investing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         (14,614) (20,081) (12,745)

                  Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  64,300 52,152 42,056
                                                                                                                                                                (37,220) (30,888) (30,275)
Cash flows from financing activities
      Medium and long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    26,573       20,483     25,358
            New issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (23,076)     (22,270)   (25,846)
            Retirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            (4,716)
      Short-term borrowings (original maturities greater than 90 days)                                                                                              419          807
            New issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          88           10      (787)
            Retirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       459          633      1,320
      Net short-term borrowings (original maturities less than 90 days) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     (6)        --
      Net derivatives-borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        (5)
      Capital subscriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      31,537       20,927
      Other financing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                   7,105

                  Net cash provided by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     2,100 2,142 1,144

Cash flows from operating activities                                                                                                                            (256)        (289)      155
      Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Adjustments to reconcile net income to net cash (used in) provided by operating activities:                                                               44           (73)       (39)
                  Unrealized mark-to-market (gains) losses on non-trading portfolios, net . . . . . . . . . . . . . . .
                  Currency remeasurement losses (gains), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        419          614        535
                  Depreciation and amortization and capitalized interest on loans, net . . . . . . . . . . . . . . . . . . .
                  Provision for losses on loans and other exposures, (release) charge . . . . . . . . . . . . . . . . . . .                                     (75)         94         685
      Changes in:
            Investments-Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         (17,200)     (4,288)    3,173
            Net investment securities purchased/traded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            24       (410)      608
            Net derivatives-investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           1,063      (826)
            Net securities purchased/sold under resale/repurchase agreements and payable for cash                                                                (1,200)
               collateral received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
            Accrued income on loans and guarantee fees receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     132     128          (94)
            Miscellaneous assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              549    (676)      (2,230)
            Accrued interest on borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     (373)    232
            Accounts payable and miscellaneous liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           (1,704)    393            (4)
            Pension and other post-retirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          593     232        2,051

                  Net cash (used in) provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  15     (59)         463
                                                                                                                                                                                            86
Effect of exchange rate changes on unrestricted and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        (16,932)
                                                                                                                                                                             (897) 5,707
Net (decrease) increase in unrestricted and restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        4
Unrestricted and restricted cash at the beginning of the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                 (6)              1
                                                                                                                                                                        (5)
Unrestricted and restricted cash at the end of the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    490    (57)       68

                                                                                                                                                                $ 485 $      547        479

                                                                                                                                                                             490 $ 547

Supplemental disclosure                                                                                                                                         $ 5,105     $ (822) $ 1,817
      Increase (decrease) in ending balances resulting from exchange rate fluctuations                                                                                231
            Loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    17               4
            Investment portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            4,148
            Borrowing portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               308    (577) 1,397
      Capitalized interest and loan origination fees included in total loans . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Interest paid on borrowing portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                16,046     155        73

                                                                                                                                                                             14,265 6,948

The Notes to Financial Statements are an integral part of these Statements.

                                       105
SUMMARY STATEMENT OF LOANS

June 30, 2025

Expressed in millions of U.S. dollars

                                                                                                     Undisbursed balance

Borrower                                                                            Total loans a,b      Loans                       Loans      Percentage of
                                                                                                     approved but Signed loan     Outstanding     total loans
Albania b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $ 1,679         not yet signed commitment c
Angola a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            7,621                                   $ 1,055       outstanding d
Antigua and Barbuda . . . . . . . . . . . . . . . . . . . . . . . . .                           4    $--       $ 624                   4,904
Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            15,748           250     2,467                      4       0.37%
Armenia b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1,494           --        --                12,121         1.73
                                                                                                          230     3,397                1,101
Azerbaijan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              1,289           196       197                                 *
Bahamas, The . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    100                                           956        4.28
Barbados . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                303      --        333                        100        0.39
Belarus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                           219
Belize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          1,012      --        --                      1,012         0.34
                                                                                            111                                            41        0.04
Bolivia, Plurinational State of a . . . . . . . . . . . . . . . . .                                  30        54                                    0.08
Bosnia and Herzegovina b . . . . . . . . . . . . . . . . . . . . .                        1,568                                           947        0.36
Botswana a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              1,481      --        --                         837        0.02
Brazil b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          666
Bulgaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              784      --        70                     15,383         0.33
                                                                                         21,795                                                      0.30
Cabo Verde, Republic of . . . . . . . . . . . . . . . . . . . . . .                                    --        621                       67        0.24
Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    67        94       550                                 5.43
Chile a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  118                       40        0.02
China b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               40       --      2,154                      877
Colombia a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              1,159      4,258       --                       167        0.01
                                                                                                                                      14,345         0.31
Congo, Republic of . . . . . . . . . . . . . . . . . . . . . . . . . .                      900        --                             16,570         0.06
Costa Rica a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             19,775                                                      5.07
Cte d'Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              18,077      --                   *               271        5.85
Croatia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                        1,485
Dominican Republic a . . . . . . . . . . . . . . . . . . . . . . . .                        551      --        282                                   0.10
                                                                                          3,154                                           180        0.52
Ecuador a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        150       583                     1,298         0.06
Egypt, Arab Republic of b . . . . . . . . . . . . . . . . . . . . .                         180                                        2,354         0.46
El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1,785      764       4,666                                 0.83
Eswatini . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            3,703                                        6,343
Fiji . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   700       807                    12,580         2.24
                                                                                          7,018                                        1,017         4.44
Gabon a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            14,510      --        280                                   0.36
Georgia b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             2,188                                           324        0.11
Grenada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        335       1,334                      179        0.06
Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 429
India b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             204      --                   *               657        0.23
                                                                                                                                       1,757         0.62
Indonesia b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               988      --        487
Iran, Islamic Republic of . . . . . . . . . . . . . . . . . . . . . .                     2,346                                            13           *
Iraq b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     --        1,349                   2,098         0.74
Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 14                                      24,586         8.69
Jordan b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2,524      --        675
                                                                                         34,455                                       21,345         7.54
Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           --        1,930                      139        0.05
Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            29,799                                                      0.95
Kosovo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                139      120       1,051                   2,696         0.39
Lebanon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          1,101         2.03
Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             4,047      65        40                      5,739
                                                                                          1,229                                                      1.33
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            8,016      --        25                      3,779         0.72
Moldova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                            2,025         0.03
Mongolia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              4,645      163       168                                   0.40
Montenegro b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2,028                                            86        0.03
Morocco b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          --        589                     1,137
                                                                                              86                                                     4.88%
                                                                                          2,294      --                   1                88        0.12
                                                                                                                                                     0.02
                                                                                            272      400       26                 $ 13,827           0.10
                                                                                                                                          337        4.28
                                                                                     $ 13,827        910       8,959                       56
                                                                                            862                                           295
                                                                                            280      2,226     6,228
                                                                                            380        --        --                   12,109
                                                                                                       930       421
                                                                                         16,506        --        128
                                                                                                       --
                                                                                                               2,277

                                                                                                     655       211

                                                                                                     --                   3

                                                                                                     --        --

                                                                                                     250       907

                                                                                                     --        184

                                                                                                     $--       $--
                                                                                                          --        525
                                                                                                          --        224
                                                                                                          --          85
                                                                                                          619
                                                                                                                  3,778

                                                                                    106
SUMMARY STATEMENT OF LOANS (Continued)

June 30, 2025

Expressed in millions of U.S. dollars

                                                                                                   Undisbursed balance

Borrower                                                                          Total loans a,b      Loans                       Loans      Percentage of
                                                                                                   approved but Signed loan     Outstanding     total loans
Namibia a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             100      not yet signed commitment c
Nigeria a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2,916                                           --    outstanding d
North Macedonia b . . . . . . . . . . . . . . . . . . . . . . . . . .                              --   100                          1,346
Pakistan b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            966                                                         *
Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            5,227      --   1,570                           739        0.48
                                                                                        2,093                                        2,819         0.26
Papua New Guinea . . . . . . . . . . . . . . . . . . . . . . . . . .                               17   210                          1,965         1.00
Paraguay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                80                                                     0.70
Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1,449      --   2,408                              4
Philippines b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             7,135                                        1,126            *
Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         19,612      --   128                          5,558         0.40
                                                                                        5,882                                       15,521         1.96
Romania b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        --   76                           5,735         5.48
Serbia b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          8,134                                                      2.03
Seychelles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            3,392      --   323                          6,767
South Africa a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                           2,528         2.39
Sri Lanka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             208      650  927                                        0.89
                                                                                        5,445                                           182        0.07
St. Lucia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           1,230      --   4,091                        3,508         1.24
Suriname . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                         1,059         0.37
Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2    --   147
Timor-Leste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 58                                             2          *
Trinidad and Tobago a . . . . . . . . . . . . . . . . . . . . . . . .                     458      --   1,367                            31        0.01
                                                                                            12                                          458        0.16
Tunisia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             20     --   864                              12
Trkiye b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                            20           *
Turkmenistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              6,660      8    18                                         0.01
Ukraine b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          25,217                                        4,781
Uruguay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      --   1,937                       13,408         1.69
                                                                                            20                                                     4.74
Uzbekistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           17,505      --   171                              20        0.01
Viet Nam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            1,500                                       16,864         5.96
Zimbabwe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         --   --                           1,441         0.51
                                                                                        3,634
Total-June 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . .                   2,588      --   27                           3,377         1.19
                                                                                                                                     2,080         0.74
Total-June 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . .                     426      --   --                                         0.15
                                                                                                                                        426
                                                                                   $ 375,435       --   --                                         100%
                                                                                                                                $ 283,090
                                                                                   $ 348,248       --   --
                                                                                                                                $ 263,190
                                                                                                   568  1,311

                                                                                                   887  10,922

                                                                                                   --   --

                                                                                                   --   641

                                                                                                   --   59

                                                                                                   --   257

                                                                                                   --   508

                                                                                                   --   --

                                                                                                   $ 15,475 $ 76,870

                                                                                                   $ 18,297 $ 66,761

Notes

a. Indicates a country for which a guarantee is provided under an Exposure Exchange Agreement (EEA) with a
      multilateral development organization (see Note D--Loans and Other Exposures). The amount of the guarantees
      is not included in the figures in the Statement above.

b. Indicates a country for which a guarantee has been received, under an EEA with a multilateral development
      organization or from another guarantee provider (see Note D--Loans and Other Exposures). The effect of the
      guarantee is not included in the figures in the Statement above.

c. Loan agreements totaling $6,656 million ($7,624 million--June 30, 2024) have been signed, but the loans are not
      effective and disbursements do not start until the borrowers and/or guarantors take certain actions and furnish
      documents.

d. May differ from the calculated figures or sum of individual figures shown due to rounding.
* Indicates amount less than $0.5 million or 0.005%

The Notes to Financial Statements are an integral part of these Statements.
                                            107
STATEMENT OF SUBSCRIPTIONS TO
CAPITAL STOCK AND VOTING POWER

June 30, 2025

Expressed in millions of U.S. dollars

                                                                 Subscriptions                             Voting Power

Member                                   Number of  Percentage         Total     Amounts       Amounts     Number of  Percentage
                                           shares    of total a     amounts a   paid in a,b   subject to      votes    of total a
Afghanistan . . . . . . . . . . .
Albania . . . . . . . . . . . . . .            506     0.02%      $ 61.0        $ 5.1           call a, b      1,348     0.05%
Algeria . . . . . . . . . . . . . . .        1,355     0.05            163.5          8.5                      2,197     0.08
Angola . . . . . . . . . . . . . . .       13,689      0.51                                  $ 55.9          14,531      0.51
Antigua and Barbuda . . . .                  4,068     0.15          1,651.4       118.4          154.9        4,910     0.17
                                                       0.02            490.7         28.8                      1,501     0.05
Argentina . . . . . . . . . . . . .            659                       79.5         2.3       1,533.0
Armenia . . . . . . . . . . . . . .                    1.07                                       461.9      29,739      1.04
Australia c . . . . . . . . . . . .        28,897      0.07          3,486.0       235.6           77.2        2,848     0.10
Austria c . . . . . . . . . . . . . .        2,006     1.44            242.0         13.8                    39,896      1.39
Azerbaijan . . . . . . . . . . . .         39,054      0.67                        342.1        3,250.4      18,985      0.66
                                           18,143      0.11          4,711.3       157.4          228.2        3,718     0.13
Bahamas, The . . . . . . . . .               2,876                   2,188.7         21.1
Bahrain . . . . . . . . . . . . . .                    0.06                                     4,369.1        2,345     0.08
Bangladesh . . . . . . . . . . .             1,503     0.06            346.9         10.3       2,031.3        2,490     0.09
Barbados . . . . . . . . . . . . .           1,648     0.29                          11.9                      8,726     0.30
Belarus . . . . . . . . . . . . . . .        7,884     0.03            181.3         65.1         325.9        1,790     0.06
                                                       0.17            198.8          4.5                      5,389     0.19
Belgium c . . . . . . . . . . . . .            948                     951.1         34.6         171.1
Belize . . . . . . . . . . . . . . . .       4,547     1.60            114.4                      186.9      44,123      1.54
Benin . . . . . . . . . . . . . . . .                  0.02            548.5       380.0          886.0        1,488     0.05
Bhutan . . . . . . . . . . . . . . .       43,281      0.06                           3.1         109.9        2,378     0.08
Bolivia, Plurinational                         646     0.03          5,221.2         10.0         513.9        1,671     0.06
                                                                         77.9         4.2
   State of . . . . . . . . . . . . .        1,536                     185.3                    4,841.2
                                               829                     100.0                       74.8
Bosnia and                                                                                        175.3
   Herzegovina . . . . . . . . .                                                                   95.8

Botswana . . . . . . . . . . . . .       2,846 0.11                   343.3     18.9         324.4         3,688 0.13
Brazil . . . . . . . . . . . . . . . .
Brunei Darussalam . . . . .                   980 0.04             118.2         10.3          107.9          1,822 0.06
Bulgaria . . . . . . . . . . . . . .          916 0.03             110.5           5.4         105.1          1,758 0.06
                                          53,509 1.98            6,455.1        386.8        6,068.3        54,351 1.89
Burkina Faso . . . . . . . . . .            2,373 0.09             286.3         15.2          271.1          3,215 0.11
Burundi . . . . . . . . . . . . . .         7,609 0.28             917.9         64.5          853.4          8,451 0.29
Cabo Verde, Republic                        1,519 0.06                                                        2,361 0.08
                                            1,043 0.04             183.2           9.7         173.5          1,885 0.07
   of . . . . . . . . . . . . . . . . .                            125.8           4.6         121.3
Cambodia . . . . . . . . . . . . .            729 0.03                                                        1,571 0.05
Cameroon . . . . . . . . . . . .              619 0.02              87.9           2.3          85.7          1,461 0.05
                                            2,202 0.08              74.7           6.4          68.3          3,044 0.11
Canada c . . . . . . . . . . . . . .      70,455 2.60              265.6         12.4          253.3        71,297 2.49
Central African
                                              975 0.04           8,499.3        619.5        7,879.8          1,817 0.06
   Republic . . . . . . . . . . . .           975 0.04                                                        1,817 0.06
Chad . . . . . . . . . . . . . . . . .    11,787 0.44               117.6            3.9        113.8       12,629 0.44
Chile . . . . . . . . . . . . . . . .    166,859 6.16               117.6            3.9        113.8      167,701 5.85
China . . . . . . . . . . . . . . . .                             1,421.9         101.3       1,320.7
                                                                 20,129.0       1,445.1      18,683.9

                                                                 108
STATEMENT OF SUBSCRIPTIONS TO
CAPITAL STOCK AND VOTING POWER (Continued)

June 30, 2025

Expressed in millions of U.S. dollars

                                                                  Subscriptions                             Voting Power

Member                                    Number of  Percentage         Total     Amounts       Amounts     Number of  Percentage
                                            shares    of total a     amounts a   paid in a,b   subject to      votes    of total a
Colombia . . . . . . . . . . . . .
Comoros . . . . . . . . . . . . .           11,806      0.44%      $ 1,424.2     $ 101.2         call a, b    12,648      0.44%
Congo, Democratic                               369     0.01              44.5         1.0                      1,211     0.04
                                                                                              $ 1,323.0
   Republic of . . . . . . . . .                                                                    43.5
Congo, Republic of . . . . .
Costa Rica . . . . . . . . . . . .         3,416 0.13               412.1         31.0          381.1        4,258 0.15
                                           1,051 0.04               126.8           4.3         122.4        1,893 0.07
Cte d'Ivoire . . . . . . . . . .          1,392 0.05               167.9         12.3          155.6        2,234 0.08
Croatia . . . . . . . . . . . . . . .
Cyprus . . . . . . . . . . . . . . .       4,270 0.16               515.1         33.3          481.9        5,112 0.18
Czechia c . . . . . . . . . . . . .        3,376 0.12               407.3         29.9          377.4        4,218 0.15
Denmark c . . . . . . . . . . . .          2,111 0.08               254.7         16.0          238.6        2,953 0.10
                                           9,451 0.35             1,140.1         82.0        1,058.2       10,293 0.36
Djibouti . . . . . . . . . . . . . .      21,061 0.78             2,540.7        182.4        2,358.3       21,903 0.76
Dominica . . . . . . . . . . . . .
Dominican Republic . . . .                   801 0.03                96.6           2.8          93.8        1,643 0.06
Ecuador . . . . . . . . . . . . . .          699 0.03                84.3           3.5          80.8        1,541 0.05
Egypt, Arab Republic                       3,142 0.12               379.0         25.1          353.9        3,984 0.14
                                           3,828 0.14               461.8         24.1          437.7        4,670 0.16
   of . . . . . . . . . . . . . . . . .
                                           10,682 0.39             1,288.6          76.8       1,211.8       11,524 0.40
El Salvador . . . . . . . . . . .
Equatorial Guinea . . . . . .                  552 0.02                66.6           5.5          61.1        1,394 0.05
Eritrea . . . . . . . . . . . . . . .          715 0.03                86.3           2.7          83.5        1,557 0.05
Estonia c . . . . . . . . . . . . . .          593 0.02                71.5           1.8          69.7        1,435 0.05
Eswatini . . . . . . . . . . . . . .         1,372 0.05              165.5            9.5        156.1         2,214 0.08
                                               609 0.02                73.5           3.7          69.8        1,451 0.05
Ethiopia . . . . . . . . . . . . . .
Fiji . . . . . . . . . . . . . . . . . .     1,470 0.05              177.3            8.3        169.1         2,312 0.08
Finland c . . . . . . . . . . . . . .        1,407 0.05              169.7            9.8        159.9         2,249 0.08
France c . . . . . . . . . . . . . .       13,726 0.51             1,655.8         118.5       1,537.3       14,568 0.51
Gabon . . . . . . . . . . . . . . .       108,611 4.01            13,102.3         956.6      12,145.7      109,453 3.82
                                             1,110 0.04              133.9            7.0        126.9         1,952 0.07
Gambia, The . . . . . . . . . .
Georgia . . . . . . . . . . . . . .            777 0.03                93.7           2.7          91.0        1,619 0.06
Germany c . . . . . . . . . . . .            2,590 0.10              312.4          18.6         293.8         3,432 0.12
Ghana . . . . . . . . . . . . . . . .     118,578 4.38            14,304.7       1,043.5      13,261.1      119,420 4.16
Greece c . . . . . . . . . . . . . .         2,202 0.08              265.6          16.1         249.5         3,044 0.11
                                             4,460 0.16              538.0          40.4         497.6         5,302 0.18
Grenada . . . . . . . . . . . . . .
Guatemala . . . . . . . . . . . .              673 0.02                81.2           2.4          78.8        1,515 0.05
Guinea . . . . . . . . . . . . . . .         2,001 0.07              241.4          12.4         229.0         2,843 0.10
Guinea-Bissau . . . . . . . . .              1,864 0.07              224.9            9.9        214.9         2,706 0.09
Guyana . . . . . . . . . . . . . . .                                   73.9           1.4          72.5        1,455 0.05
                                               613 0.02              208.0          11.5         196.5         2,566 0.09
                                             1,724 0.06

                                                                  109
STATEMENT OF SUBSCRIPTIONS TO
CAPITAL STOCK AND VOTING POWER (Continued)

June 30, 2025

Expressed in millions of U.S. dollars

                                                                  Subscriptions                             Voting Power

Member                                    Number of  Percentage         Total     Amounts       Amounts     Number of  Percentage
                                            shares    of total a     amounts a   paid in a,b   subject to      votes    of total a
Haiti . . . . . . . . . . . . . . . . .
Honduras . . . . . . . . . . . . .            1,550     0.06%      $ 187.0       $ 7.8           call a, b      2,392     0.08%
Hungary c . . . . . . . . . . . . .             641     0.02              77.3         2.3                      1,483     0.05
Iceland c . . . . . . . . . . . . . .                   0.46                                  $ 179.2         13,298      0.46
India . . . . . . . . . . . . . . . . .     12,456      0.07          1,502.6       107.4           75.0        2,817     0.10
                                              1,975     3.14            238.3         14.8                    86,017      3.00
Indonesia . . . . . . . . . . . . .                                                 738.0        1,395.2
Iran, Islamic Republic                      85,175      1.07         10,275.1                      223.5      29,705      1.04
                                                                      3,481.9       249.9
   of . . . . . . . . . . . . . . . . .     28,863                                               9,537.1
Iraq . . . . . . . . . . . . . . . . . .
Ireland c . . . . . . . . . . . . . .                                                            3,232.0
Israel . . . . . . . . . . . . . . . .
                                           34,963 1.29             4,217.8         254.3       3,963.4       35,805 1.25
Italy c . . . . . . . . . . . . . . . .      5,085 0.19              613.4          48.9         564.5         5,927 0.21
Jamaica . . . . . . . . . . . . . .          9,415 0.35                             80.3                     10,257 0.36
Japan c . . . . . . . . . . . . . . .        7,386 0.27            1,135.8          62.6       1,055.5         8,228 0.29
Jordan . . . . . . . . . . . . . . .                                 891.0                       828.4
Kazakhstan . . . . . . . . . . .           76,144 2.81                             668.6                     76,986 2.68
                                             3,741 0.14            9,185.6          30.5       8,517.1         4,583 0.16
Kenya . . . . . . . . . . . . . . . .     199,885 7.38               451.3       1,751.9         420.8      200,727 7.00
Kiribati . . . . . . . . . . . . . . .       2,337 0.09                             16.5                       3,179 0.11
Korea, Republic of c . . . .                 4,573 0.17           24,113.1          31.3      22,361.2         5,415 0.19
Kosovo, Republic of . . . .                                          281.9                       265.4
Kuwait . . . . . . . . . . . . . . .         3,435 0.13              551.7          21.1         520.4         4,277 0.15
                                               680 0.03                               1.9                      1,522 0.05
Kyrgyz Republic . . . . . . .                                        414.4         389.9         393.2       46,127 1.61
Lao People's Democratic                    45,285 1.67                 82.0         11.5           80.1        2,380 0.08
                                             1,538 0.06            5,463.0         167.7       5,073.1       21,786 0.76
   Republic . . . . . . . . . . . .        20,944 0.77               185.5                       174.1
Latvia c . . . . . . . . . . . . . . .                             2,526.6            5.7      2,358.9         1,949 0.07
Lebanon . . . . . . . . . . . . . .          1,107 0.04
Lesotho . . . . . . . . . . . . . .                                  133.5                       127.9

Liberia . . . . . . . . . . . . . . .        355 0.01                42.8        3.3          39.5           1,197 0.04
Libya . . . . . . . . . . . . . . . .      2,027 0.07               244.5                                    2,869 0.10
Lithuania c . . . . . . . . . . . .        1,062 0.04               128.1        15.3         229.3          1,904 0.07
Luxembourg c . . . . . . . . .             1,057 0.04               127.5                                    1,899 0.07
Madagascar . . . . . . . . . . .                                                 6.3          121.8
                                             606 0.02                73.1                                    1,448 0.05
Malawi . . . . . . . . . . . . . . .       9,935 0.37             1,198.5        4.6          122.9         10,777 0.38
Malaysia . . . . . . . . . . . . .         2,258 0.08
Maldives . . . . . . . . . . . . .         2,806 0.10               272.4        3.6          69.5           3,100 0.11
Mali . . . . . . . . . . . . . . . . .     2,506 0.09               338.5                                    3,648 0.13
Malta . . . . . . . . . . . . . . . .                               302.3        72.1 1,126.4                3,348 0.12
                                           1,722 0.06
                                          10,447 0.39               207.7        17.3         255.1          2,564 0.09
                                                                  1,260.3                                   11,289 0.39
                                             525 0.02                            22.1         316.4          1,367 0.05
                                           2,035 0.08                63.3                                    2,877 0.10
                                           1,533 0.06               245.5        18.0         284.4          2,375 0.08
                                                                    184.9
                                                                                 10.2         197.5

                                                                                 75.4 1,184.8

                                                                                 2.0          61.3

                                                                                 14.1         231.4

                                                                                 10.9         174.0

                                                                  110
STATEMENT OF SUBSCRIPTIONS TO
CAPITAL STOCK AND VOTING POWER (Continued)

June 30, 2025

Expressed in millions of U.S. dollars

                                                                Subscriptions                             Voting Power

Member                                  Number of  Percentage         Total     Amounts       Amounts     Number of  Percentage
                                          shares    of total a     amounts a   paid in a,b   subject to      votes    of total a
Marshall Islands . . . . . . .
Mauritania . . . . . . . . . . . .            469     0.02%      $ 56.6        $ 0.9           call a, b      1,311     0.05%
Mauritius . . . . . . . . . . . . .         1,308     0.05            157.8          6.1                      2,150     0.07
Mexico . . . . . . . . . . . . . . .        1,780     0.07            214.7         13.1    $ 55.7            2,622     0.09
Micronesia, Federated                     47,720      1.76                                       151.7      48,562      1.69
                                                                    5,756.7       413.1          201.6
   States of . . . . . . . . . . . .
                                                                                               5,343.6
Moldova . . . . . . . . . . . . . .
Mongolia . . . . . . . . . . . . .      479 0.02                   57.8           1.0          56.8        1,321 0.05
Montenegro . . . . . . . . . . .
Morocco . . . . . . . . . . . . . .     2,419 0.09                291.8         17.2          274.6        3,261 0.11
Mozambique . . . . . . . . . .            829 0.03                100.0           5.6          94.4        1,671 0.06
                                          971 0.04                117.1           6.6         110.5        1,813 0.06
Myanmar . . . . . . . . . . . . .                                 973.4         66.8          906.6        8,911 0.31
Namibia . . . . . . . . . . . . . .     8,069 0.30                160.7           6.8         153.9        2,174 0.08
Nauru . . . . . . . . . . . . . . . .   1,332 0.05
Nepal . . . . . . . . . . . . . . . .                             418.0         21.4          396.6        4,307 0.15
Netherlands c . . . . . . . . . .        3,465 0.13               232.8         11.7          221.1        2,772 0.10
                                         1,930 0.07                70.7           2.4          68.3        1,428 0.05
New Zealand c . . . . . . . . .                                   184.3           8.6         175.7        2,370 0.08
Nicaragua . . . . . . . . . . . . .        586 0.02             6,527.7        475.4        6,052.3       54,953 1.92
Niger . . . . . . . . . . . . . . . .    1,528 0.06
Nigeria . . . . . . . . . . . . . . .   54,111 2.00             1,358.5         96.8        1,261.6       12,103 0.42
North Macedonia . . . . . . .                                     120.5           5.3         115.2        1,841 0.06
                                        11,261 0.42               148.7           5.6         143.1        2,075 0.07
Norway c . . . . . . . . . . . . .         999 0.04                            168.0                      20,259 0.71
Oman . . . . . . . . . . . . . . . .                            2,342.4           5.7       2,174.3        1,483 0.05
Pakistan . . . . . . . . . . . . . .     1,233 0.05                77.3                        71.7
Palau . . . . . . . . . . . . . . . .   19,417 0.72                            145.0                      17,588 0.61
Panama . . . . . . . . . . . . . .                              2,020.2         12.1        1,875.1        2,820 0.10
                                           641 0.02               238.6        122.4          226.5       14,990 0.52
Papua New Guinea . . . . .                                                        0.2
Paraguay . . . . . . . . . . . . .      16,746 0.62             1,706.7         10.3        1,584.3          858 0.03
Peru . . . . . . . . . . . . . . . . .                               1.9                         1.8       1,980 0.07
Philippines . . . . . . . . . . . .     1,978 0.07                              16.1
Poland c . . . . . . . . . . . . . .                              137.3         14.1          127.0        3,115 0.11
                                        14,148 0.52                             77.5                       2,879 0.10
Portugal c . . . . . . . . . . . . .                              274.2        102.1          258.1        9,934 0.35
Qatar . . . . . . . . . . . . . . . .   16         *              245.7        177.1          231.6       12,729 0.44
Romania . . . . . . . . . . . . . .                             1,096.8                     1,019.3       21,316 0.74
Russian Federation . . . . .            1,138 0.04              1,434.0         76.2        1,331.9
Rwanda . . . . . . . . . . . . . .                              2,469.9         11.1        2,292.8        9,779 0.34
                                         2,273 0.08                             72.4                       2,231 0.08
                                         2,037 0.08             1,078.1        685.8        1,001.9        9,052 0.32
                                         9,092 0.34               167.6           7.5         156.5       79,963 2.79
                                        11,887 0.44               990.4                       918.0        2,344 0.08
                                        20,474 0.76
                                                                9,544.8                     8,859.0
                                         8,937 0.33               181.2                       173.7
                                         1,389 0.05
                                         8,210 0.30
                                        79,121 2.92
                                         1,502 0.06

                                                                111
STATEMENT OF SUBSCRIPTIONS TO
CAPITAL STOCK AND VOTING POWER (Continued)

June 30, 2025

Expressed in millions of U.S. dollars

                                                                Subscriptions                             Voting Power

Member                                  Number of  Percentage         Total     Amounts       Amounts     Number of  Percentage
                                          shares    of total a     amounts a   paid in a,b   subject to      votes    of total a
St. Kitts and Nevis . . . . . .
St. Lucia . . . . . . . . . . . . . .         275     0.01%      $ 33.2        $ 0.3           call a, b      1,117     0.04%
St. Vincent and the                           699     0.03              84.3         2.6                      1,541     0.05
                                                                                            $ 32.9
   Grenadines . . . . . . . . . .                                                                 81.7
Samoa . . . . . . . . . . . . . . .
San Marino . . . . . . . . . . .           387 0.01                46.7           1.6          45.1        1,229 0.04
                                           947 0.03               114.2           5.1         109.2        1,789 0.06
Sao Tome and Principe . .                  595 0.02                71.8           2.5          69.3        1,437 0.05
Saudi Arabia . . . . . . . . . .
Senegal . . . . . . . . . . . . . .        705 0.03                85.0           2.2          82.9        1,547 0.05
Serbia . . . . . . . . . . . . . . . .  76,967 2.84             9,284.9        668.3        8,616.6       77,809 2.71
Seychelles . . . . . . . . . . . .       2,942 0.11                             17.5                       3,784 0.13
                                         4,133 0.15               354.9         36.6          337.4        4,975 0.17
Sierra Leone . . . . . . . . . .                                  498.6                       462.0        1,105 0.04
Singapore . . . . . . . . . . . . .        263 0.01                31.7           0.2          31.6
Slovak Republic c . . . . . .                                                                              1,885 0.07
Slovenia c . . . . . . . . . . . . .     1,043 0.04               125.8           4.6         121.2        7,951 0.28
Solomon Islands . . . . . . .            7,109 0.26               857.6         63.0          794.6        5,627 0.20
                                         4,785 0.18               577.2         41.0          536.2        2,879 0.10
Somalia, Federal                         2,037 0.08               245.7         18.0          227.8        1,571 0.05
   Republic of . . . . . . . . .                                   87.9           2.3          85.6
                                           729 0.03
South Africa . . . . . . . . . .
South Sudan . . . . . . . . . . .          632 0.02                76.2           3.3          72.9        1,474 0.05
Spain c . . . . . . . . . . . . . . .   20,793 0.77             2,508.4        180.0        2,328.4       21,635 0.75
Sri Lanka . . . . . . . . . . . . .      1,437 0.05                                                        2,279 0.08
                                        52,895 1.95               173.4           8.6         164.8       53,737 1.87
Sudan . . . . . . . . . . . . . . . .    6,282 0.23             6,381.0        461.2        5,919.8        7,124 0.25
Suriname . . . . . . . . . . . . .                                              51.0
Sweden c . . . . . . . . . . . . .       1,989 0.07               757.8                       706.9        2,831 0.10
Switzerland c . . . . . . . . . .          412 0.02                             15.5                       1,254 0.04
Syrian Arab Republic . . .                                        239.9           2.0         224.5       25,990 0.91
                                        25,148 0.93                49.7        219.1           47.7       41,731 1.45
Tajikistan . . . . . . . . . . . . .    40,889 1.51             3,033.7        357.9        2,814.6        3,294 0.11
Tanzania . . . . . . . . . . . . .                              4,932.6         14.0        4,574.7
Thailand . . . . . . . . . . . . . .     2,452 0.09               295.8                       281.8        2,046 0.07
Timor-Leste . . . . . . . . . . .                                                 5.3                      2,137 0.07
Togo . . . . . . . . . . . . . . . . .   1,204 0.04               145.2         10.0          139.9       14,594 0.51
                                         1,295 0.05               156.2        118.1          146.2        1,595 0.06
Tonga . . . . . . . . . . . . . . . .   13,752 0.51             1,659.0           3.1       1,540.9        2,440 0.09
Trinidad and Tobago . . . .                                        90.8           8.1          87.8
Tunisia . . . . . . . . . . . . . . .      753 0.03               192.8                       184.7        1,638 0.06
Trkiye . . . . . . . . . . . . . .      1,598 0.06                               3.5                      4,218 0.15
Turkmenistan . . . . . . . . . .                                   96.0         22.8           92.5        2,906 0.10
                                           796 0.03               407.3         18.3          384.5       31,510 1.10
                                         3,376 0.12               249.0        264.5          230.7        1,469 0.05
                                         2,064 0.08             3,699.6           3.6       3,435.1
                                        30,668 1.13                75.6                        72.0

                                           627 0.02

                                                                112
STATEMENT OF SUBSCRIPTIONS TO
CAPITAL STOCK AND VOTING POWER (Continued)

June 30, 2025

Expressed in millions of U.S. dollars

                                                               Subscriptions                             Voting Power

Member                                 Number of  Percentage       Total       Amounts       Amounts     Number of   Percentage
                                         shares    of total a   amounts a     paid in a,b   subject to      votes     of total a
Tuvalu . . . . . . . . . . . . . . .
Uganda . . . . . . . . . . . . . . .         461     0.02%     $ 55.6         $ 1.5           call a, b      1,303      0.05%
Ukraine . . . . . . . . . . . . . .        1,128     0.04           136.1           9.6                      1,970      0.07
United Arab Emirates . . .               14,361      0.53                                  $ 54.1          15,203       0.53
United Kingdom c . . . . . .               7,043     0.26         1,732.4        108.5          126.5        7,885      0.27
                                        108,611      4.01           849.6          66.2                   109,453       3.82
United States c . . . . . . . . .                                                975.7        1,623.9
Uruguay . . . . . . . . . . . . . .     451,968     16.68       13,102.3                        783.4     452,810      15.79
Uzbekistan . . . . . . . . . . . .         3,732     0.14                      3,896.0                       4,574      0.16
Vanuatu . . . . . . . . . . . . . .        4,238     0.16       54,523.2           28.1     12,126.6         5,080      0.18
Venezuela, Republica                         765     0.03           450.2          32.9                      1,607      0.06
                                                                    511.3           3.1     50,627.1
   Bolivariana de . . . . . . .          20,361                      92.3                       422.1
                                                                                 150.8          478.4
Viet Nam . . . . . . . . . . . . .         5,311  0.75         2,456.2                           89.2       21,203   0.74
Yemen, Republic of . . . . .               2,212                                   47.0                       6,153
Zambia . . . . . . . . . . . . . . .       4,727  0.20            640.7            14.0       2,305.5         3,054  0.21
Zimbabwe . . . . . . . . . . . . .         3,575  0.08            266.8            38.7                       5,569  0.11
                                                  0.17            570.2            22.4         593.7         4,417  0.19
Total-June 30, 2025 . . . .           2,709,291   0.13            431.3                         252.8                0.15
                                                                                22,911          531.5    2,868,429
                                                  100%         326,835                          408.9                100%
                                                                                                         2,835,535
                                                                                             303,924

Total-June 30, 2024 . . . . 2,678,098                          323,072 22,452 300,620

Notes

a. May differ from the calculated figures or sum of individual figures shown due to rounding.
b. See Notes to Financial Statements, Note B--Capital Stock, Maintenance of Value, and Membership.
c. A member of the Development Assistance Committee of the Organization for Economic Cooperation and

      Development (OECD).
* Indicates amount less than $0.5 million or 0.005%

The Notes to Financial Statements are an integral part of these Statements.
                                            113
NOTES TO FINANCIAL STATEMENTS

PURPOSE AND AFFILIATED ORGANIZATIONS
The International Bank for Reconstruction and Development (IBRD) is an international organization which
commenced operations in 1946. The principal purpose of IBRD is to promote sustainable economic development
and reduce poverty in its member countries, primarily by providing loans, guarantees and related technical
assistance for specific projects and for programs of economic reform in developing member countries. The
activities of IBRD are complemented by those of three affiliated organizations, the International Development
Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee
Agency (MIGA). Each of these organizations is legally and financially independent from IBRD, with separate
assets and liabilities, and IBRD is not liable for their respective obligations. Transactions with these affiliated
organizations are disclosed in the notes that follow.

IBRD is immune from taxation pursuant to Article VII, Section 9, Immunities from Taxation, of IBRD's Articles
of Agreement.

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING AND RELATED POLICIES
IBRD's financial statements are prepared in conformity with accounting principles generally accepted in the
United States of America (U.S. GAAP).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the
reporting periods. Due to the inherent uncertainty involved in making these estimates, actual results could differ
from these estimates. Significant judgment has been used in the valuation of certain financial instruments, the
determination of the adequacy of the accumulated provisions for losses on loans and other exposures, the
determination of the net periodic cost from pension and other postretirement benefits plans, and the present value
of projected benefit obligations.

Certain reclassifications of the prior year's information have been made to conform with the current year's
presentation.

Translation and Remeasurement of Currencies
IBRD's financial statements are expressed in terms of U.S. dollars for the purpose of reporting IBRD's financial
position and the results of its operations. IBRD's functional currencies are the U.S. dollar and euro.

Assets and liabilities are translated at market exchange rates in effect at the end of the reporting period. Revenue
and expenses are translated at either the market exchange rates in effect on the dates on which they are recognized
or at an average of the market exchange rates in effect during the month of the transaction. Remeasurement
adjustments relating to non-functional currencies are reflected in the Statements of Income, while translation
adjustments for assets and liabilities denominated in euro are reflected in the Statements of Comprehensive Income.

Paid-In Capital
Valuation of Capital Stock
In the Articles of Agreement, the capital stock of IBRD is expressed in terms of "U.S. dollars of the weight and
fineness in effect on July 1, 1944" ("1944 dollars"). Following the abolition of gold as a common denominator of

                                                                  114
the monetary system and the repeal of the provision of the U.S. law defining the par value of the U.S. dollar in
terms of gold, the pre-existing basis for translating 1944 dollars into current dollars or into any other currency
was eliminated. The Executive Directors of IBRD have decided, until such time as the relevant provisions of the
Articles of Agreement are amended, that the words "U.S. dollars of the weight and fineness in effect on July 1,
1944" in Article II, Section 2(a) of the Articles of Agreement of IBRD are interpreted to mean the Special
Drawing Right (SDR) introduced by the International Monetary Fund, as valued in terms of U.S. dollars
immediately before the introduction of the basket method of valuing the SDR on July 1, 1974, such value being
$1.20635 for one SDR ("1974 SDR").

Nonnegotiable, Noninterest-bearing Demand Obligations on Account of Subscribed Capital

All demand obligations are held in bank accounts which bear IBRD's name and are carried and reported at face
value as a reduction to equity. Payments on some of these instruments are due to IBRD upon demand. Others are
due to IBRD on demand, but only after IBRD's callable subscribed capital has been entirely called pursuant to
Article IV, Section 2 (a) of the Articles of Agreement.

Receivable and deferred amounts to maintain value of currency holdings

Article II, Section 9 of the Articles of Agreement provides for maintenance of value (MOV), at the time of
subscription, of national currencies paid-in, which are subject to certain restrictions. MOV is determined by
measuring the foreign exchange value of a member's national currency against the standard of value of IBRD's
capital based on the 1974 SDR. MOV receivable are amounts due from members on account of movements in
exchange rates from the date of initial subscription, resulting in the reduction in the value of their paid-in capital
denominated in national currencies. Members are required to make payments to IBRD if their currencies
depreciate significantly relative to the standard of value. These amounts may be settled either in cash or a
nonnegotiable, noninterest-bearing note, which is due on demand. Furthermore, the Executive Directors have
adopted a policy of reimbursing members whose national currencies appreciate significantly in terms of the
standard of value.

MOV is deferred when the restriction of national currencies paid-in is lifted and these currencies are being used
in IBRD's operations and/or are being invested, swapped, or loaned to members by IBRD or through IFC. Once
these restricted currencies are no longer being used in operations, the related MOV is no longer deferred, but
rather, becomes due on the same terms as other MOV obligations.

All MOV receivable balances are shown as components of Equity, under Receivable amounts to maintain value
of currency holdings. All MOV payable balances are included in Other liabilities--Accounts payable and
miscellaneous liabilities on the Balance Sheets. The net receivable or payable MOV amounts relating to national
currencies used in IBRD's lending and investing operations are also included as a component of Equity under
Deferred amounts to maintain value of currency holdings.

Withdrawal of Membership

Under IBRD's Articles of Agreement, in the event a member withdraws from IBRD, the withdrawing member is
entitled to receive the value of its shares payable to the extent the member does not have any outstanding
obligations to IBRD. IBRD's Articles of Agreement also state that the former member has continuing obligations
to IBRD after withdrawal. Specifically, the former member remains fully liable for its entire capital subscription,
including both the previously paid-in portion and the callable portion, so long as any part of the loans or
guarantees contracted before it ceased to be a member are outstanding.

Transfers Approved by the Board of Governors

In accordance with IBRD's Articles of Agreement, as interpreted by the Executive Directors, the Board of
Governors may exercise its reserved power to approve transfers to other entities for development purposes. When
unconditional, these transfers, which are included in the Board of Governors-approved transfers line in the

                                                                  115
Statements of Income, are reported as expenses upon approval. If conditional, these transfers are expensed when
the conditions specified for the use by the beneficiaries have been met. The transfers are funded from the
preceding fiscal year's Net Income, Surplus, Restricted Retained Earnings or Other Reserves.

Retained Earnings
Retained Earnings consist of allocated amounts (Special Reserve, General Reserve, Pension Reserve, Surplus,
Cumulative Fair Value Adjustments, Restricted Retained Earnings, Other Reserves) and Unallocated Net Income
(Loss).

The Special Reserve consists of loan commissions set aside pursuant to Article IV, Section 6 of the Articles of
Agreement, which are to be held in liquid assets. These assets may be used only for the purpose of meeting
liabilities of IBRD on its borrowings and guarantees in the event of default on loans made, participated in, or
guaranteed by IBRD. The Special Reserve assets are included under Investments-Trading, and comprise
obligations of the United States Government, its agencies, and other official entities. The allocation of such
commissions to the Special Reserve was discontinued in 1964 with respect to subsequent loans and no further
additions are being made to it.

The General Reserve consists of earnings from prior fiscal years which, in the judgment of the Executive
Directors, should be retained in IBRD's operations.

The Pension Reserve consists of the difference between the cumulative actual funding of the Staff Retirement
Plan and Trust (SRP) and other postretirement benefits plans, and the cumulative accounting income or expense
for these plans, from prior fiscal years. This reserve is reduced when pension accounting expenses exceed the
actual funding of these plans. In addition, the Pension Reserve also includes investment revenue earned on the
Post-Employment Benefits Plan (PEBP) portfolio and Post Retirement Contribution Reserve Fund (PCRF),
which is used to stabilize IBRD's contributions to the pension plan.

Surplus consists of earnings from prior fiscal years which are retained by IBRD until a further decision is made
on their disposition. Allocations from Surplus are recorded when approved by the Board of Governors.

Cumulative Fair Value Adjustments consist of the unrealized mark-to-market gains or losses on non- trading
portfolios and certain positions in the trading portfolio.

Restricted Retained Earnings consists of contributions or revenue from prior years which are contractually
restricted as to their purpose.

Other Reserves consist mainly of allocations from Surplus to certain funds and non-functional currency
translation adjustment gains/losses from prior fiscal years.

Unallocated Net Income (Loss) consists of the current fiscal year's net income (loss) adjusted for Board of
Governors-approved transfers made during the year.

Accumulated other comprehensive income
Comprehensive income or loss consists of net income (loss) and other gains and losses affecting equity that,
under U.S. GAAP, are excluded from net income. Other comprehensive income (loss) comprises currency
translation adjustments on assets and liabilities denominated in euro, DVA on Fair Value Option elected
liabilities, and pension related items, as presented in Statement of Comprehensive income.

                                                                  116
Loans and Other Exposures

Loans

All IBRD loans are made to or guaranteed by countries that are members of IBRD, except for loans made to IFC.
The majority of IBRD's loans have repayment obligations based on specific currencies. IBRD also holds
multicurrency loans which have repayment obligations in various currencies determined on the basis of a
currency pooling system. Other exposures comprise signed commitments (including Deferred Drawdown
Options (DDOs) that are effective, and irrevocable commitments), and guarantees.

Generally, loans are reported on the Balance Sheets at amortized cost. Loans with embedded derivatives are
assessed for fair value election, or bifurcation of the loan and derivative. Commitment charges on the
undisbursed balance of loans are recognized in revenue as earned. Any loan origination fees incorporated in the
terms of a loan are deferred and recognized over the life of the loan as an adjustment of the yield. The
unamortized balance of loan origination fees is included as a reduction of the Loans outstanding on the Balance
Sheets, and the amortization of loan origination fees are included in Interest revenue from Loans, net in the
Statements of Income. Accrued interest is presented in the Balance Sheets line item Receivables-Accrued income
on loans and guarantee fees receivable.

It is IBRD's practice not to reschedule interest or principal payments on its loans or participate in debt
rescheduling agreements with respect to its loans, except for activation of a deferral under the Climate Resilient
Debt Clause (CRDC). Should any other permissible modifications be made to the terms of existing loans, IBRD
would perform an evaluation to determine the required accounting treatment, including whether the modification
would result in the affected loans being accounted for as a new loan or as a continuation of the existing loan.

It is IBRD's policy to place all loans and other exposures (collectively "exposures") made to or guaranteed by a
member of IBRD into nonaccrual status if principal, interest, or other charges with respect to any such exposures
are overdue by more than six months, unless IBRD's management determines that the overdue amount will be
collected in the immediate future. In addition, if loans and other exposures made by IDA to a member country
are placed in nonaccrual status, all IBRD loans and other exposures made to, or guaranteed by, that member
country will also be placed in nonaccrual status by IBRD. On the date a member's exposures are placed into
nonaccrual status, unpaid interest and other charges accrued on exposures to the member are deducted from the
revenue of the current period.

Interest and other charges on nonaccruing exposures are included in revenue only to the extent that payments
have been received by IBRD. A decision on the restoration of accrual status is made upon arrears clearance. If
collectability risk is considered to be particularly high at the time of arrears clearance, the member's exposures
may not automatically emerge from nonaccrual status until a suitable period of payment performance has passed.

Loan Commitments

Loan Commitments are undisbursed loans approved by the Executive Directors, for which disbursements are yet
to be made. IBRD records a provision for expected losses on undisbursed loan commitments including DDOs,
when signed by both parties. The signature of the loan agreement is a binding event that prevents IBRD from
unconditionally withdrawing from the agreement.

Guarantees provided

Financial guarantees are commitments issued by IBRD to guarantee payment by a member country (the debtor)
to a third party in the event that a member government (or a government-owned entity) fails to perform its
contractual obligations to a third party.

                                                                  117
Guarantees provided are regarded as outstanding when the underlying financial obligation of the debtor is
incurred, and called when a guaranteed party demands payment under the guarantee. IBRD would be required to
perform under its guarantees if the payments guaranteed were not made by the debtor and the guaranteed party
called the guarantee by demanding payment from IBRD in accordance with the terms of the guarantee. In the
event that a guarantee of a member country is called, IBRD has the contractual right to require payment from the
member country.

IBRD records the fair value of the obligation to stand ready in Other Liabilities-Accounts payable and
miscellaneous liabilities, and a corresponding fees receivable asset in the Receivables-Accrued income on loans
and guarantee fees receivable line on IBRD's Balance Sheets. Upfront guarantee fees received are deferred and
amortized over the life of the guarantee.

Guarantees Received

IBRD receives third-party guarantees in the form of a credit enhancement to loan exposures. The credit
enhancements that are contractually attached to the loan reduce the exposure at risk considered in computing the
loan loss provisions.

Financial guarantees that are not contractually attached to the loan are recorded as a recoverable asset and
included in Other assets--Miscellaneous on the Balance Sheets. The change in value of the recoverable asset is
recorded as Non-interest revenue--Other, net on the Statements of Income.

Credit enhancements that do not meet the requirements to be accounted for as financial guarantees are recorded
as derivatives.

Accumulated Provision for Losses on Loans and Other Exposures

Management determines the appropriate level of accumulated provisions for losses on exposures, which reflects
the expected losses inherent in IBRD's exposures.

Loans

Loan exposures are disaggregated into two groups: exposures in accrual status and exposures in nonaccrual
status. In each group, a credit risk rating is assigned to exposures for each borrower.

The total exposure for provisioning is the current exposure and the estimated future exposure, taking into account
expected disbursements and repayments over the life of the instruments. The expected credit losses related to
loans and other exposures are calculated over the life of the instruments based on the annual estimated exposures,
the expected default frequency (probability of default to IBRD) and the estimated loss given default. The
provision for expected losses is the sum of the expected annual losses over the life of the instruments.

For countries in accrual status, these exposures are grouped in pools of borrowers with a similar risk rating. The
determination of a borrower's rating is based on various factors (see Note D--Loans and other exposures). Each
risk rating is mapped to an expected default frequency using IBRD's credit migration matrix, based on historical
observations of credit ratings at the beginning and at the end of each year.

Expected losses on loan exposures comprise estimates of potential losses arising from the economic loss due to
delays in receiving payments. The estimated loss given default is determined at each Balance Sheet date, based
on IBRD's historical experience, as well as parameters adjusted for current conditions during the reasonable and
supportable forecast period of IBRD. The loss given default is based on the borrower's eligibility, namely: IBRD,
Blend (IBRD and IDA) and IDA, with the highest loss given default associated with IDA eligibility. The main
factors used to determine the loss given default are the estimated length of delays in receiving loan payments,

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and the effective interest rate of the exposure. As the majority of IBRD's loans carry a variable interest rate, the
loss severity is impacted by the changes in forward looking market interest rates.

For the calculation of expected credit losses, IBRD applies a three-year reasonable and supportable forecast
period, representing the most reliable and available economic data during this period. IBRD also applies a
ten-year straight-line reversion to the mean to reflect the historical pattern of rating migration to the mean of its
loan portfolio.

This methodology is also applied to countries with exposures in nonaccrual status, although the expected default
frequency is equal to one hundred percent. At times, to reflect certain distinguishing circumstances of a particular
nonaccrual situation, different input assumptions may be used for a specific country.

All exposures for countries in nonaccrual status are individually assessed. Exposure for certain countries in
accrual status may be individually assessed on the basis that they do not share common risk characteristics with
an existing pool of exposures. It is IBRD's practice not to write off loans. All contractual obligations associated
with exposures in nonaccrual status have eventually been cleared, and borrowers have emerged from nonaccrual
status. To date, no loans have been written off.

Management reassesses the adequacy of the accumulated provision on a quarterly basis and adjustments to the
accumulated provision are recorded as a charge to or release of provision in the Statements of Income. In
addition, reasonableness of the inputs used is reassessed quarterly.

Loan Commitments

IBRD records the expected credit losses on loan commitments based on the projected disbursements of signed
loan commitments (adjusted by cancellations based on historical experience), the expected probability of default
and estimated loss given default. The provision is included in Other liabilities--Accounts payable and
miscellaneous liabilities on the Balance Sheets.

Guarantees provided

IBRD records a contingent liability for the expected losses related to guarantees provided over the projected life
of the instruments, that is determined based on the estimated exposure at default, multiplied by the corresponding
loss given default and expected default probability for the projected life of the guarantee. This contingent liability
as well as the unamortized balance of the deferred guarantee fees, and the unamortized balance of the obligation
to stand-ready, are included in Other Liabilities--Accounts payable and miscellaneous liabilities on the Balance
Sheets.

Exposure Exchange Agreements (EEAs)

IBRD executes EEAs with various organizations. While these agreements are not legally considered guarantees,
in IBRD's financial statements they are recognized as financial guarantees as they meet the accounting criteria
for financial guarantees. Under an EEA, each party exchanges credit risk exposure of a portfolio supported by
underlying loans to borrowers, by providing and receiving guarantees from each other, for the amounts specified.
The guarantee provided and the guarantee received are two separate transactions; namely (a) the provision of a
financial guarantee, and (b) the receipt of an asset. There is generally no exchange of cash between the
organizations for these transactions.

For a guarantee provided under an EEA, IBRD records a liability equivalent to the fair value of the obligation to
stand ready. This liability is included in Other liabilities--Accounts payable and miscellaneous liabilities on the
Balance Sheets and is amortized over the life of the EEA. IBRD also records a liability, and corresponding
expense, in recognition of the risk coverage provided (provision). The change in the provision is recorded as

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Provision for losses on loans and other exposures on the Statements of Income. The value of this liability reflects
the credit quality of the underlying loans in the portfolio and changes over the life of the EEA as the credit
quality of these loans changes.

For a guarantee received under an EEA, IBRD records an asset equivalent to the fair value of the right to be
indemnified. This asset is included in Other assets--Miscellaneous on the Balance Sheets and is amortized over
the life of the EEA. IBRD records corresponding income, in recognition of the risk coverage received
(recoverable asset). The change in value of the recoverable asset is recorded as Non-interest revenue--Other, net
on the Statements of Income. The value of this asset reflects the credit quality of the underlying loans in the
portfolio and changes over the life of the EEA contract as the credit quality of these loans changes.

Statements of Cash Flows

For the purpose of IBRD's Statements of Cash Flows, cash is defined as the amount of Unrestricted cash and
Restricted cash under the Due from banks line on the Balance Sheets.

Restricted Cash

This includes amounts which have been received from members as part of their capital subscriptions, as well as
from donors and other sources, which are restricted for specified purposes. For capital subscriptions, a portion of
these subscriptions have been paid to IBRD in the national currencies of the members. These amounts are usable
by IBRD in its lending and investing operations, only with the consent of the respective members, and for
administrative expenses incurred in national currencies.

Investments

Investment securities are classified based on Management's intention on the date of purchase, their nature, and
IBRD's policies governing the level and use of such investments. As of June 30, 2025, all of the financial
instruments in IBRD's investment portfolio were classified as trading. These securities are carried and reported at
fair value, or at face value or net asset value (NAV), which approximate fair value.

Where available, quoted market prices are used to determine the fair value of trading securities. These include
most government, agency and corporate obligations, exchange-traded equity securities, Asset- backed Securities
(ABS), and Mortgage-backed Securities (MBS). For instruments for which market quotations are not available,
fair values are determined using model-based valuation techniques, whether internally-generated or vendor-
supplied, that include the discounted cash flow method using observable market inputs such as yield curves,
credit spreads, and conditional prepayment rates. Where applicable, unobservable inputs such as estimated
conditional prepayment rates for illiquid instruments, probability of default and loss severity are used. Unless
quoted prices are available, time deposits are reported at face value which approximates fair value, as they are
short term in nature. Purchases and sales of securities are recorded on a trade-date basis. Time deposits and
money market deposits are recorded at settlement. The first-in first-out method is used to determine the cost of
securities sold in computing the realized gains and losses on these instruments. Derivative instruments used in
liquidity management are not designated as hedging instruments for accounting purposes.

Interest revenue is included in the Investments-Trading, net line in the Statements of Income. Unrealized gains
and losses for investment securities and related financial instruments held in the trading portfolio are included in
the Unrealized mark-to-market gains (losses) on Investments-Trading portfolio, net line in the Statements of
Income. Realized gains and losses on trading securities are recognized in the Statements of Income when
securities are sold.

IBRD may require collateral in the form of approved liquid securities from individual counterparties or cash,
under legal agreements that provide for collateralization, in order to mitigate its credit exposure to these

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counterparties. For collateral received in the form of cash from counterparties, IBRD invests the amounts
received and records the investment and a corresponding obligation to return the cash. Collateral received in the
form of liquid securities is only recorded on IBRD's Balance Sheets to the extent that it has been transferred
under securities lending agreements in return for cash.

Securities Purchased Under Resale Agreements, Securities Lent Under Securities Lending Agreements
and Securities Sold Under Repurchase Agreements and Payable for Cash Collateral Received

Securities purchased under resale agreements, securities lent under securities lending agreements, securities sold
under repurchase agreements and payable for cash collateral received are reported at face value which
approximates fair value, as they are short term in nature. IBRD receives securities purchased under resale
agreements, monitors the fair value of the securities and, if necessary, closes out transactions and enters into new
repriced transactions. The securities transferred to counterparties under repurchase and security lending
arrangements and the securities transferred to IBRD under resale agreements have not met the accounting criteria
for treatment as a sale. Therefore, securities transferred under repurchase agreements and security lending
arrangements are retained as assets on the Balance Sheets, and securities received under resale agreements are
not recorded on the Balance Sheets. Securities lent under securities lending agreements and sold under securities
repurchase agreements as well as securities purchased under resale agreements are presented on a gross basis
which is consistent with the manner in which these instruments are settled. The interest earned from securities
purchased under resale agreements is included in InvestmentsTrading, net in the Statements of Income. The
interest expense pertaining to the securities sold under repurchase agreements and security lending arrangements,
is included in the Borrowing expenses, net line in the Statements of Income.

Premises and Equipment

Premises and equipment, including leasehold improvements, and information technology assets are carried at
cost less accumulated depreciation and amortization. IBRD computes depreciation and amortization using the
straight-line method over the estimated useful lives of the owned assets, which range between three and fifty
years. For leasehold improvements, depreciation is computed over the lesser of the remaining term of the leased
facility or the estimated economic life of the improvement.

Maintenance and repairs are charged to expense as incurred, while major improvements are capitalized and
amortized over the estimated useful life.

Lessee Arrangements

IBRD's lessee arrangements are mostly real estate operating leases. Under these arrangements, IBRD records
right-of-use assets and lease liabilities at lease commencement. Right-of-use assets are reported in Other
assets--Premises and equipment, net and the related lease liabilities are reported in Other liabilities--Accounts
payable and miscellaneous liabilities. IBRD has elected to account for the lease and non-lease components
together as a single lease component. At lease commencement, lease liabilities are recognized based on the
present value of the remaining lease payments and discounted using IBRD's incremental borrowing rate. All
leases are recorded on the Balance Sheets except short-term leases with an initial term of 12 months or less.
Lease expense, including that for short-term leases, is recognized on a straight-line basis over the lease term and
is recorded in Administrative expenses in the Statements of Income.

Borrowings

To ensure funds are available for lending and liquidity purposes, IBRD borrows in the international capital
markets, offering its securities (discount notes, vanilla and structured bonds) to private and governmental buyers.
IBRD issues debt instruments of varying maturities denominated in various currencies with both fixed and
variable interest rates.

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IBRD has elected the fair value option for debt instruments issued in the capital markets. All changes in fair
value are recognized in the related Unrealized mark-to-market gains and losses on non-trading portfolios, net,
line in the Statements of Income, except for changes in the fair value related to IBRD's own credit risk, which
are reported in Other Comprehensive Income (OCI) as a Debit Valuation Adjustment (DVA). The DVA on fair
value option elected liabilities is measured by revaluing each borrowing instrument to determine the changes in
fair value of that instrument arising from changes in IBRD's funding spread relative to the applicable reference
rate.

Structured bonds issued by IBRD have coupon or repayment terms linked to the level or the performance of
interest rates, foreign exchange rates, equity indices, catastrophic events or commodities.

For the purpose of the Statements of Cash Flows, short-term borrowings, if any, with original maturities less than
90 days, are presented net of new issuances and retirements. By contrast, short-term borrowings with original
maturities greater than 90 days and up to one year are presented on a gross basis.

Interest expense relating to all debt instruments in IBRD's borrowing portfolio is measured on an effective yield
basis and is reported as part of Borrowing expenses, net in the Statements of Income.

Amortization of discounts and premiums is recorded using the effective interest method and is included in the
Borrowing expenses, net line in the Statements of Income.

Accounting for Borrowings at Amortized Cost
In October 2024, IBRD issued hybrid capital in the legal form of debt, which has characteristics of both debt and
equity. Hybrid capital is reported at amortized cost and included in Borrowings on the Balance Sheets. This
financial instrument also contains interest cancellation and principal write down features.

Currently, hybrid capital is available to IBRD's shareholders, which may also enter into separate agreements
with IBRD that allow them to redeem the hybrid capital to satisfy the payment condition for their paid-in portion
of any future capital increase to which the shareholder has subscribed. In addition, certain agreements include an
option, at IBRD's discretion, to redeem the instrument at par after an initial period of 5 years.

Hybrid capital is subordinated to IBRD's unsubordinated debt issuances, senior to IBRD equity and pari-passu
with all other subordinated issuances. Hybrid capital carries interest rates similar to those of IBRD's senior
medium and long-term bonds. Interest on the hybrid capital is cancellable at the sole discretion of IBRD, or
mandatorily upon the occurrence of a trigger event (linked to the ratio of non-performing loans over usable
equity, and to the ratio of reported equity-to-assets).

Hybrid capital principal is automatically cancelled in the event IBRD makes a call to its members for callable
capital.

Accounting for Derivatives
IBRD has elected not to designate any hedging relationships for accounting purposes. Rather, all derivative
instruments are reported at fair value on the Balance Sheets, with changes in fair values accounted for through
the Statements of Income.

The presentation of derivative instruments on IBRD's Balance Sheets reflects the netting of derivative asset and
liability positions and the related cash collateral received from the counterparty, when a legally enforceable
master netting agreement exists, and the other requisite conditions are met. In addition, in the Notes to the
financial statements, unless stated differently, derivatives are presented on a net basis by instrument.

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A master netting agreement is an industry standard agreement with a counterparty that permits multiple
transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a
single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or transfer security
or deliver collateral when due). Obligations under master netting agreements are often secured by collateral
posted under an industry standard credit support annex to the master netting agreement. Upon default by the
counterparty, the collateral agreement grants an entity the right to set-off any amounts payable by the
counterparty against any posted collateral.

IBRD uses derivative instruments in its investment trading portfolio to manage interest rate and currency risks.
These derivatives are carried and reported at fair value. Interest revenue/expenses are reflected as part of Interest
revenue--Investments-Trading, net, while unrealized mark-to-market gains and losses on these derivatives are
reflected as part of the Unrealized mark-to-market gains (losses) in Investments-Trading, net line in the
Statements of Income.

IBRD also uses derivatives in its loan, borrowing and asset/liability management activities. It also offers
derivative intermediation services to clients. In the loan and borrowing portfolios, derivatives are used to modify
the interest rate and/or currency characteristics of these portfolios. The interest component of these derivatives is
recognized as an adjustment to the related loan revenue and borrowing costs over the life of the derivative
contracts and is included in the related Interest revenue/expenses lines in the Statements of Income. Changes in
fair values of these derivatives are recorded in the Statements of Income as Unrealized mark-to-market gains and
losses in non-trading portfolios, net.

For the purpose of the Statements of Cash Flows, IBRD has elected to report the cash flows associated with the
derivative instruments that are used to economically hedge its loans, investments and borrowings, in a manner
consistent with the presentation of the related loan, investment and borrowing cash flows.

Derivative contracts include currency forward contracts, to-be-announced (TBA) securities, swaptions, exchange
traded options and futures contracts, currency swaps and interest rate swaps. Currency swaps and interest rate
swaps are either plain vanilla or structured. Currency forward contracts and plain vanilla currency and interest
rate swaps are valued using the discounted cash flow methods using observable market inputs such as yield
curves, foreign exchange rates, basis spreads and funding spreads. For structured currency and interest rate
swaps, which primarily consist of callable swaps linked to interest rates, foreign exchange rates, and equity
indices, valuation models and inputs similar to the ones applicable to structured bond valuations are used. Where
applicable, the models also incorporate significant unobservable inputs such as correlations and long-dated
interest rate volatilities.

Most outstanding derivative positions are transacted over-the-counter and therefore valued using internally
developed valuation models. For commercial and non-commercial counterparties where IBRD has a net
receivable position, IBRD calculates a Credit Valuation Adjustment (CVA) to reflect credit risk. For net
derivative positions with commercial and non-commercial counterparties where IBRD is in a net payable
position, IBRD calculates a DVA to reflect its own credit risk. The CVA is calculated using future projected
exposures of the derivative contracts, net of collateral received under credit support agreements, and the
probability of counterparty default based on the Credit Default Swaps (CDS) spread and, where applicable, proxy
CDS spreads. The DVA calculation is generally consistent with the CVA methodology and incorporates IBRD's
own credit spread as observed through the CDS market.

Valuation of Financial Instruments

IBRD has an established and documented process for determining fair values. Fair value is based upon quoted
market prices for the same or similar securities, where available. Financial instruments for which quoted market
prices are not readily available are valued based on discounted cash flow models and other established valuation
models. These models primarily use market-based or independently-sourced market parameters such as yield

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curves, interest rates, volatilities, foreign exchange rates and credit curves, and may incorporate unobservable
inputs, some of which may be significant. Selection of these inputs may involve some judgment. In instances
where management relies on instrument valuations supplied by external pricing vendors, there are procedures in
place to validate the appropriateness of the models used as well as inputs applied in determining those values.
The fair value of certain investments is calculated using NAV as a practical expedient. To ensure that the
valuations are appropriate where internally-developed models are used, IBRD has various controls in place,
which include both internal and periodic external verification and review.

Fair Value Hierarchy
Financial instruments are categorized based on the priority of the inputs to the valuation technique. The fair value
hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1),
the next highest priority to observable market-based inputs or inputs that are corroborated by market data
(Level 2) and the lowest priority to unobservable inputs that are not corroborated by market data (Level 3).

Financial assets and liabilities recorded at fair value on the Balance Sheets are categorized based on the inputs to
the valuation techniques as follows:

Level 1: Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or
          liabilities in active markets.

Level 2: Financial assets and liabilities whose values are based on quoted prices for similar assets or liabilities in
          active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or
          pricing models for which all significant inputs are observable, either directly or indirectly for
          substantially the full term of the asset or liability.

Level 3: Financial assets and liabilities whose values are based on prices or valuation techniques that require
          inputs that are both unobservable and significant to the overall fair value measurement.

IBRD's policy is to recognize transfers in and transfers out of levels as of the end of the reporting period in
which they occur.

Investments measured at NAV (or its equivalent) are not classified in the fair value hierarchy.

Accounting for Grant Expenses
IBRD recognizes an expense for unconditional grants, such as Contributions to special programs and most Board
of Governors-approved transfers, upon approval. IBRD recognizes an expense for conditional grants when the
conditions specified for use by the beneficiaries have been met.

Trust Funds
To the extent that IBRD acts as an agent for, or controls Bank-executed activities for trust funds, assets held on
behalf of specified beneficiaries are recorded on IBRD's Balance Sheets, along with corresponding liabilities.
Amounts disbursed from these trust funds are recorded as expenses with corresponding amounts recognized as
revenues. For recipient-executed activities for trust funds, since IBRD acts as a trustee, no assets or liabilities
relating to these activities are recorded on the Balance Sheets. In some trust funds, execution is split between
recipient-executed and Bank-executed portions. Decisions on assignment of funding resources between the two
types of execution may be made on an ongoing basis, therefore, the execution of a portion of these available
resources may not yet be assigned.

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IBRD also acts as a financial intermediary to provide specific administrative or financial services with a limited
fiduciary or operational role. These arrangements, referred to as Financial Intermediary Funds, include, for
example, administration of debt service trust funds, financial intermediation and other more specialized limited
fund management roles. For these arrangements, funds are held and disbursed in accordance with instructions
from donors or, in some cases, an external governance structure or a body operating on behalf of donors. For
Financial Intermediary Funds, since IBRD acts as a trustee, no assets or liabilities relating to these activities are
recorded on the Balance Sheets.

Accounting and Reporting Developments
Evaluated Accounting Standards:
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to
Reportable Segment Disclosures, which requires additional segment disclosures for public entities, including
those with a single reportable segment (such as IBRD). All existing annual disclosures about segment profit or
loss must be provided on an interim basis in addition to disclosure of significant segment expenses. For IBRD,
the ASU became effective for the annual period ended June 30, 2025, and the adoption of the ASU has resulted
in additional disclosures (see Note M--Segment Reporting).

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU)
2022-03, Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to
Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not
considered part of the unit of account of the equity security and should not be factored in when measuring fair
value. The ASU also clarifies that an entity cannot, as a separate unit of account, recognize and measure a
contractual sale restriction. The ASU requires certain disclosures for equity securities subject to contractual sale
restrictions. For IBRD, the ASU became effective from the quarter ending September 30, 2024 (fiscal year 2025
for IBRD), and the adoption of the ASU did not have a material impact on IBRD's financial statements.

Accounting Standards Under Evaluation:
In November 2024, the FASB issued ASU 2024-03, Income Statement--Reporting Comprehensive
Income--Expense Disaggregation Disclosures (Subtopic 220-40), which requires disaggregated disclosure of
income statement expenses for public business entities. The ASU does not change the expense captions an entity
presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into
specified categories in disclosures within the notes to the financial statements. In January 2025, the FASB issued
ASU 2025-01, Income Statement--Reporting Comprehensive Income--Expense Disaggregation Disclosures
(Subtopic 220-40): Clarifying the Effective Date which clarifies the effective date of ASU 2024-03. For IBRD,
the ASUs will be effective for the annual period ending June 30, 2028 (annual statements of fiscal year 2028, and
interim reporting periods thereafter). IBRD is currently evaluating the impact of the ASUs on its financial
statements.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in
Response to the SEC's Disclosure Update and Simplification Initiative. The new guidance is intended to align
U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. If
by June 30, 2027, the SEC has not removed the related SEC requirement, the related ASU amendment will not
become effective. IBRD is currently evaluating the impact of the ASU on its financial statements.

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NOTE B--CAPITAL STOCK, MAINTENANCE OF VALUE AND MEMBERSHIP
The following table provides a summary of changes in IBRD's authorized and subscribed shares:

Table B1: IBRD's Shares

                                                                                                                 Authorized shares Subscribed shares

As of June 30, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,783,873   2,634,728
                                                                                                                                 43,370
General Capital Increase/Selective Capital Increase (GCI/SCI) . . . . . . . . .                                  --

As of June 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,783,873   2,678,098
                                                                                                                                 31,193
GCI/SCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  --

As of June 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,783,873   2,709,291

The following table provides a summary of the changes in subscribed capital, uncalled portion of subscriptions,
and paid-in capital:

Table B2: IBRD's Capital

In millions of U.S. dollars

                                                                                                                           Uncalled portion
                                                                                                 Subscribed capital of subscriptions Paid-in capital

As of June 30, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $317,840        $(296,021)   $21,819
      GCI/SCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,232           (4,599)       633

As of June 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      323,072         (300,620)    22,452
      GCI/SCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3,763           (3,304)      459

As of June 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $326,835             $(303,924) $22,911

The uncalled portion of subscriptions is subject to call only when required to meet the obligations incurred by
IBRD as a result of borrowings (excluding hybrid capital) or guaranteeing loans.

On October 1, 2018, IBRD's Board of Governors approved two resolutions that increased IBRD's authorized
capital. The total increase in authorized capital was $57.5 billion, of which, $27.8 billion and $29.7 billion relate
to the GCI and SCI, respectively. Under the terms of the 2018 GCI and SCI, paid-in capital is expected to
increase by up to $7.5 billion. On May 23, 2023, the Board approved the extension of the subscription period for
GCI and SCI from October 1, 2023 to October 1, 2025. As of June 30, 2025, the cumulative subscription
payments received under the 2018 capital increases were $6.5 billion.

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Amounts to Maintain the Value of Currency Holdings

The following table summarizes the amounts to Maintain the Value of Currency (MOV), classified as
components of equity:

Table B3: MOV balances

In millions of U.S. dollars

                                                                                                                                 June 30, 2025 June 30, 2024

MOV receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(325)         $(337)

Net Deferred MOV receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              (168)      (428)
Deferred demand obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            (130)      (130)

Deferred MOV receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(298)              $(558)

NOTE C--INVESTMENTS

IBRD's investments include the liquid asset portfolio, holdings relating to the Post Employment Benefit Plan
(PEBP), the Post Retirement Contribution Reserve Fund (PCRF), the IBRD Surplus-Funded Livable Planet Fund
(LPF1), and the Grant Facility for Project Preparation (GFPP).

Investments held by IBRD are designated as trading and reported at fair value or at face value which
approximates fair value. As of June 30, 2025, Investments were primarily comprised of government, agency and
corporate obligations and time deposits (43% and 51%, respectively), with all of the instruments classified as
Level 1 or Level 2 within the fair value hierarchy.

A summary of IBRD's Investments-Trading is as follows:

Table C1: Investments  Trading composition

In millions of U.S. dollars

                                                                                                                                 June 30, 2025 June 30, 2024

Government, agency and corporate obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       $ 44,151   $32,353
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     52,283   45,991
Asset-backed Securities (ABS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                3,210     1,880
Other fund investments a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2,775     2,155
Equity securities b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        255
                                                                                                                                                 349

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $102,674 $82,728

a. Includes PEBP holdings as investments in hedge funds, private equity funds, commingled funds, credit
      strategy funds and real asset funds, at net asset value (NAV) and investments held by the IBRD Surplus-
      Funded Livable Planet Fund (LPF1) and the Grant Facility for Project Preparation (GFPP) at fair value.

b. Relates to PEBP holdings.

                                             127
IBRD manages its investments on a net portfolio basis. As of June 30, 2025, the largest holdings from a single
counterparty within the net investment portfolio was the Government of Japan (7%). The following table
summarizes IBRD's net investment portfolio position:

Table C2: Net investment portfolio

In millions of U.S. dollars

                                                                                                                                     June 30, 2025 June 30, 2024

Investments-Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            $102,674    $82,728
Securities purchased under resale agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     14        79
Securities sold under repurchase agreements, securities lent under securities
                                                                                                                                          (344)      (277)
   lending agreements, and payable for cash collateral received a . . . . . . . . . . . . . .
Derivative assets                                                                                                                          173        812
                                                                                                                                             88        14
      Currency swaps and forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 2          1
      Other b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                263         827

Derivative liabilities                                                                                                               (1,149)      (68)
      Currency swaps and forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          (57)     (450)
      Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           --        --
      Other b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

            Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (1,206)     (518)

Cash held in investment portfolio c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       314       308
Receivable from investment securities traded and other assets . . . . . . . . . . . . . . . .                                            84       438
Payable for investment securities purchased d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              (199)     (561)
IFC PCRF payable e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               (502)     (344)

Net investment portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,098 $82,680

a. Includes $32 million cash collateral received from counterparties under derivative agreements ($21
      million--June 30, 2024).

b. Includes swaptions, options, and futures contracts.
c. This amount is included in Unrestricted cash under Due from banks on the Balance Sheets.
d. There were no liabilities related to short sales ($59 million--June 30, 2024).
e. See Note H -Transactions with affiliated organizations, Liabilities are included in Other liabilities 

      Accounts payable and miscellaneous liabilities on the Balance Sheets.

Table C3: Net investment portfolio composition

In millions of U.S. dollars

                                                                                                                                     June 30, 2025 June 30, 2024

Net investment portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liquid assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 96,043               $78,792
                                                                                                                                                    3,888
PEBP, PCRF and Other holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            5,055

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,098 $82,680

                                                128
IBRD uses derivative instruments to manage the associated currency and interest rate risks in the portfolio. For
details of these instruments, see Note F--Derivative Instruments. After considering the effects of these
derivatives, IBRD's investment portfolio is predominantly denominated in U.S. dollars.

Commercial Credit Risk

For the purpose of risk management, IBRD is party to a variety of financial transactions, certain of which involve
elements of credit risk. Credit risk exposure represents the maximum potential loss due to possible
non-performance by obligors and counterparties under the terms of the contracts. For all securities, IBRD limits
trading to a list of authorized dealers and counterparties. In addition, IBRD may require collateral in connection
with resale agreements and swap agreements. The collateral serves to mitigate IBRD's exposure to credit risk.

Swap Agreements

Credit risk is mitigated through the application of eligibility criteria and volume limits for transactions with
individual counterparties and through the use of mark-to-market collateral arrangements for swap transactions.
IBRD may require collateral in the form of cash or other approved liquid securities from individual
counterparties in order to mitigate its credit exposure.

IBRD has entered into master derivative agreements that contain legally enforceable close-out netting provisions.
These agreements may further reduce the gross credit risk exposure related to the swaps. Credit risk with
financial assets subject to a master derivatives arrangement is further reduced under these agreements to the
extent that payments and receipts with the counterparty are netted at settlement. The reduction in exposure as a
result of these netting provisions can vary due to the impact of changes in market conditions on existing and new
transactions. For more information on netting and offsetting provisions, see Note F--Derivative Instruments.

The following is a summary of the collateral received by IBRD for swap transactions:

Table C4: Collateral received

In millions of U.S. dollars

                                                                                                                                      June 30, 2025 June 30, 2024

Collateral received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         $ 32   $ 21
      Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   488    322
      Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total collateral received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $520             $343

Collateral permitted to be repledged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  $520   $343
Amount of collateral repledged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 --     --
Amount of cash collateral invested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     32     21

Securities Financing Activities

IBRD may engage in securities lending and repurchases, against adequate collateral, as well as secured
borrowing and reverse repurchases (resales) of government and agency obligations, corporate securities, ABS
and Mortgage-backed securities (MBS). These transactions, if any, are conducted under legally enforceable
master netting arrangements, which allow IBRD to reduce its gross credit exposure related to these transactions.
IBRD presents its securities lending and repurchases, as well as resales, on a gross basis on the Balance Sheets.
As of June 30, 2025, there were no amounts that could potentially be offset as a result of legally enforceable
master netting arrangements ($59 million--June 30, 2024).

                               129
Securities lending and repurchase agreements expose IBRD to several risks, including counterparty risk,
reinvestment risk, and risk of a collateral gap (due to increases or decrease in the fair value of collateral pledged).
IBRD has procedures in place to ensure that trading activity and balances under these agreements are below
predefined counterparty and maturity limits, and to actively manage net counterparty exposure, after collateral,
using daily market values. Whenever the collateral pledged by IBRD related to its borrowings under repurchase
agreements and securities lending agreements declines in value, the transaction is re-priced as appropriate by
returning cash or pledging additional collateral.

Transfers of securities by IBRD to counterparties are not accounted for as sales as the accounting criteria for the
treatment as a sale have not been met. Counterparties are permitted to repledge these securities until the
repurchase date.

As of June 30, 2025, liabilities relating to securities transferred under repurchase or securities lending agreements
were $312 million ($256 million--June 30, 2024) and there were no unsettled trades relating to repurchase or
securities lending agreements (Nil --June 30, 2024). There were no replacement trades entered into in
anticipation of maturing trades of a similar amount (Nil--June 30, 2024). As of June 30, 2025 and June 30, 2024,
the remaining contractual maturity of these agreements was up to 30 days. The securities transferred were mainly
comprised of government and agency obligations, equity securities and sovereign debt.

In the case of resale agreements, IBRD receives collateral in the form of liquid securities and is permitted to
repledge these securities. While these transactions are legally considered to be true purchases and sales, the
securities received are not recorded on IBRD's Balance Sheets as the accounting criteria for treatment as a sale
have not been met. As of June 30, 2025 and June 30, 2024, there were no unsettled trades pertaining to securities
purchased under resale agreements. For resale agreements, IBRD received securities with a fair value of
$15 million as of June 30, 2025 ($79 million--June 30, 2024). As of June 30, 2025 and June 30, 2024, none of
these securities had been transferred under repurchase or security lending agreements.

NOTE D--LOANS AND OTHER EXPOSURES
IBRD's loans and other exposures (collectively, "exposures") are generally made to, or guaranteed by, member
countries of IBRD. In addition, IBRD may also make loans to the International Finance Corporation (IFC), an
affiliated organization, without any guarantee. Other exposures include signed loan commitments such as
Deferred Drawdown Options (DDOs) and irrevocable commitments and guarantees. As of June 30, 2025, all of
IBRD's loans were reported at amortized cost.

IBRD uses derivatives to manage the currency risk and the interest rate risk between its loans and borrowings.
For details regarding derivatives used in the loan portfolio, see Note F--Derivative Instruments.

The majority of IBRD's loans outstanding are denominated in U.S. dollars (78%) and euro (20%).

IBRD excludes the interest receivable balance from the amortized cost basis and from the related disclosures.
Accrued interest receivable on loans of $3,297 million June 30, 2025 ($3,706 million--June 30, 2024) is
included in Receivables- Accrued income on loans and guarantee fees receivable in the Balance Sheets.

As of June 30, 2025, 0.5% of IBRD's loans were in nonaccrual status and related to two borrowers (see Table
D6: Loans in nonaccrual status). The total accumulated provision for losses on loans in accrual status and
nonaccrual status accounted for 0.8% of the total loan portfolio. Based on IBRD's internal credit quality
indicators, the majority of loans outstanding are in the medium-risk or high-risk classes.

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A summary of IBRD's loans outstanding by currency and by interest rate characteristics (fixed or variable) is as
follows:

Table D1: Loans outstanding by currency and interest rate structure
In millions of U.S. dollars, except as otherwise noted

                                                                                        June 30, 2025

              U.S. dollars                              Euro  Japanese Yen                             Others Loans Outstanding
            Fixed Variable
                                                        Fixed Variable Fixed Variable Fixed Variable Fixed Variable              Total

Multicurrency terms a . . . . . . . . . . . . . $ 15 $ 402 $ 3 $ 7 $ 4                  $4       $--    $--      $ 22 $ 413 $ 435
                                                                                           7.36    --      --
Weighted average rate (%) b . . . . 9.89 7.25 2.78 7.36 2.78                               --      --      --    7.41 7.26 7.26

Average Maturity (years) c . . . . . 0.11  -- 0.62 -- 0.62                              $1,869   $--    $2,133   0.29  --        0.01
                                                                                           1.00    --      9.41
Variable-spread terms . . . . . . . . . . . . . $ -- $178,794 $ -- $36,763 $ --            8.17    --      6.28  $ -- $219,559 $219,559

Weighted average rate (%) b . . . . --     5.45 -- 3.01 --                              $ 690    $ 380  $ 383    --    5.04 5.04
                                                                                           1.04   9.54     8.03
Average Maturity (years) . . . . . . --    8.74 -- 8.55 --                                 3.76   9.13     6.67  --    8.68 8.68

Fixed-spread terms . . . . . . . . . . . . . . . $17,250 $ 23,172 $13,147 $ 8,074 $ --                           $30,777 $ 32,319 $ 63,096

Weighted average rate (%) b . . . . 3.26 5.88 2.11 3.26 --                                                       2.85 5.15 4.03

Average Maturity (years) . . . . . . 7.10 8.40 9.10 6.62 --                                                      7.98 7.83 7.90

Loans Outstanding . . . . . . . . . . . . . . $17,265 $202,368 $13,150 $44,844 $ 4 $2,563 $ 380 $2,516 $30,799 $252,291 $283,090
      Weighted average rate (%) b . . . . 3.27 5.50 2.11 3.06 2.78 1.02 9.54 9.20 2.85 5.06 4.82
      Average Maturity (years) . . . . . . 7.09 8.68 9.10 8.20 0.62 6.97 9.13 6.34 7.97 8.56 8.49

Loans Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $283,090
Less accumulated provision for loan losses and deferred loan income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,047

Net loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $280,043

Table D1.1

In millions of U.S. dollars, except as otherwise noted

                                                                                        June 30, 2024

              U.S. dollars                              Euro  Japanese Yen                             Others Loans Outstanding
            Fixed Variable
                                                        Fixed Variable Fixed Variable Fixed Variable Fixed Variable              Total

Multicurrency terms a . . . . . . . . . . . . . $ 21 $ 402 $ 8 $ 7 $ 4                  $3       $--    $--      $ 33 $ 412 $ 445
                                                                                           6.43    --      --
Weighted average rate (%) b . . . . 8.37 6.38 2.78 6.43 2.78                               --      --      --    6.32 6.38 6.38

Average Maturity (years) c . . . . . 0.39  -- 1.12 -- 1.09                              $ 334    $--    $2,544   0.65  --        0.05
                                                                                           0.84    --    10.13
Variable-spread terms . . . . . . . . . . . . . $ -- $167,948 $ -- $28,782 $ --            6.69    --      6.15  $ -- $199,608 $199,608
                                                                                                        $ 425
Weighted average rate (%) b . . . . --     6.35 -- 4.40 --                              $ 711    $ 297   10.51   --    6.11 6.11
                                                                                           0.64   8.67     7.17
Average Maturity (years) . . . . . . --    8.52 -- 7.97 --                                 4.18   8.27           --    8.41 8.41

Fixed-spread terms . . . . . . . . . . . . . . . $18,351 $ 23,792 $12,429 $ 7,132 *                              $31,077 $ 32,060 $ 63,137

Weighted average rate (%) b . . . . 3.30 6.88 2.08 4.77 --                                                       2.86 6.32 4.62

Average maturity (years) . . . . . . 7.63 8.96 9.59 7.14 --                                                      8.42 8.43 8.43

Loans Outstanding . . . . . . . . . . . . . . $18,372 $192,142 $12,437 $35,921 $ 4 $1,048 $ 297 $2,969 $31,110 $232,080 $263,190
      Weighted average rate (%) b . . . . 3.30 6.41 2.08 4.47 2.78 0.72 8.67 10.19 2.86 6.14 5.75
      Average Maturity (years) . . . . . . 7.63 8.56 9.59 7.80 1.09 4.97 8.27 6.29 8.42 8.39 8.40

Loans Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $263,190
Less accumulated provision for loan losses and deferred loan income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,954

Net loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $260,236

a. Variable rates for multicurrency loans are based on the weighted average cost of allocated debt.
b. Excludes effects of any waivers of loan interest.
c. For loans past their repayment maturity, average maturity is not computed.
* Indicates amount less than $0.5 million.

                                                        131
The maturity structure of IBRD's loans is as follows:

Table D2: Loans maturity structure

In millions of U.S. dollars

                                                                                                      June 30, 2025

                                                                                                                     Greater than 15

Terms/Rate Type                                                            Up to 1 year 2 to 5 years  6-15 years     years            Total

Multicurrency terms                                                        $ 22      $-- $ --                        $--              $ 22
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       413                                       --                413
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             --               --
                                                                                --                                        --                --
Variable-spread terms                                                       11,329   --               --              33,005           219,559
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,418  63,813 111,412                     2,705            30,777
                                                                              2,527                                     4,059            32,319
Fixed-spread terms                                                                    7,034           18,620
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            10,729           15,004
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

All Loans                                                                   2,440     7,034 18,620                    2,705            30,799
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14,269    74,542 126,416                  37,064           252,291
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total loans outstanding . . . . . . . . . . . . . . . . . . . . . $16,709 $81,576 $145,036 $39,769 $283,090

Table D2.1

In millions of U.S. dollars

                                                                                                      June 30, 2024

                                                                                                                     Greater than 15

Terms/Rate Type                                                            Up to 1 year 2 to 5 years 6 to 15 years   years            Total

Multicurrency terms                                                        $ 24      $ 9$ --                         $--              $ 33
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       412                                       --                412
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . .               --               --
                                                                                --                                        --                --
Variable-spread terms                                                       12,034   --               --              26,321           199,608
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1,719  56,517 104,736                     4,213            31,077
                                                                              2,018                                     4,611            32,060
Fixed-spread terms                                                                   7,038            18,107
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            9,391            16,040
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . .

All Loans                                                                   1,743     7,047 18,107                    4,213            31,110
      Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14,464    65,908 120,776                  30,932           232,080
      Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total loans outstanding . . . . . . . . . . . . . . . . . . . . $16,207 $72,955 $138,883 $35,145 $263,190

Credit Quality of Sovereign Exposures
Sovereign loans constitute the substantial majority of IBRD's exposures.

IBRD's country risk ratings are an assessment of its borrowers' ability and willingness to repay IBRD on time
and in full. These ratings are internal credit quality indicators. Individual country risk ratings are derived on the
basis of both quantitative and qualitative analysis. The components considered in the analysis can be grouped

                                                                  132
broadly into eight categories: political risk, external debt and liquidity, fiscal policy and public debt burden,
balance of payments risks, economic structure and growth prospects, monetary and exchange rate policy,
financial sector risks, and corporate sector debt and vulnerabilities. The analysis also takes into account
Environmental, Social, and Governance (ESG) factors.

Based on the borrower risk ratings, IBRD classifies loans into three credit quality categories--Low Risk,
Medium Risk, and High Risk. These categories, which are described below, are intended to differentiate between
varying levels of borrower credit risk and the associated likelihood of non-timely debt service across IBRD's
loan portfolio.

Low Risk: Exposures in this group generally exhibit strong credit characteristics with minimal uncertainty around
repayment. Borrowers in this category typically demonstrate solid financial performance, consistent and stable
cash flows, and a history of timely debt service. The likelihood of non-timely debt service is considered low.

Medium Risk: Exposures in this group display satisfactory credit profiles, but may be subject to moderate risk
factors, such as country-specific volatility or operational challenges. Borrowers in this category usually exhibit
adequate financial performance, though their resilience to adverse conditions may be more limited. The
likelihood of non-timely debt service is considered moderate to low.

High Risk: Exposures in this category exhibit signs of elevated credit risk. Borrowers in this category may show
weak or deteriorating financial indicators, irregular or delayed payment history, or limited capacity to absorb
external shocks. While these loans remain on accrual status, the likelihood of non-timely debt service is
considered heightened.

IBRD's borrowers' country risk ratings are key determinants in the provision for losses. Country risk ratings are
grouped in pools of borrowers with similar credit ratings for the purpose of the calculation of the expected credit
losses. Exposure for certain countries in accrual status may be individually assessed on the basis that they do not
share common risk characteristics with an existing pool of exposures. All exposures for countries in nonaccrual
status are individually assessed. Country risk ratings are determined in review meetings that take place several
times a year. All countries are reviewed at least once a year, or more frequently, if circumstances warrant, to
determine the appropriate ratings.

An assessment was also performed to determine whether a qualitative adjustment of the loan loss provision was
needed as of June 30, 2025, including consideration of global and macroeconomic events. Management
concluded that a qualitative adjustment beyond the regular application of IBRD's loan loss provision framework
was not warranted.

Overdue Amounts
IBRD considers loans to be past due when a borrower fails to make payment on any principal, interest or other
charges due to IBRD on the dates provided in the contractual loan agreement.

As of June 30, 2025, no principal or interest are overdue by more than three months for loans in accrual status.

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The following tables provide an aging analysis and amounts past due of the loans outstanding:

Table D3: Loans outstanding aging structure

In millions of U.S. dollars

                                                                                     June 30, 2025

                                                                                     Over Total Past

Days past due                                                Up to 45  46-60  61-90  91-180 180     Due        Current a  Total

Risk Class                                                                                          $--        $ 5,903 $ 5,903
      Low . . . . . . . . . . . . . . . . . . . . . . . $-- $-- $-- $-- $--                          --         130,396 130,396
      Medium . . . . . . . . . . . . . . . . . . . . -- -- -- -- --                                    14       145,340 145,354
      High . . . . . . . . . . . . . . . . . . . . . . . 14 -- -- -- --

Loans in accrual status . . . . . . . . . . . . . 14 -- -- -- --                                    14 281,639 281,653

Loans in nonaccrual status . . . . . . . . . . --                      1 42 22 794 859                         578 1,437

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14 $ 1 $ 42 $ 22 $794 $873 $282,217 $283,090 b

a. Represents the principal amounts not yet contractually due.
b. The total amount of loans at amortized cost which contain principal past due amounts was $1,648 million.

Table D3.1

In millions of U.S. dollars

                                                                                     June 30, 2024

                                                                                     Over Total Past

Days past due                                                Up to 45  46-60  61-90  91-180 180     Due        Current a  Total

Risk Class

Low . . . . . . . . . . . . . . . . . . . . . . . $-- $-- $-- $-- $--                               $--        $ 6,935 $ 6,935
                                                                                                     --         124,106 124,106
Medium . . . . . . . . . . . . . . . . . . . . -- -- -- -- --                                          16       130,723 130,739

High . . . . . . . . . . . . . . . . . . . . . . .           5         9 2-- --

Loans in accrual status . . . . . . . . . . . . .                5         9 2-- --                    16       261,764 261,780
Loans in nonaccrual status . . . . . . . . . .                --           1 40 24 661               726             684 1,410

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .  $5        $ 10 $ 42 $ 24 $661          $742       $262,448 $263,190 b

a. Represents the principal amounts not yet contractually due.
b. The total amount of loans at amortized cost which contain principal past due amounts was $1,621 million.

The following tables provide a summary of selected financial information related to loans in nonaccrual status:

Table D4: Loans in nonaccrual status

In millions of U.S. dollars                                                          Accumulated Average       Overdue amounts
Borrower
                                                                              Recorded Provision for recorded             Interest and

                                                             Nonaccrual since investment loan losses investment Principal Charges

Belarus . . . . . . . . . . . . . . . . . . . . . . . . . . October 2022 1,012       99             989 434               136

Zimbabwe . . . . . . . . . . . . . . . . . . . . . . . October 2000           425    213            426 425               715

Total - June 30, 2025 . . . . . . . . . . . . . . .                           $1,437 $312 $1,415 $859 $851

Total - June 30, 2024 . . . . . . . . . . . . . . .                           $1,410 $324 $1,418 $726 $767

                                                                       134
During the fiscal year ended June 30, 2025, no loans were placed in nonaccrual status or restored to accrual
status.

During the fiscal year ended June 30, 2025, interest and other revenue not recognized as a result of loans being in
nonaccrual status was $79 million ($80 million--June 30, 2024 and $69 million--June 30, 2023).

In addition, during the fiscal year ended June 30, 2025, no interest income was recognized on loans in nonaccrual
status upon receipt of payment ($4 million--June 30, 2024 and $2 million--June 30, 2023).

IBRD considers the signature date of a loan agreement as the best indicator of the decision point in the
origination process, rather than the disbursement date. The tables below disclose the balances of IBRD's Loans
outstanding, classified by the year the loan agreement was signed.

Table D5: Loans outstanding vintage disclosure

In millions of U.S. dollars

                                                             June 30, 2025

                                                                                   CAT     CAT                  Loans

                                                                                   DDOs DDOs outstanding

                                                   Fiscal Year of Origination      Disbursed Converted as of
                                           2024 2023 2022 2021
                                                                                   and to Term June 30,

                             2025                                                  Prior Years Revolving Loans  2025

Risk Class                                                                         $--     $ -- $ 5,903
      Low . . . . . . . . . . . . . . . $ 15 $ 148 $ -- $ -- $ -- $ 5,740           449     2,632 130,396
      Medium . . . . . . . . . . . . 7,159 8,626 9,501 7,702 10,850 83,477
      High . . . . . . . . . . . . . . . 11,095 14,781 8,294 13,031 11,124 86,124      1      904 145,354

Loans in accrual status . . . . 18,269 23,555 17,795 20,733 21,974 175,341 450             3,536 281,653

Loans in nonaccrual

status . . . . . . . . . . . . . . . . --  --    --    --                    -- 1,437 --   --                   1,437

Total . . . . . . . . . . . . . . . . . . $18,269 $23,555 $17,795 $20,733 $21,974 $176,778 $450 $3,536 $283,090

Table D5.1

In millions of U.S. dollars

                                                             June 30, 2024

                                                                                   CAT     CAT                  Loans

                                                                                   DDOs DDOs outstanding

                                                 Fiscal Year of Origination        Disbursed Converted as of

                                                                                   and to Term June 30,

                             2024          2023  2022  2021                  2020  Prior Years Revolving Loans  2024

Risk Class                                                                         $--     $ -- $ 6,935
      Low . . . . . . . . . . . . . $ 150 $ -- $ 250 $ -- $ -- $ 6,535              302     2,334 124,106
      Medium . . . . . . . . . . 7,885 8,445 6,893 10,126 8,421 79,700
      High . . . . . . . . . . . . . 11,645 7,402 11,897 9,951 8,486 80,454            1      903 130,739

Loans in accrual status . . . 19,680 15,847 19,040 20,077 16,907 166,689 303               3,237 261,780

Loans in nonaccrual

status . . . . . . . . . . . . . . --      --    --    --                    115 1,295 --  --                   1,410

Total . . . . . . . . . . . . . . . . . $19,680 $15,847 $19,040 $20,077 $17,022 $167,984 $303 $3,237 $263,190

The Catastrophe Deferred Draw-Down Option (CAT-DDO) promotes countries' resilience to disasters and
expands the range of IBRD's crisis instruments. It is a contingent credit line that provides immediate liquidity to

                                                                  135
countries in the aftermath of a catastrophe. The amount of Catastrophe Deferred Drawdown Option (CAT DDOs)
converted to term loans during the fiscal year ended June 30, 2025, is $300 million ($500 million--fiscal year
ended June 30, 2024).

Accumulated Provision for Losses on Loans and Other Exposures

Management determines the appropriate level of accumulated provision for losses, which reflects the expected
losses inherent in IBRD's exposures.

Delays in receiving loan payments result in economic losses to IBRD since it does not charge additional interest
on any overdue interest or loan charges. These economic losses are estimated as the difference between the
present value of payments of interest and charges made according to the related loan's contractual terms and the
present value of its expected future cash flows. It is IBRD's practice not to write off its loans. Historically, all
contractual obligations associated with exposures in nonaccrual status were eventually cleared, thereby allowing
borrowers to emerge from nonaccrual status. To date, no loans have been written off by IBRD.

Management reassesses the adequacy of the accumulated provision on a quarterly basis and adjustments to the
accumulated provision are recorded as a charge to or release of provision in the Statements of Income.

Changes to the accumulated provision for losses on loans and other exposures are summarized below:

Table D6: Accumulated provision

In millions of U.S. dollars                                                                                                       June 30, 2025

Accumulated provision, beginning of the fiscal year . . . . . . . . . . . . . . . .                                    Loans      Loan
Provision - release . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               outstanding commitments Other a   Total
Accumulated provision, end of the fiscal year . . . . . . . . . . . . . . . . . . . . .
                                                                                                                       $ 2,360 $514              $92    $2,966
                                                                                                                                                            (75)
                                                                                                                       (44)       (23)           (8)         73

                                                                                                                       50         19             4      $2,964

                                                                                                                       $ 2,366 $510              $88

Composed of accumulated provision for losses on:                                                                       $ 2,054
         Loans in accrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     312
         Loans in nonaccrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                       $ 2,366
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loans, end of the fiscal year:                                                                                         $281,653
      Loans in accrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  1,437
      Loans in nonaccrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                       $283,090
Total loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                 136
Table D6.1:

In millions of U.S. dollars                                                                                                    June 30, 2024

Accumulated provision, beginning of the fiscal year . . . . . . . . . . . . . . . .                           Loans            Loan
Provision - charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      outstanding commitments Other a            Total
Accumulated provision, end of the fiscal year . . . . . . . . . . . . . . . . . . . . .
                                                                                                              $ 2,336 $452                    $90       $2,878
                                                                                                                                                             94
                                                                                                              29               64             1              (6)

                                                                                                                     (5)       (2)            1         $2,966

                                                                                                              $ 2,360 $514                    $92

Composed of accumulated provision for losses on:

Loans in accrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,036

Loans in nonaccrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  324

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,360

Loans, end of the fiscal year:                                                                                $261,780
      Loans in accrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         1,410
      Loans in nonaccrual status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              $263,190
Total loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a. Primarily relates to guarantees given. For more details, see Guarantees section.

                                                  Balance Sheets                                              Reported as:
                                                                                                                                  Statements of Income

Accumulated Provision for Losses on:                                                                          Provision for losses on loans and
Loans outstanding . . . . . . . . . . . . . . . . . . . . . . Accumulated provision for loan                  other exposures

                                                         losses

Loan commitments and other exposures . . . . . Other liabilities                                              Provision for losses on loans and
                                                                                                              other exposures

The accumulated provision for losses on loan and other exposures as of June 30, 2025 was $2,964 million,
compared to $2,966 million as of June 30, 2024. The decrease of $2 million in the accumulated provision for
losses on loan and other exposures is attributable to a release of $75 million primarily driven by a decrease in
loss severity and expected default frequency offset by increase in exposure, and foreign currency translation
losses of $73 million.

IBRD considers loans to be past due when a borrower fails to make payment on any principal, interest or other
charges due to IBRD on the dates provided in the contractual loan agreement.

Guarantees
Guarantees provided
Guarantees of $7,465 million were outstanding as of June 30, 2025 ($7,168 million--June 30, 2024), including
guarantees provided under the EEA. These amounts represent the maximum potential amount of undiscounted
future payments that IBRD could be required to make under these guarantees, and are not included in the Balance
Sheets. These guarantees have original maturities ranging between 10 and 23 years and expire in decreasing
amounts through 2047.

As of June 30, 2025, liabilities related to IBRD's obligations under guarantees included the obligation to stand
ready of $288 million ($296 million--June 30, 2024), and the accumulated provision for guarantee losses of
$63 million ($71 million--June 30, 2024). These are included in Other liabilities--Accounts payable and
miscellaneous liabilities on the Balance Sheets.

During the fiscal year ended June 30, 2025 and June 30, 2024, no guarantees provided by IBRD were called.

                                                                  137
Exposure Exchange Agreements

IBRD participates in Exposure Exchange Agreements (EEAs) which are recognized as financial guarantees in the
financial statements. Information on the location and amounts associated with the EEAs executed with the
African Development Bank and Inter-American Development Bank included in the Balance Sheets is presented
in the following table:

Table D7: Amounts associated with EEAs

In millions of U.S. dollars

June 30, 2025                                             June 30, 2024

(Stand                                                    (Stand

ready (Provision)                                         ready (Provision)

Notional obligation) Recoverable Notional obligation) Recoverable                      Location on the
                                                                                       Balance Sheets
amount Asset                                              asset amount Asset    asset

Guarantees provided . . . . . . . . . . . $ 3,609 $(109)  $(17) $ 3,609 $(129)  $(25) Other liabilities
Guarantees received . . . . . . . . . . . (3,609) 109       13 (3,611) 129        19 Other assets

$ -- $--                                                  $ (4) $ (2) $ --      $ (6)

Guarantees received

As of June 30, 2025, IBRD had received third-party financial guarantees, including guarantees received under the
EEA, of $14,947 million ($12,461 million as of June 30, 2024). In addition, during the year, IBRD received a
notional value of $1.1 billion of portfolio guarantees under PGP from its shareholders.

Portfolio guarantees are accounted for as financial guarantees and the related recoverable asset of $136 million as
of June 30, 2025 (Nil- as of June 30, 2024) is presented as Other assets on the Balance Sheets. Financial
guarantees received protect IBRD against the risk of loss related to loans in IBRD's portfolio and increase
IBRD's lending capacity.

Waivers of Loan Charges

The Executive Directors have approved waivers of certain charges on eligible loans. These include a portion of
interest on loans, a portion of the commitment charge on undisbursed balances, and a portion of the front-end fee.
In addition, in October 2024, as part of the adjustments to IBRD's loan pricing, the Executive Directors approved
the waiver of future prepayment premiums on existing loans, as applicable. The forgone income resulting from
these waivers was $11 million for year ended June 30, 2025 ($9 million--June 30, 2024 and
$16 million--June 30, 2023).

Concentration risk

Loan revenue comprises interest, commitment fees, loan origination fees and prepayment premiums, net of
waivers. For the fiscal year ended June 30, 2025, there was no country that contributed more than 10% to the
total loan revenue.

              138
IBRD's loan revenue and associated loans outstanding by geographic region is presented in the following table:

Table D8: Loan revenue and associated outstanding loan balances by geographic region

In millions of U.S. dollars

                                                                                                            For the fiscal year ended and as of

                                                                                                      June 30, 2025        June 30, 2024

                                                                                                      Loan      Loans      Loan                  Loans

Region                                                                                                Revenue a Outstanding Revenue a Outstanding

Latin America and the Caribbean . . . . . . . . . . . . . . . . . . . . . . . . . . .                 $ 4,481   $ 83,935   $ 4,674   $ 80,934
East Asia and Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2,953     54,000     3,154     52,621
Europe and Central Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              2,790     62,017     2,769     54,838
Middle East and North Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 1,811     39,180     1,860     35,300
South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,663     28,465     1,655     26,415
Eastern and Southern Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  623     12,124       524     11,014
Western and Central Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 110      3,369        76      2,068

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,431 $283,090 $14,712 $263,190

a. Excludes $1,022 million interest income from loan related derivatives for the fiscal year ended June 30,
      2025 ($1,268 million-- fiscal year ended June 30, 2024). Includes commitment charges of $152 million for
      the fiscal year ended June 30, 2025 ($149 million--fiscal year ended June 30, 2024).

For the fiscal year ended June 30, 2025, Interest revenue--Loans, net in the Statements of Income was
$15,301 million ($15,831 million--June 30, 2024 and $10,522 million--June 30, 2023). This includes
$1,022 million of interest income, net related to loan related derivatives associated with the Loan portfolio
(interest income, net of $1,268 million June 30, 2024 and $367 million--June 30, 2023).

NOTE E--BORROWINGS

IBRD issues unsubordinated and unsecured fixed and variable rate debt in a variety of currencies. These
borrowings are reported at fair value. IBRD has issued hybrid capital at variable rates to shareholders, which is
subordinated to all other debt, and is reported at amortized cost. Variable rates are primarily based on exchange
rates or market interest rates.

As of June 30, 2025, 98% of the instruments were classified as Level 2 within the fair value hierarchy. In
addition, most of these instruments were denominated in U.S. dollars and euro (62% and 16%, respectively, refer
Table E3).

IBRD uses derivatives, reported at fair value, to manage the currency risk and the interest rate risk between its
loans and borrowings. For details regarding the derivatives used, see Note F--Derivative Instruments.

After the effect of these derivatives, the borrowing portfolio carried variable interest rates, with a weighted
average cost of 4.40% as of June 30, 2025 (5.54% as of June 30, 2024).

A summary of IBRD's borrowings at fair value, is as follows (for details on principal due upon maturity, see
Note J--Fair Value Disclosures):

                             139
Table E1: Borrowings and borrowing-related derivatives, at fair value

In millions of U.S. dollars

                                                                                                                                        June 30, 2025 June 30, 2024

Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $305,679         $261,790
                                                                                                                                                      7,427
Currency swaps, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             1,788        17,900

Interest rate swaps, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,277

Total                                                                                                                                   $319,744 $287,117

As of June 30, 2025, borrowings reported at amortized cost were $482 million related to IBRD's issuances of
hybrid capital which represents the outstanding principal of these instruments. The majority of holders of hybrid
capital as of June 30, 2025, entered into separate agreements with IBRD that allow them to redeem the hybrid
capital to satisfy the payment condition for their paid-in portion of any future capital increase.

For the fiscal year ended June 30, 2025, Borrowing expenses, net in the Statements of Income was
$14,920 million ($15,215 million--June 30, 2024 and $9,562 million--June 30, 2023). This includes
$6,470 million of interest expense, net related to derivatives associated with the borrowings (interest expense, net
of $7,781 million-- June 30, 2024 and interest expense, net of $4,237 million--June 30, 2023).

The following table provides a summary of the interest rate characteristics of IBRD's borrowings:

Table E2: Interest rate composition of Borrowings

In millions of U.S. dollars, except as otherwise noted

                                                             June 30, 2025 WAC a (%) June 30, 2024 WAC a (%)

Fixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $288,323 2.81 $253,337 2.42

Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,843 6.61                            29,494 8.40

Borrowings b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $321,166 3.20% $282,831 3.04%

Fair Value Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,005)                                          (21,041)

Total Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $306,161                                       $261,790

a. WAC refers to weighted average borrowings cost as of the reporting date.
b. At amortized cost.

The currency composition of IBRD's borrowings before derivatives was as follows:

Table E3: Currency composition of Borrowings (before derivatives)

                                                                                                                                        June 30, 2025 June 30, 2024

U.S. Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       62.1%     62.6%
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16.3      15.1
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    21.6      22.3

                                                                                                                                        100.0% 100.0%

                                                        140
The maturity structure of IBRD's borrowings outstanding was as follows:

Table E4: Maturity structure of Borrowings

In millions of U.S. dollars

                                                                                                                                    June 30, 2025 June 30, 2024

Less than 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    $ 47,162   $ 41,955
Between
                                                                                                                                       37,482     32,883
      1-2 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      36,816     31,082
      2-3 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      32,710     29,994
      3-4 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      39,117     32,042
      4-5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    112,874      93,834
Thereafter a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                                                                                                    $306,161 $261,790

a Includes hybrid capital.

IBRD's borrowings at fair value have original maturities ranging from 20 days to 50 years, with the final
maturity in 2073. Hybrid capital is a perpetual financial instrument, accounted for at amortized cost.

NOTE F--DERIVATIVE INSTRUMENTS

IBRD uses derivative instruments in its investment, loan and borrowing portfolios, and for asset/liability
management purposes. It also offers derivative intermediation services to clients and, concurrently, enters into
offsetting transactions with market counterparties.

The following table summarizes IBRD's use of derivatives in its various financial portfolios:

Portfolio                                  Derivative instruments used                 Purpose / Risk being managed

Risk management purposes:     Currency swaps, currency forward             Manage currency and interest rate risk
      Investments                contracts, interest rate swaps, options,
                                 swaptions and futures contracts,          Manage currency risk and interest rate
      Loans                      to-be-announced (TBA) securities             risk between loans and borrowings
      Borrowings
      Other asset/liability   Currency swaps and interest rate swaps       Manage currency risk and interest rate
      management derivatives                                                  risk between loans and borrowings
                              Currency swaps and interest rate swaps
                                                                           Manage currency risk and the duration of
                              Currency swaps and interest rate swaps          IBRD's equity

Other purposes:               Currency swaps, currency forward             Assist clients in managing risks
      Client operations          contracts, and interest rate swaps

Under client operations, derivative intermediation services are provided to the following:

Borrowing Countries: Currency and interest rate swap transactions are executed between IBRD and its
borrowers under master derivatives agreements.

Non-Affiliated Organizations: IBRD has a master derivatives agreement with the International Finance Facility
for Immunisation (IFFIm), under which several transactions have been executed.

                                                                  141
Affiliated Organizations: Derivative contracts are executed between IBRD and IDA, under an agreement
allowing IBRD to intermediate derivative contracts on behalf of IDA.

The derivatives in the related tables of Note F are presented on a net basis by instrument. A reconciliation to the
presentation in the Balance Sheets is shown in Table F1.

Offsetting assets and liabilities

IBRD enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting agreements with
substantially all of its derivative counterparties. These legally enforceable master netting agreements give IBRD
the right to liquidate securities held as collateral and to offset receivables and payables with the same
counterparty in the event of default by the counterparty.

The following tables summarize the gross and net derivative positions by instrument type. Instruments that are in
a net asset position are included in the Derivative Assets columns and instruments that are in a net liability
position are included in the Derivative Liabilities columns. The effects of the ISDA master netting agreements
are applied on an aggregate basis to the total derivative asset and liability positions and are presented net of any
cash collateral received on the Balance Sheets. The net derivative asset positions in the tables below have been
further reduced by any securities received as collateral to show IBRD's net exposure on its derivative asset
positions.

Table F1: Derivative assets and liabilities before and after netting adjustments

In millions of U.S. dollars

                                                                                                                 June 30, 2025  June 30, 2024

                                                                                                                 Derivative Derivative Derivative Derivative
                                                                                                                   Assets Liabilities Assets Liabilities

Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,559 $17,523 $ 7,977 $24,759

Currency swaps a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,115 7,192 4,057 9,907

Other b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2   --         1         --

Gross Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,676 $24,715 $12,035 $34,666

Less:

Amounts subject to legally enforceable master netting agreements . . . . . 11,978 d 12,261 e 11,558 d 11,938 e

Cash collateral received c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             32  --         21        --

Net derivative position on the Balance Sheet . . . . . . . . . . . . . . . . . . . . $ 666 $12,454 $ 456 $22,728

Less:                                                                                                                                298
Securities collateral received c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442                          $ 158

Net derivative exposure after collateral . . . . . . . . . . . . . . . . . . . . . . . . $ 224

a. Includes forward contracts.
b. Relate to swaptions, options and futures contracts.
c. Does not include excess collateral received.
d. Includes $36 million Credit Valuation Adjustment (CVA) ($29 million--June 30, 2024).
e. Includes $319 million Debit Valuation Adjustment (DVA) ($409 million--June 30, 2024).

                             142
The following tables provide information about the credit risk exposures at fair value of IBRD's derivative
instruments by portfolio, before the effects of master netting arrangements and collateral:

Table F2: Credit risk exposure of the derivative instruments a

In millions of U.S. dollars                                                                                         June 30, 2025
Portfolio
                                                                                                                    Currency swaps (including

                                                                                               Interest rate swaps  forward contracts)         Total

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $ 88                 $ 173                      $ 261
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4,986                1,054                        6,040
Client operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           107                  352                          459
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1,985                3,536                        5,521
Other asset/liability management derivatives . . . . . . . . . . . . .                            393                  --                           393

Total Exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 $7,559               $5,115                     $12,674

Table F2.1

In millions of U.S. dollars                                                                                         June 30, 2024
Portfolio
                                                                                                                    Currency swaps (including

                                                                                               Interest rate swaps  forward contracts)         Total

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $ 14                 $ 812                      $ 826
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5,893                1,314                        7,207
Client operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           274                  424                          698
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1,555                1,507                        3,062
Other asset-liability management derivatives . . . . . . . . . . . . .                            241                  --                           241

Total Exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 $7,977               $4,057                     $12,034

a. Excludes exchange traded instruments as they are generally subject to daily margin requirements and are
      deemed to have no material credit risk.

The volume of derivative contracts is measured using the U.S. dollar equivalent notional balance. The notional
balance represents the face value or reference value on which the calculations of payments on the derivative
instruments are determined. As of June 30, 2025, the notional amounts of IBRD's derivative contracts
outstanding were as follows: interest rate swaps $445,827 million ($436,783 million--June 30, 2024), currency
swaps $129,923 million ($120,483 million--June 30, 2024), long positions of other derivatives $304 million
($280 million--June 30, 2024), and short positions of other derivatives $115 million ($201 million--June 30,
2024).

IBRD is not required to post collateral under its derivative agreements as long as it maintains a triple-A credit
rating. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were
in a liability position as of June 30, 2025 was $12,627 million ($22,858 million--June 30, 2024). IBRD has not
posted any collateral with these counterparties due to its triple-A credit rating.

If the credit risk related contingent features underlying these agreements were triggered to the extent that IBRD
would be required to post collateral as of June 30, 2025, the amount of collateral that would need to be posted
would be $9,241 million ($18,593 million--June 30, 2024). Subsequent triggers of contingent features would
require posting of additional collateral, up to a maximum of $12,627 million ($22,858 million--June 30, 2024).
IBRD received collateral totaling $520 million as of June 30, 2025 ($343 million--June 30, 2024), in relation to
swap transactions (see Note C--Investments).

                             143
The following table provides information on the unrealized mark-to-market gains and losses on the non- trading
derivatives and their location on the Statements of Income:

Table F3: Unrealized mark-to-market gains or losses on non-trading derivatives

In millions of U.S. dollars                                                                 Reported as:         2025 2024  2023
Type of instrument a
                                                                          Unrealized mark-to-market gains        $6,283 $3,324 $(4,948)
Interest rate swaps . . . . . . . . . . . . . . . . . . .              (losses) on non- trading portfolios, net
Currency swaps (including forward                                                                                 1,897 1,145 (867)
                                                                                                                 $8,180 $4,469 $(5,815)
   contracts ) . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a. For disclosures related to derivatives in trading portfolio, see Table F4.

All of the instruments in IBRD's investment portfolio are held for trading purposes. Within the investment
portfolio, IBRD holds highly rated fixed income securities, equity securities and derivatives. The trading
portfolio is primarily held to ensure the availability of funds to meet future cash flow requirements and for
liquidity management purposes.

The following table provides information on the amount of unrealized mark-to-market gains and losses on the net
InvestmentTrading portfolio and their location on the Statements of Income:

Table F4: Unrealized mark-to-market gains or losses on net investment-trading portfolio

In millions of U.S. dollars                                                                   Reported as:       2025 2024 2023

Type of instrument a                                                   Unrealized mark-to-market gains (losses)  $ 92 $ 7 $10
      Fixed income . . . . . . . . . . . . . . . . . . . . . .           on Investments-Trading portfolio, net    122 84 74
      Equity and other fund investments b . . . .                                                                $214 $91 $84

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a. Amounts associated with each type of instrument include gains and losses on both derivative instruments
      and investment securities.

b. Related to PEBP holdings and investments related to LPF1 and GFPP.

                                                                       144
NOTE G--RETAINED EARNINGS AND BOARD OF GOVERNORS APPROVED TRANSFERS
Retained earnings are comprised of the following components:

Table G1: Retained earnings composition

In millions of U.S. dollars

                                                                                                                                       June 30, 2025 June 30, 2024

Special reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $ 293     $ 293
General reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         34,058    33,224
Pension reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       987       681
Cumulative fair value adjustments a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         --        100
Unallocated net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                1,390     1,103
Restricted retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  2,915     2,513
Other reserves b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             11        11
                                                                                                                                            729       358

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,383 $38,283

a. Unrealized mark-to-market gains (losses), net related to non-trading portfolios reported at fair value.
b. Comprised of $324 million of currency remeasurement gains/losses, net ($251 million--June 30, 2024),

      $301 million ( $101 million - June 30, 2024) and $100 million ( Nil- June 30, 2024) balances available for
      LPF1 and the GFPP, respectively, and $4 million revenue from prior years which is set aside for a
      dedicated purpose ( $6 million--June 30, 2024).

Board of Governors-approved transfers that were expensed during the stated fiscal years are included in the
following table:

Table G2: Board of Governors-approved transfers expensed

In millions of U.S. dollars

Transfers funded from:                                                                                                                 2025 2024 2023

IDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $515 $291 $117
Trust fund for Gaza and West Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 80 80
LPF1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * -- 24

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $815 $371 $221

* Indicates amount less than $0.5 million.

On September 9, 2024, IBRD's Board of Governors approved transfers from Surplus of $100 million to the Trust
Fund for Gaza and the West Bank. On September 18, 2024, IBRD's Board of Governors approved an additional
transfer of $200 million from Surplus to the Trust Fund for Gaza and the West Bank.

On September 18, 2024, IBRD's Board of Governors approved a transfer of $515 million to the International
Development Association (IDA).

There were no amounts payable for the transfers approved by the Board of Governors as of June 30, 2025, and
June 30, 2024.

                                            145
NOTE H--TRANSACTIONS WITH AFFILIATED ORGANIZATIONS

IBRD transacts with affiliated organizations by providing loans, administrative, derivative and investment
intermediation services, and through its pension and other postretirement benefit plans.

In addition, IBRD provides transfers to IDA out of its net income, upon approval by the Board of Governors (see
Note G--Board of Governors approved transfers).

IBRD had the following receivables from (payables to) its affiliated organizations:

Table H1: IBRD's receivables and payables with affiliated organizations

In millions of U.S. dollars

                                                            June 30, 2025                June 30, 2024

                                                       IDA  IFC MIGA Total          IDA  IFC MIGA Total

Receivable (payable) for                               $ 631 $ (64) $ 17 $ 584 $ 279 $ 1 $ 16 $ 296
   administrative services, net . . . . . .
                                                       (721) (502) -- (1,223) (489) (344) --            (833)
Payable for PCRF investments . . . . .
Pension and other postretirement                       (1,086) (859) (34) (1,979) (906) (774) (30) (1,710)

   benefits . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . $(1,176) $(1,425) $ (17) $(2,618) $(1,116) $(1,117) $ (14) $(2,247)

The receivables from (payables to) these affiliated organizations are reported on the Balance Sheets as follows:

Receivables / Payables related to:                               Reported as:

Administrative services                                          Other assets
PCRF investments                                                 Other liabilities
Pension and other postretirement benefits                        Other liabilities

Administrative Services

Expenses

Expenses jointly incurred by IBRD and IDA are allocated based on an agreed cost-sharing methodology, and
amounts are settled quarterly. For the fiscal year ended June 30, 2025, IBRD's administrative expenses exclude
the share of expenses allocated to IDA of $1,989 million ($1,750 million--fiscal year ended June 30, 2024 and
$1,744 million fiscal year ended June 30, 2023).

Revenue

Revenue jointly earned by IBRD and IDA is allocated based on an agreed revenue-sharing methodology and
amounts are settled quarterly. For the fiscal year ended June 30, 2025, IBRD's Non-interest revenue excludes
revenue allocated to IDA of $330 million ($326 million--fiscal year ended June 30, 2024 and $280 million fiscal
year ended June 30, 2023). IBRD's share of revenue jointly earned is included in Revenue from externally
funded activities on the Statements of Income. This revenue also includes revenue from contracts with clients
that are not affiliated with IBRD and are as follows:

                                                            146
Table H2: Revenue from contracts with clients

In millions of U.S. dollars

                                                                                                                                   2025     2024     2023

Trust fund fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 179 $ 192 $ 119

Reimbursable advisory services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   96       91             99

Asset management services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                35       33             31

Total                                                                                                                              $ 310 $ 316 $ 249

Of which:
      IBRD's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 157 $ 163 $ 130
      IDA's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 153 119

Each revenue stream represents compensation for services provided and the related revenue is recognized over
time.

When IBRD performs services, its rights to consideration are deemed unconditional and are classified as
receivables. IBRD also has an obligation to provide certain services for which it has received consideration in
advance. Such consideration is presented as a contract liability and is subsequently recognized as revenue when
the related performance obligation is satisfied.

The following table shows IBRD's receivables and contract liabilities related to revenue from contracts with
clients:

Table H3: Receivables and contract liabilities related to revenue from contracts with clients

In millions of U.S. dollars

                                                                                                                                   June 30, 2025 June 30, 2024

Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $137              $111
Contract liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    158               185

The amount of fee revenue associated with services provided to affiliated organizations that is included in
Revenue from externally funded activities in the Statements of Income, is as follows:

Table H4: Fee revenue from affiliated organizations

In millions of U.S. dollars

                                                                                                                                   2025     2024     2023

Fees charged to IFC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 109 $ 105 $ 102

Fees charged to MIGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     7        7        7

Investments
These relate to investments that IBRD has made on behalf of IFC associated with the PCRF and are included in
Investments-Trading on IBRD's Balance Sheets. The corresponding payable to IFC is included in Other
liabilities--Accounts payable and miscellaneous liabilities on IBRD's Balance Sheets. As a result, there is no
impact on IBRD's net asset value from these transactions.

Pension and Other Postretirement Benefits
The payable to IDA represents IDA's net share of prepaid costs for pension and other postretirement benefit
plans and PEBP assets. These will be realized over the life of the pension plan participants. The payables to IFC
and MIGA represent their respective share of PEBP assets.

                                                                  147
The PEBP assets are managed by IBRD and are part of the investment portfolio. For Pension and Other
Postretirement Benefits related disclosures, see Note K--Pension and Other Postretirement Benefits.

NOTE I--ACCUMULATED OTHER COMPREHENSIVE INCOME
Comprehensive income or loss consists of net income and other gains and losses affecting equity that, under U.S.
GAAP, are excluded from net income. Other comprehensive income (loss) comprises currency translation
adjustments on assets and liabilities denominated in euro, DVA on Fair Value Option elected liabilities, and
pension related items. These items are presented in the Statements of Comprehensive Income.

The following tables present the changes in Accumulated Other Comprehensive Income (AOCI):

Table I1: AOCI/AOCL changes

In millions of U.S. dollars

                                                                                Balance,    Changes        2025    Net Changes  Balance, end
                                                                              beginning of  in AOCI                 during the  of the fiscal
                                                                                                      Amounts
                                                                                the fiscal           reclassified     period         year
                                                                                  year
                                                                                                       into net
                                                                                                       income

Cumulative Translation Adjustments . . . . . . . . . . . . . .                $ (445) $1,281         $--           $1,281       $ 836
DVA on Fair Value Option elected liabilities . . . . . . .                       673 1,009             (18)           991        1,664
Unrecognized Net Actuarial Gains (Losses) on
                                                                               3,741 3,484             (64) a       3,420        7,161
   Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized Prior Service (Costs) Credits on                                     (15) --                8a              8           (7)

   Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total AOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,954 $5,774 $ (74) $5,700 $9,654

Table I1.1:

In millions of U.S. dollars

                                                                                Balance,    Changes        2024    Net Changes  Balance, end
                                                                              beginning of  in AOCL                 during the  of the fiscal
                                                                                                      Amounts
                                                                                the fiscal           reclassified     period         year
                                                                                  year
                                                                                                       into net
                                                                                                       income

Cumulative Translation Adjustments . . . . . . . . . . . . .                  $ (295)       $(150)   $--           $(150)       $ (445)
DVA on Fair Value Option elected liabilities . . . . . . .                       351          321        1           322           673
Unrecognized Net Actuarial Gains (Losses) on
                                                                               3,490          318      (67) a        251         3,741
   Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized Prior Service (Costs) Credits on                                     (23)        --         8a             8           (15)
                                                                              $3,523        $ 489    $ (58)        $ 431        $3,954
   Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total AOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                                              148
Table I1.2:

In millions of U.S. dollars

                                                                                Balance,    Changes        2023    Net Changes  Balance, end
                                                                              beginning of  in AOCL                 during the  of the fiscal
                                                                                                      Amounts
                                                                                the fiscal           reclassified     period         year
                                                                                  year
                                                                                                       into net
                                                                                                       income

Cumulative Translation Adjustments . . . . . . . . . . . . .                  $ (790) $ 495          $--           $ 495        $ (295)
DVA on Fair Value Option elected liabilities . . . . . . .                                              47             (13)        351
Unrecognized Net Actuarial Gains (Losses) on                                       364      (60)
                                                                                                       (28) a       2,103        3,490
   Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       1,387 2,131
Unrecognized Prior Service (Costs) Credits on                                                           20 a            20          (23)
                                                                                   (43) --
   Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total AOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918 $2,566 $ 39 $2,605 $3,523

a. See Note K--Pension and Other Post Retirement Benefits.

NOTE J-- FAIR VALUE DISCLOSURES

Valuation Methods and Assumptions

As of June 30, 2025 and June 30, 2024, IBRD had no assets or liabilities measured at fair value on a non-
recurring basis.

Due from Banks

The carrying amount of unrestricted and restricted cash is considered a reasonable estimate of the fair value of
these positions.

Loans and Loan commitments
There were no loans carried at fair value as of June 30, 2025 or June 30, 2024. IBRD's loans and loan
commitments would be classified as Level 3 within the fair value hierarchy.

Summarized below are the techniques applied in determining the fair values of IBRD's financial instruments.

Investment securities

Investment securities are classified based on management's intention on the date of purchase, their nature, and
IBRD's policies governing the level and use of such investments. As of June 30, 2025, all of the financial
instruments in IBRD's investment portfolio were classified as trading. These securities are carried and reported at
fair value, or at face value or NAV, which approximates fair value. Where available, quoted market prices are
used to determine the fair value of trading securities. Examples include most government and agency securities,
mutual funds, exchange-traded equity securities and ABS.

For instruments for which market quotations are not available, fair values are determined using model- based
valuation techniques, whether internally generated or vendor-supplied, that include the standard discounted cash
flow method using observable market inputs such as yield curves, credit spreads, and conditional prepayment
rates. Where applicable, unobservable inputs such as conditional prepayment rates, probability of default and loss
severity are used. Unless quoted prices are available, time deposits are reported at face value, which
approximates fair value, as they are short term in nature.

                                                                              149
Securities purchased under resale agreements, Securities sold under repurchase agreements, and Securities
lent under securities lending agreements
These securities are of a short-term nature and reported at face value, which approximates fair value.

Borrowings
(i) Discount notes and vanilla bonds
Discount notes and vanilla bonds issued by IBRD are valued using the standard discounted cash flow method,
which relies on observable market inputs such as yield curves, foreign exchange rates, basis spreads and funding
spreads.

(ii) Structured bonds
Structured bonds issued by IBRD have coupon or repayment terms linked to the level or the performance of
interest rates, foreign exchange rates, equity indices, catastrophic events, or commodities. The fair value of the
structured bonds is generally derived using the discounted cash flow method based on estimated future pay-offs
determined by applicable models and computation of embedded optionality such as caps, floors and calls. A wide
range of industry standard models such as one factor Hull-White, Generalized Forward Market Model and Black-
Scholes are used depending on the specific structure. These models incorporate observable market inputs, such as
yield curves, foreign exchange rates, basis spreads, funding spreads, interest rate volatilities, equity index
volatilities and equity indices. Where applicable, the models also incorporate significant unobservable inputs
such as correlations between relevant market data and long-dated interest rate volatilities. Generally, the
movements in correlations are considered to be independent of movements in long-dated interest rate volatilities.

(iii) Borrowings, at amortized cost
The fair value of borrowings measured at amortized cost would be classified as Level 3 within the fair value
hierarchy.

Derivative instruments
Derivative contracts include currency forward contracts, TBA securities, swaptions, options and futures
contracts, currency swaps and interest rate swaps. Currency swaps and interest rate swaps are either plain vanilla
or structured. Currency forward contracts and plain vanilla currency and interest rate swaps are valued using the
standard discounted cash flow methods using observable market inputs such as yield curves, foreign exchange
rates, basis spreads and funding spreads. For structured currency and interest rate swaps, which primarily consist
of callable swaps linked to interest rates, foreign exchange rates, and equity indices, valuation models and inputs
similar to the ones applicable to the valuation of structured bonds are used. Where applicable, the models also
incorporate significant unobservable inputs such as correlations and long-dated interest rate volatilities.

Valuation adjustments on fair value option elected liabilities
The DVA on fair value option elected liabilities is measured by revaluing each liability to determine the changes
in fair value of that liability arising from changes in IBRD's funding spread applicable to the relevant reference
rate.

                                                                  150
The table below presents IBRD's estimates of fair value of its financial assets and liabilities along with their
respective carrying amounts:

Table J1: Fair value and carrying amount of financial assets and liabilities

In millions of U.S. dollars

                                                                                           June 30, 2025         June 30, 2024

                                                                                           Carrying Value Fair Value Carrying Value Fair Value

Assets                                                                                     $ 485      $ 485      $ 490       $ 490
Due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments-Trading (including Securities purchased under                                   102,688    102,688      82,807      82,807
                                                                                            280,043    278,883    260,236     257,415
   resale agreements) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net loans outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                666        666        456         456
Derivative assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             115        115          88          88
Miscellaneous assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities                                                                                $305,679   $305,679   $261,790    $261,790
Borrowings, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . .                482        489        --          --
Borrowings, at amortized cost . . . . . . . . . . . . . . . . . . . . . . . .
Securities sold/lent under repurchase agreements/securities                                      312        312        256         256
                                                                                              12,454     12,454     22,728      22,728
   lending agreements and payable for cash collateral
   received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative liabilities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As of June 30, 2025, IBRD's signed loan commitments were $77 billion ($67 billion--June 30, 2024) and had a
fair value of $(0.014) billion ($0.3 billion--June 30, 2024).

                             151
The following tables present IBRD's fair value hierarchy for assets and liabilities measured at fair value on a
recurring basis. The fair value of the investments included in the Other fund investments that are measured using
the NAV as a practical expedient are included in the table below but excluded from the fair value hierarchy.

Table J2: Fair value hierarchy of IBRD's assets and liabilities

In millions of U.S. dollars                                                                              Fair Value Measurements on a Recurring Basis
                                                                                                                             June 30, 2025
Assets:
      Investments-Trading                                                                                Level 1    Level 2 Level 3    Total
            Government, agency and corporate obligations . . . . . . . . . .
            Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $15,957    $ 28,194   $--     $ 44,151
            ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,750      49,533     --      52,283
            Other fund investments a . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  --        3,210     --       3,210
            Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             --          416     --       2,775
                                                                                                              255         --      --         255

Total Investments-Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    $18,962    $ 81,353   $--     $102,674
Securities purchased under resale agreements . . . . . . . . . . . . . . .                               $ 14       $--        $--     $ 14
Derivative assets
                                                                                                         $--        $ 4,926    $ 189   $ 5,115
      Currency swaps b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    --        7,392     167      7,559
      Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      2        --      --            2
      Other c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2 $ 12,318 $ 356 $ 12,676

Miscellaneous assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ --                     $ 115 $ -- $ 115

Liabilities:

Borrowings, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ --                      $300,845 $4,834 $305,679

Securities sold under repurchase agreements and securities lent

under securities lending agreements d . . . . . . . . . . . . . . . . . . . . $ --                                  $ 312 $ -- $ 312

Derivative liabilities

Currency swaps b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ --                           $ 7,097 $ 95 $ 7,192

Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    --         17,331 192 17,523

Other c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              --         --         --      --

Gross Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ -- $ 24,428 $ 287 $ 24,715

Accounts payable and miscellaneous liabilities . . . . . . . . . . . . . . $ -- $                                   5 $-- $                            5

a. Includes Investments held by LPF1 and GFPP of $416 million, which are carried at fair value and
      investments in PEBP holdings of $2,359 million, which are carried at NAV and excluded from the fair value
      hierarchy.

b. Includes forward contracts.
c. Includes swaptions, options, and futures contracts.
d. Excludes payable for cash collateral received.

                        152
Table J2.1:

In millions of U.S. dollars

                                                                                                         Fair Value Measurements on a Recurring Basis
                                                                                                                             June 30, 2024

                                                                                                         Level 1    Level 2 Level 3   Total

Assets:                                                                                                  $12,940    $ 19,413   $--    $ 32,353
      Investments-Trading                                                                                   3,517      42,474     --     45,991
            Government agency and corporate obligations . . . . . . . . . . .                                 --        1,880     --      1,880
            Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             --          --      --      2,155
            ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       349         --      --        349
            Other fund investments a . . . . . . . . . . . . . . . . . . . . . . . . . . . .
            Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Investments-Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    $16,806    $ 63,767   $--    $ 82,728
Securities purchased under resale agreements . . . . . . . . . . . . . . .                               $ 20       $ 59       $--    $ 79
Derivative assets
                                                                                                         $--        $ 3,935    $ 122  $ 4,057
      Currency swaps b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    --        7,836  $ 141      7,977
      Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      1        --                   1
      Other c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 --

Gross Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1 $ 11,771 $ 263 $ 12,035

Miscellaneous assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ --                     $ 88 $ -- $ 88

Liabilities:                                                                                                        $257,735 $4,055 $261,790

Borrowings, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ --                      $ 256 $ -- $ 256

Securities sold under repurchase agreements and securities lent                                                     $ 9,816 $ 91 $ 9,907
                                                                                                                       24,556 203 24,759
under securities lending agreements d . . . . . . . . . . . . . . . . . . . . $ --                                        -- $-- $ --

Derivative liabilities

Currency swaps b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ --

Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    --

Other c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              --

Gross Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ -- $ 34,372 $ 294 $ 34,666

Accounts payable and miscellaneous liabilities . . . . . . . . . . . . . . $ -- $                                   2 $-- $                            2

a. Investments at NAV related to PEBP holdings, not included in the fair value hierarchy.
b. Includes forward contracts.
c. Includes swaptions, options, and futures contracts.
d. Excludes payable for cash collateral received.

IBRD's Level 3 borrowings primarily relate to structured bonds. The fair value of these bonds is estimated using
discounted cash flow valuation models that incorporate model parameters, observable market inputs, and
unobservable inputs. The significant unobservable inputs used in the fair value measurement of structured bonds
and swaps are correlations and long-dated market interest rate volatilities. Generally, the movements in
correlations are considered to be independent of the movements in long-dated interest rate volatilities.

Correlation is the statistical measurement of the relationship between two variables. For contracts where the
holder benefits from the convergence of the underlying index prices (e.g., market interest rates and foreign
exchange rates), an increase in correlation would generally result in an increase in the fair value of the
instrument. The magnitude and direction of the fair value adjustment would depend on whether the holder is
short or long the option.

Interest rate volatility is the extent to which the level of interest rates change over time. For purchased options, an
increase in volatility will generally result in an increase in the fair value. In general, the volatility used to price

                             153
the option depends on the maturity of the underlying instrument and the option strike price. During the fiscal year
ended June 30, 2025 and the fiscal year ended June 30, 2024, the interest rate volatilities for certain currencies
were extrapolated for certain tenors and, thus, are considered an unobservable input.

IBRD entered into transactions which have an embedded option associated with an equity index. Valuation
inputs of such transactions include, among other valuation inputs, volatilities of the equity indices, that are the
extent to which the level of equity index changes over time. These index volatility levels are consistent with the
respective index construction methodologies and historical movements. Similar to the impact of the volatility of
the other asset classes described above, an increase in the equity index volatility will result in an increase in the
value of the purchase option and vice versa.

In certain instances, particularly for instruments with coupon or repayment terms linked to catastrophic events,
management relies on instrument valuations supplied by external pricing vendors.

The following table provides a summary of the valuation technique applied in determining fair values of these
Level 3 instruments and quantitative information regarding the significant unobservable inputs used. Level 3
instruments represent 2% of IBRD's borrowings.

Table J3: Level 3 Borrowings and derivatives valuation technique and quantitative information regarding
the significant unobservable inputs:

In millions of U.S. dollars

                             Fair Value Fair Value

           as of June 30, as of June 30,            Valuation  Unobservable  Range (average),  Range (average),
                                                    Technique       input     June 30, 2025     June 30, 2024
Portfolio                    2025     2024

                                                               Correlations -14% to 80% (10%) -11% to 84% (7%)

Borrowings . . . . . . . .                        Discounted Interest rate
                              $4,834  $4,055 Cash Flow volatilities 66% to 72% (70%) 65% to 77% (73%)

                                                               Equity index
                                                               volatilities 5% to 15% (10%) 5% to 15% (9%)
                                                               Correlations -14% to 80% (10%) -11% to 84% (7%)

Derivative assets/                                Discounted Interest rate
   (liabilities), net . . . $ 69      $ (31) Cash Flow volatilities 66% to 72% (70%) 65% to 77% (73%)

                                                               Equity index
                                                               volatilities 5% to 15% (10%) 5% to 15% (9%)

                                                    154
The tables below provide the details of transfers between Level 2 and Level 3 that are due to changes in
observable inputs.

Table J4: Borrowings and derivatives inter level transfers                                                       2025                                         2024
In millions of U.S. dollars
                                                                                                        Level 2        Level 3                       Level 2        Level 3
Borrowings
Transfer into (out of) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 91           $ (91)                        $ 90           $(90)
Transfer (out of) into . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (103)         $103                           (46)          $ 46

Derivative assets, net                                                                                  $ (12)         $ 12                          $ 44           $(44)
Transfer into (out of) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer (out of) into . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 10           $ (10)                        $ 96           $(96)
                                                                                                            (3)        $3                               (1)         $1
Derivative liabilities, net                                                                                  7         $ (7)                           95           $(95)
Transfer (into) out of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer out of (into) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (1)          $1                            $(63)          $ 63
                                                                                                        $ 21             (21)                        $7                (7)
Total Derivative Transfers, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                            20         $ (20)                         (56)          $ 56
                                                                                                        $ 27           $ (27)                        $ 39           $(39)

The following tables provide a summary of changes in the fair value of IBRD's Level 3 borrowings and
derivatives:

Table J5: Borrowings Level 3 changes

In millions of U.S. dollars

                                                                                                                                                     June 30, 2025 June 30, 2024

Beginning of the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             $4,055         $3,607
Issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     796          1,054
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (430)          (831)
Total realized/unrealized mark-to-market losses (gains) in:
                                                                                                                                                        335            352
   Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           66            (83)
   Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       12            (44)
Transfers (from) to Level 3, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

End of the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,834                 $4,055

                                      155
Table J6: Derivatives Level 3 changes

In millions of U.S. dollars

                                                                                                             2025                                     2024

                                                                                             Derivatives, Assets/(Liabilities)        Derivatives, Assets/(Liabilities)

                                                                                             Currency Interest                       Currency Interest
                                                                                              Swaps Rate Swaps Total                  Swaps Rate Swaps Total

Beginning of the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . .           $ 31    $ (62)                 $ (31) $ 13                $(134)   $(121)
Issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   --      --                                                  (78)     (78)
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            (53)                 --       --                    13       65
Total realized/unrealized mark-to- market gains (losses) in:                                    44
                                                                                                                                     (9) 52
   Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       27
   Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . .                     18                     96   123 162                    76       238
Transfers (from) to Level 3, net . . . . . . . . . . . . . . . . . . . . . . . .               (27)
                                                                                                                       (5)  13       (96)              --       (96)

                                                                                                                       --   (27) (100)                 61       (39)

End of the fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 93          $ (24) $ 69 $ 31 $ (62) $ (31)

Information on the unrealized gains or losses included in the Statements of Income and Statements of
Comprehensive Income relating to IBRD's Level 3 borrowings and derivatives that are still held at the reporting
dates, is presented in the following table:

Table J7: Unrealized gains or losses relating to IBRD's Level 3 borrowings and derivatives

In millions of U.S. dollars                                                                                                                            2025 2024 2023

Reported as:                                                                                                                                           $(302) 210 $ 56
   Borrowings                                                                                                                                             (66) 83 (53)
      Net (loss) income a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other Comprehensive income (loss) b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                $ 316 $(107) $(54)
   Derivatives                                                                                                                                             11 (91) 5
      Net income (loss ) a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Other Comprehensive (loss) income c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a. Amounts are included in Unrealized mark-to-market gains (losses) on non-trading portfolios, net on the
       Statements of Income.

b. Amounts are included in Currency translation adjustment on functional currency and Net Change in DVA
       on fair value option elected liabilities, in the Statements of Comprehensive Income.

c. Amounts are included in Currency translation adjustment on functional currency, in the Statements of
       Comprehensive Income.

Table J8: Borrowings fair value and contractual principal balance

In millions of U.S. dollars                                                                                                   Fair   Principal Amount Due       Difference
                                                                                                                             Value       Upon Maturity
June 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                           $(19,648)
June 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $305,679        $325,327             $(23,532)
                                                                                                                           $261,790        $285,322

                                       156
The following tables provide information on the changes in fair value due to the change in IBRD's own credit
risk for financial liabilities measured under the fair value option, included in the Statements of Other
Comprehensive Income:

Table J9: Changes in fair value due to IBRD's own credit risk

In millions of U.S. dollars

Unrealized mark-to-market gains (losses) due to DVA on fair value option elected liabilities                                2025 2024

DVA on Fair Value Option Elected Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,009 $321
Amounts reclassified to net income upon derecognition of a liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) 1

Net change in DVA on Fair Value Option Elected Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 991 $322

As of June 30, 2025, IBRD's Balance Sheets included a DVA of $1,664 million cumulative gains ($673 million
cumulative gain--June 30, 2024) in Accumulated other comprehensive income, associated with the changes in
IBRD's own credit for financial liabilities measured under the fair value option.

Table J10: Unrealized mark-to-market gains or losses on investments-trading, and non-trading portfolios,
net

In millions of U.S. dollars

                                                                                                 2025

                                                                                                 Unrealized gains (losses)

                                                                              Realized gains excluding realized Unrealized gains

                                                                              (losses)           amounts a                  (losses)

Investments-Trading, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(343)        $ 557                      $ 214

Non trading portfolios, net

Loan-related derivatives--Note F . . . . . . . . . . . . . . . . . . . . . .     4               (1,376)                    (1,372)
                                                                                                  1,839                      1,839
Other assets/liabilities management derivatives, net . . . . . . . . --                            (234)                      (234) b

Borrowings, including derivatives--Notes E and F . . . . . . . . --                                  23                         23

Client operations and other derivatives, net . . . . . . . . . . . . . . . --

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4  $ 252                      $ 256

Table J10.1:

In millions of U.S. dollars

                                                                                                 2024

                                                                                                 Unrealized gains (losses)

                                                                              Realized gains excluding realized Unrealized gains

                                                                              (losses)           amounts a                  (losses)

Investments-Trading, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $113          $ (22)                     $ 91

Non trading portfolios, net

Loan-related derivatives--Note F . . . . . . . . . . . . . . . . . . . . . . --                  (458)                      (458)
                                                                                                  708                        708
Other assets/liabilities management derivatives, net . . . . . . . . --
                                                                                                     7                          9b
Borrowings, including derivatives --Notes E and F . . . . . . . .              2                   30                         30

Client operations and other derivatives, net . . . . . . . . . . . . . . . --

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2  $ 287                      $ 289

                             157
Table J10.2:

In millions of U.S. dollars

                                                                                                  2023

                                                                                                  Unrealized gains (losses)

                                                                              Realized gains excluding realized Unrealized gains

                                                                              (losses)            amounts a                  (losses)

Investments-Trading, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (42)         $ 126                      $ 84

Non trading portfolios, net

Loan-related derivatives--Note F . . . . . . . . . . . . . . . . . . . . . .  4                    1,673                      1,677
                                                                                                  (1,642)                    (1,642)
Other assets/liabilities management derivatives, net . . . . . . . . --
                                                                                                    (198)                      (190) b
Borrowings, including derivatives--Notes E and F . . . . . . . .              8                      --                         --

Client operations and other derivatives, net . . . . . . . . . . . . . . . --

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12  $ (167)                    (155)

a. Adjusted to exclude amounts reclassified to realized gains (losses).
b. Includes $7,714 million of unrealized mark-to-market gains related to derivatives associated with borrowings for fiscal

      year ended June 30, 2025 (unrealized mark-to-market gains of $4,220 million--fiscal year ended June 30, 2024 and
      unrealized mark-to-market losses of $5,851 million--fiscal year ended June 30, 2023).

NOTE K--PENSION AND OTHER POSTRETIREMENT BENEFITS

IBRD, IFC and MIGA participate in the defined benefit Staff Retirement Plan (SRP), a Retired Staff Benefits
Plan (RSBP) and PEBP (collectively "the Pension Plans") that cover substantially all of their staff members.

The SRP provides pension benefits and includes a cash balance plan. The RSBP provides certain health and life
insurance benefits to eligible retirees. The PEBP provides certain pension benefits administered outside the SRP.

IBRD uses a June 30th measurement date for its pension and other postretirement benefit plans.

All costs, assets and liabilities associated with these plans are allocated between IBRD, IFC, and MIGA based
upon their employees' respective participation in the Pension Plans. Costs allocated to IBRD are then shared
between IBRD and IDA based on an agreed cost-sharing methodology. IDA, IFC and MIGA reimburse IBRD for
their proportionate share of any contributions made to these plans by IBRD. Contributions to the Pension Plans
are calculated as a percentage of salary.

                             158
The following table summarizes the benefit costs associated with the SRP, RSBP, and PEBP for IBRD and IDA:

Table K1: Pension Plan benefit costs

In millions of U.S. dollars

                                                   2025     SRP        2023     2025  RSBP           2023            PEBP
                                                            2024                      2024                 2025 2024 2023

Service cost . . . . . . . . . . . . . . . . . .   $ 424 $ 401 $ 511 $ 111 $ 112 $ 139 $ 77                      $ 82   $ 93
Interest cost . . . . . . . . . . . . . . . . . .    1,152 1,011 944 180 162 162 110                                99     92
Expected return on plan assets . . . .              (1,492) (1,377) (1,386) (266) (243) (238) --
Amortization of unrecognized prior                                                                                --     --
                                                         3        3          3  2     2 14 3
   service costs a . . . . . . . . . . . . . . .                                                                     3      3
Amortization of unrecognized net                   --       --         -- (64) (67) (28) --
                                                                                                                  --     --
   actuarial (gains) losses a . . . . . . .

Net periodic pension cost . . . . . . . . $ 87 $ 38 $ 72 $ (37) $ (34) $ 49 $190 $184 $188

of which:                                          41 $     18 $       34 $ (18) $ (16) $ 23 $ 89 $ 88 $ 89
      IBRD's share . . . . . . . . . . . . . $     46       20         38 (19) (18) 26 101 96 99
      IDA's share . . . . . . . . . . . . . .

                                                                                                     2025        2024   2023

Net periodic pension cost (all three plans combined)
      IBRD's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 112 $ 90 $ 146
      IDA's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 98 163

a. Included in Amounts reclassified into net income in Note I--Accumulated Other Comprehensive Income.

IDA's share of benefit costs is included as a payable to/receivable from IDA in Other liabilities  Accounts
payable and miscellaneous liabilities on the Balance Sheets (see Note H--Transactions with Affiliated
Organizations).

The components of net periodic pension cost, other than the service cost component, are included in the
Non-interest expenses  Other line item in the Statements of Income. The service cost component is included in
the line item Non-interest expenses  Administrative expenses.

The following table provides details of the Pension service cost:

Table K2: Pension service cost

In millions of U.S. dollars

                                                                                                           2025

                                                                                      SRP            RSBP PEBP Total

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 424 $ 111 $ 77 $ 612

Of which:

IBRD's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 199 $ 52 $ 36 $ 287

IDA's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225        59 41 325

                                                                  159
In millions of U.S. dollars                                                                                                      SRP        2024    Total
                                                                                                                                      RSBP PEBP
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $401                $595
      Of which:                                                                                                                       $112 $82
            IBRD's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $191                $284
            IDA's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        210  $ 53 $40       311
                                                                                                                                         59 42

In millions of U.S. dollars                                                                                                      SRP        2023    Total
                                                                                                                                      RSBP PEBP
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $511                $743
      Of which:                                                                                                                       $139 $93
            IBRD's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $241                $351
            IDA's share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        270  $ 66 $44       392
                                                                                                                                         73 49

The following table summarizes the Projected Benefit Obligations (PBO), fair value of plan assets, and funded
status associated with the SRP, RSBP, and PEBP for IBRD and IDA. The SRP and RSBP assets are held in
separate trusts and the PEBP assets are included in IBRD's investment portfolio. The assets of the PEBP are
mostly invested in fixed income, equity instruments and other fund investments.

Table K3: PBO, funded status and accumulated benefit obligations
In millions of U.S. dollars

                                                                                     SRP                 RSBP                                 PEBP

                                                                               2025       2024     2025                         2024    2025        2024

Projected Benefit Obligations                                                  $22,166 $21,208 $3,408 $3,341 $ 2,097 $ 2,057
      Beginning of year . . . . . . . . . . . . . . . . . . . . . . . .
      Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        424   401 111 112                                   77          82
      Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Participant contributions . . . . . . . . . . . . . . . . . . .          1,152 1,011 180 162 110                                              99
      Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . .             193   181      34                           33            5           4

                                                                               (1,073) (961) (126) (117) (58) (57)

                                                                               (1,307) 326 (882) (123) (161) (88)

End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,555 22,166 2,725 3,408 2,070 2,097

Fair value of plan assets                                                      25,689     24,565   4,540                        4,281
      Beginning of year . . . . . . . . . . . . . . . . . . . . . . . .           193        181      34                           33
      Participant contributions . . . . . . . . . . . . . . . . . . .                                438                          303
      Actual return on assets . . . . . . . . . . . . . . . . . . . .           2,454      1,749      35                           40
      Employer contributions . . . . . . . . . . . . . . . . . . .                137        155
      Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 (961)   (126)                        (117)
                                                                               (1,073)

      End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,400 25,689 4,921 4,540
Funded Status-Over (Under) a . . . . . . . . . . . . . . . . . $ 5,845 $ 3,523 $2,196 $1,132 $(2,070) $(2,097)

Accumulated Benefit Obligations . . . . . . . . . . . . . . $20,506 $20,968 $2,725 $3,408 $ 1,925 $ 1,931

a. Over-Funded status is included in Other Assets  Assets under retirement benefits plans on the Balance
      Sheets and Under - Funded status Other liabilities  Liabilities under retirement benefits plans on the
      Balance Sheets.

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As of June 30, 2025, the SRP and RSBP were overfunded by $5,845 million and $2,196 million, respectively.
The PEBP, after reflecting IBRD and IDA's share of assets which totals $2,359 million, within IBRD's
investment portfolio, was overfunded by $289 million.

During the fiscal years ended June 30, 2025 and June 30, 2024, there were no amendments made to the
retirement benefit plans.

The following tables present the amounts included in Accumulated Other Comprehensive Income/Loss relating
to Pension and Other Postretirement Benefits:

Table K4: Amounts included in Accumulated Other Comprehensive Income as of June 30, 2025

In millions of U.S. dollars

                                                                                                                SRP     RSBP PEBP Total

Net actuarial (gains) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(4,491) $(2,424) $(246) $(7,161)

Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --       7--              7

Net amount recognized in Accumulated Other Comprehensive
   Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(4,491) $(2,417) $(246) $(7,154)

Table K4.1: Amounts included in Accumulated Other Comprehensive Income as of June 30, 2024

In millions of U.S. dollars

                                                                                                                SRP     RSBP PEBP Total

Net actuarial (gains) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(2,222) $(1,434) $(85) $(3,741)

Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       3  93   15

Net amount recognized in Accumulated Other Comprehensive
   Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(2,219) $(1,425) $(82) $(3,726)

Assumptions

The actuarial assumptions used are based on financial market interest rates, inflation expectations, past
experience, and Management's best estimate of future benefit changes and economic conditions. Changes in
these assumptions will impact future benefit costs and obligations.

The expected long-term rate of return for the SRP assets is a weighted average of the expected long-term (10
years or more) returns for the various asset classes, weighted by the portfolio allocation. Asset class returns are
developed using a forward-looking building block approach. Equity returns are generally developed as the sum
of expected inflation, expected real earnings growth and expected long-term dividend yield. Bond returns are
generally developed as the sum of expected inflation, real bond yield, duration-adjusted change in yields and risk
premium/spread (as appropriate). Other asset class returns are derived from their relationship to equity and bond
markets. The expected long-term rate of return for the RSBP is computed using procedures similar to those used
for the SRP. The discount rate used in determining the benefit obligation is selected by reference to the year-end
yield of AA corporate bonds.

Actuarial gains and losses occur when actual results are different from expected results. Amortization of these
unrecognized gains and losses will be included in income if, at the beginning of the fiscal year, they exceed 10%
of the greater of the projected benefit obligation or the market-related value of plan assets. If required, the
unrecognized gains and losses are amortized over the expected average remaining service lives of the employee
group.

                                                                  161
The following tables present the weighted-average assumptions used in determining the projected benefit
obligations and the net periodic pension costs:

Table K5: Weighted average assumptions used to determine projected benefit obligations
In percent, except years

                                                                                                SRP      RSBP       PEBP

                                                                                                2025 2024 2025 2024 2025 2024

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50 5.30 5.60 5.40 5.50 5.30

Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.80 5.20             4.80 5.20

Health care growth rates  at end of fiscal year . . . . . . . . . . . . . . . . . . .                   6.00 5.40

Ultimate health care growth rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           4.00 4.40

Year in which ultimate rate is reached . . . . . . . . . . . . . . . . . . . . . . . . . .               2033 2031

Interest crediting rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00 5.40 n.a n.a 5.00 5.40

Table K6: Weighted average assumptions used to determine net periodic pension cost

In percent, except years

                                                              SRP                               RSBP                PEBP

                                                              2025 2024 2023 2025 2024 2023 2025 2024 2023

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.30 4.90 4.40 5.40 4.90 4.50 5.30 4.90 4.50

Expected return on plan assets . . . . . . . . . . . . . . . 5.90 5.70 5.90 5.90 5.70 5.90

Rate of compensation increase . . . . . . . . . . . . . . . 5.20 5.10 5.30                                      5.20 5.10 5.30

Health care growth rates  at end of fiscal year . .                                            5.40 5.40 5.80

Ultimate health care growth rate . . . . . . . . . . . . . .                                    4.40 4.20 4.40

Year in which ultimate rate is reached . . . . . . . . .                                        2031 2031 2031

Interest crediting rate . . . . . . . . . . . . . . . . . . . . . . . 5.40 5.20 5.40 n.a n.a n.a 5.40 5.20 5.40

The medical cost trend rate can significantly affect the reported postretirement benefit income or costs and
benefit obligations for the RSBP. For the fiscal year ended June 30, 2025, the net actuarial gains were primarily
attributable to the decrease in the expected inflation assumption and an increase in the nominal discount rate,
offset by changes in demographic experience. In addition, there was an increase in the value of the plan assets
that exceeded the expected asset returns. For the fiscal year ended June 30, 2024, the actuarial gains were
primarily due to an increase in the value of the plan assets in excess of expected asset returns which was partially
offset by the actuarial losses attributable to the increase in inflation assumptions and demographic experience.

Investment Strategy

The investment policies establish the framework for investment of the plan assets based on long-term investment
objectives and the trade-offs inherent in seeking adequate investment returns within acceptable risk parameters.
A key component of the investment policy is to establish a Strategic Asset Allocation (SAA) representing the
policy portfolio (i.e., policy mix of assets) around which the SRP and RSBP (the Plans) are invested. The SAA is
derived using a mix of quantitative analysis that incorporates expected returns and volatilities by asset class as
well as correlations across the asset classes, and qualitative considerations such as the liquidity needs of the
Plans. The SAA for the Plans is reviewed in detail and reset about every three to five years, with more frequent
reviews and changes if and as needed based on market conditions.

The key long-term objective is to generate asset performance that is reasonable in relation to the growth rate of
the underlying liabilities and the assumed sponsor contribution rates, without taking undue risks. Given the
relatively long investment horizons of the SRP and RSBP, and the relatively modest liquidity needs over the

                                                                  162
short-term to pay benefits and meet other cash requirements, the focus of the investment strategy is on generating
sustainable long-term investment returns through a globally diversified set of strategies including fixed income,
public and private equity and real assets. The last SAA review effective July 1, 2024 resulted in an increased
allocation to Credit Strategies from 6% to 7% and Real Assets from 13% to 15% while reducing the Public
Equities allocation from 31% to 29% and Market Neutral Hedge Funds from 10% to 9%.

The following table presents the policy asset allocation and the actual asset allocations by asset category for the
SRP and RSBP:

Table K7: Policy and actual asset allocations

                                                                         SRP                                      RSBP

                                                               Policy allocation Actual Allocation (%)  Policy allocation Actual Allocation (%)

                                                               2025 (%)  2025     2024                  2025 (%)  2025      2024

Asset class

Fixed income and Cash . . . . . . . . . . . . . .              20             19  19                    20              20  19

Credit Strategies . . . . . . . . . . . . . . . . . . .        7              8   8                     7               7   8

Public equity . . . . . . . . . . . . . . . . . . . . . .      29             25  22                    29              25  23

Private equity . . . . . . . . . . . . . . . . . . . . . .     20             24  27                    20              23  26

Market neutral hedge funds . . . . . . . . . . .               9              9   9                     9               9   8

Real assets a . . . . . . . . . . . . . . . . . . . . . . .    15             14  14                    15              15  15

Other b . . . . . . . . . . . . . . . . . . . . . . . . . . .  --             1   1                     --              1   1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .  100       100 100                        100       100 100

a. Includes public and private real estate, infrastructure and timber.
b. Includes authorized investments that are outside the policy allocations primarily in hedge funds.

Significant Concentrations of Risk in Plan Assets

The assets of the SRP and RSBP are diversified across a variety of asset classes. Investments in these asset
classes are further diversified across funds, managers, strategies, geographies and sectors, to limit the impact of
any individual investment. In spite of such level of diversification, equity market risk remains the primary source
of the overall return volatility of the Plans. As of June 30, 2025, the largest exposure to a single counterparty was
12% and 13% of the plan assets in SRP and RSBP, respectively (10% and 12%, respectively--June 30, 2024).

Risk Management Practices

Managing investment risk is an integral part of managing the assets of the Plans. Asset diversification is central
to the overall investment strategy and risk management approach for the Plans. Absolute risk indicators such as
the overall return volatility and drawdown of the Plans are the primary measures used to define the risk tolerance
level and establish the overall level of investment risk. In addition, the level of active risk (defined as the
annualized standard deviation of portfolio returns relative to those of the policy portfolio) is closely monitored
and managed on an ongoing basis.

Market risk is regularly monitored at the absolute level, as well as at the relative levels with respect to the
investment policy, manager benchmarks, and liabilities of the Plans. Stress tests are performed periodically using
relevant market scenarios to assess the impact of extreme market events.

Monitoring of performance (at both manager and asset class levels) against benchmarks, and compliance with
investment guidelines, are carried out on a regular basis which provides helpful information for assessing the
impact on the portfolios caused by market risk factors. Risk management for different asset classes is tailored to
their specific characteristics and is an integral part of the external managers' due diligence and monitoring
processes.

                                                                  163
Credit risk is monitored on a regular basis and assessed for possible credit event impacts. The liquidity position
of the Plans is analyzed at regular intervals and periodically tested using various stress scenarios to ensure that
the Plans have sufficient liquidity to meet all cash flow requirements. In addition, the long- term cash flow needs
of the Plans are considered during the SAA exercise and are one of the main drivers in determining maximum
allocation to the illiquid investment vehicles.

Fair Value Measurements and Disclosures

All plan assets are measured at fair value on a recurring basis. The following tables present the fair value
hierarchy of major categories of plan assets:

Table K8: Plan assets fair value hierarchy

In millions of U.S. dollars

                                                                               SRP  June 30, 2025        RSBP       Total
                                                         Level 1 Level 2 Level 3    Total Level 1  Level 2 Level 3

Debt securities

Short-term investments . . . . . . . . . . . . $ 9 $ 8 $--                          $ 17 $ 4 $ 4 $--                $8

Securities purchased under resale                                                                                         35
                                                                                                                        760
agreements . . . . . . . . . . . . . . . . . . . 150 -- --                            150   35 -- --                      73
                                                                                    3,895  666 94 --                      37
Government and agency securities . . . 3,434 461 --                                        -- 73 --                     106
                                                                                      385  -- 37 --
Corporate and convertible bonds . . . . --                      385 --                199  -- 106 --
                                                                                      618
ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . --    199 --

MBS . . . . . . . . . . . . . . . . . . . . . . . . . . --      618 --

Total debt securities . . . . . . . . . . . . . . . . . . 3,593 1,671 -- 5,264 705 314 -- 1,019

Equity securities

Stocks . . . . . . . . . . . . . . . . . . . . . . . . . 2,607 -- -- 2,607 485 -- --                                485

Real estate investment trusts

(REITs) . . . . . . . . . . . . . . . . . . . . . . 184 -- --                       184    27 -- --                 27

Total equity securities . . . . . . . . . . . . . . . . . 2,791 -- -- 2,791 512 -- --                               512

Other funds at NAV a                                            ----                4,365  ---- --                    746
      Commingled funds . . . . . . . . . . . . . . . --         ----                6,459  ---- --                  1,126
      Private equity funds . . . . . . . . . . . . . . --       ----                2,072  ---- --
      Private credit funds . . . . . . . . . . . . . . . --                                                           352
      Real asset funds (including                               ----                3,680  ---- --
         infrastructure and timber) . . . . . . . . --          ----                2,590  ---- --                    703
      Hedge funds . . . . . . . . . . . . . . . . . . . . --                                                          444

Total other funds . . . . . . . . . . . . . . . . . . . . . --  -- -- 19,166 -- -- -- 3,371

Derivative assets/liabilities . . . . . . . . . . . . .  8           (1) --         7      3-- --                          3

Other assets/liabilities, net b . . . . . . . . . . . . --      ----                172 -- -- --                    16

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,392 $ 1,670 $-- $ 27,400 $ 1,220 $314 $-- $ 4,921

a. Investments measured at fair value using NAV as a practical expedient have not been included under the
      fair value hierarchy.

b. Includes receivables and payables carried at amounts that approximate fair value.

                                                                164
K8.1

In millions of U.S. dollars

                                                                          June 30, 2024

                                               Level 1            SRP     Total  Level 1         RSBP      Total
                                                         Level 2 Level 3                  Level 2 Level 3

Debt securities

Short-term investments . . . . . . . $ 11 $ 37 $--                        $ 48 $ 5 $ 8 $--                 $ 13

Securities purchased under                                                                                       37

      resale agreements . . . . . . . . . 218 -- --                       218            37 -- --              588

Government and agency                                                                                            71
                                                                                                                 35
      securities . . . . . . . . . . . . . . . . 2,515 273 --             2,788 540 48 --                        78

Corporate and convertible

      bonds . . . . . . . . . . . . . . . . . . . --     366 --           366 --          71 --
                                                                          165 --          35 --
ABS . . . . . . . . . . . . . . . . . . . . . . --       165 --           410 --          78 --

MBS . . . . . . . . . . . . . . . . . . . . . . --       410 --

Total debt securities . . . . . . . . . . . . . 2,744 1,251 --            3,995 582 240 --                 822

Equity securities

Stocks . . . . . . . . . . . . . . . . . . . . 2,680 -- --                2,680 423 -- --                  423

Real estate investment trusts

      (REITs) . . . . . . . . . . . . . . . . . 176 -- --                 176            26 -- --          26

Total equity securities . . . . . . . . . . . . 2,856 -- --               2,856 449 -- --                  449

Other funds at NAV a                                     ----             3,729          ---- --             651
      Commingled funds . . . . . . . . . . --            ----             6,935          ---- --           1,160
      Private equity funds . . . . . . . . . . --        ----             2,118          ---- --
      Private credit funds . . . . . . . . . . --                                                            354
      Real asset funds (including                        ----             3,423          ---- --
         infrastructure and timber) . . . --             ----             2,539          ---- --             653
      Hedge funds . . . . . . . . . . . . . . . . --                                                         431

Total other funds . . . . . . . . . . . . . . . . --     -- -- 18,744 -- -- -- 3,249

Derivative assets/liabilities . . . . . . . .         9  2--              11             1-- --                   1

Other assets/liabilities, net b . . . . . . . --         ----             83 -- -- --                      19

Total assets . . . . . . . . . . . . . . . . . . . . $ 5,609 $ 1,253 $-- $ 25,689 $ 1,032 $240 $-- $ 4,540

a. Investments measured at fair value using NAV as a practical expedient have not been included under the
      fair value hierarchy.

b. Includes receivables and payables carried at amounts that approximate fair value.

Valuation Methods and Assumptions

The following are general descriptions of asset categories, as well as the valuation methodologies and inputs used
to determine the fair value of each major category of plan assets. Investment amounts in the asset categories
shown in the table above may be different from the asset category allocation shown in the Investment Strategy
section of the note. Asset classes in the table above are grouped by the characteristics of the investments held.
The asset class break-down in the Investment Strategy section is based on Management's view of the economic
exposures after considering the impact of derivatives and certain trading strategies.

                                                         165
Debt securities
Debt securities include discount notes, securities purchased under resale agreements, U.S. treasuries and
agencies, debt obligations of foreign governments, sub-sovereigns and domestic and foreign corporations. Debt
securities also include investments in ABS such as collateralized mortgage obligations and MBS. These
securities are valued by independent pricing vendors either at quoted prices in active markets or valuation
techniques incorporating observable market inputs such as dealer quotes, yield curves, interest rates, volatilities,
foreign exchange rates, credit curves and other market data for the same or similar securities., Some debt
securities require significant unobservable inputs, involving judgment in their valuation. Management believes its
estimates of fair value are reasonable based on sourcing securities prices from multiple independent third-party
vendors and periodic reviews over valuation. Money market instruments and securities purchased under resale
agreements are reported at discounted face value which approximates fair value.

Equity securities
Equity securities (including REITs) represent investments in entities in various industries and countries.
Investments in public equity listed on securities exchanges are valued at the quoted closing price on the last
business day of the reporting period.

Commingled funds
Commingled funds are typically collective investment vehicles, such as trusts that are reported at NAV as
provided by the investment manager or sponsor of the fund based on the valuation of underlying investments.

Private equity funds
Private equity funds include investments primarily in buyout, venture, growth capital, and secondary funds
across North America, Europe and Asia in a variety of sectors. Many of these funds are in the investment phase
of their life-cycle. Private Equity investments do not have a readily determinable fair market value and are
reported at NAV provided by the fund managers, taking into consideration the latest audited financial statements
of the funds.

Private credit funds
Private credit funds include investments primarily in several direct lending funds that provide private financing
to medium-sized companies, and funds focused on opportunistic credit, specialty financing and asset-based
lending. The funds with these strategies offer attractive yields with downside protection compared to public
credit markets. Many of these funds are in the investment phase of their life cycle. Private credit investments do
not have a readily determinable fair value and are reported at NAV provided by the fund managers, taking into
consideration the latest audited financial statements of the funds.

Real asset funds (including real estate, infrastructure and timber)
Real asset funds include investments in core real estate, non-core real estate investments (such as debt, value add,
and opportunistic equity investments) and infrastructure. Real asset investments do not have a readily
determinable fair market value and are reported at NAV provided by the fund managers, taking into
consideration the latest audited financial statements of the funds.

Hedge funds
Hedge funds consist of investments in equity fundamental, equity quantitative, fixed income arbitrage, multi
strategy, macro discretionary, macro quantitative, volatility arbitrage, and merger arbitrage strategies. These

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investments do not have a readily determinable fair market value and are reported at NAV provided by external
managers or fund administrators (based on the valuations of underlying investments) monthly, taking into
consideration the latest audited financial statements of the funds.

Investments in hedge funds and commingled funds can typically be redeemed at NAV within the near term while
investments in private equity and most real estate are inherently long term and illiquid in nature with a quarter
lag in reporting by the fund managers. Since the reporting of those asset classes is done with a lag, management
estimates are based on the latest available information considering underlying market fundamentals and
significant events through the Balance Sheet date.

Investment in derivatives

Investment in derivatives such as equity or bond futures, swaps, options and currency forwards are used to
achieve a variety of objectives that include hedging interest rates and currency risks, gaining desired market
exposure of a security, an index or currency exposure and rebalancing the portfolio. Over-the- counter derivatives
are reported using valuations based on discounted cash flow methods incorporating observable market inputs.

Estimated Future Benefit Payments

The following table shows the benefit payments expected to be paid in each of the next five years and subsequent
five years. The expected benefit payments are based on the same assumptions used to measure the benefit
obligation:

Table K9: Expected benefit payments

In millions of U.S. dollars

                                                                                                                                SRP RSBP PEBP

July 1, 2025 - June 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $1,166  $ 92   $ 87
July 1, 2026 - June 30, 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1,203     99     92
July 1, 2027 - June 30, 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1,246   106      98
July 1, 2028 - June 30, 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1,289   113    105
July 1, 2029 - June 30, 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1,335   120    112
July 1, 2030 - June 30, 2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   7,345   713    662

Expected Contributions

IBRD's contribution to the SRP and RSBP varies from year to year, as determined by the Pension Finance
Committee (PFC), which bases its judgment on the results of annual actuarial valuations of the assets and
liabilities of the SRP and RSBP. The best estimate of the amount of contributions expected to be paid to the SRP
and RSBP by IBRD and IDA during the fiscal year beginning July 1, 2025 is $140 million and $26 million,
respectively.

NOTE L--TRUST FUNDS ADMINISTRATION AND OTHER SERVICES

Trust Funds

IBRD, alone or jointly with one or more of its affiliated organizations, administers on behalf of donors, including
members, their agencies and other entities, funds restricted for specific uses in accordance with administration
agreements with donors. Specified uses could include co-financing of IBRD lending projects, debt reduction
operations, technical assistance including feasibility studies and project preparation, global and regional
programs, and research and training programs. These funds are held in trust with IBRD and/or IDA, and are held
in a separate investment portfolio which is not commingled with IBRD and/or IDA funds.

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Trust fund execution may be carried out in one of two ways: recipient-executed or Bank-executed activities.

Recipient-executed activities for trust funds involve activities carried out by a recipient third-party executing
agency. IBRD enters into agreements with and disburses funds to those recipients, who then exercise spending
authority to meet the objectives and comply with terms stipulated in the agreements.

Bank-executed activities for trust funds involve IBRD execution of activities as described in relevant
administration agreements with donors, which define the terms and conditions for use of the funds. Spending
authority is exercised by IBRD, under the terms of the administration agreements. The executing agency services
provided by IBRD vary and include for example, activity preparation, analytical and advisory activities and
project-related activities, including procurement of goods and services.

The following table summarizes the expenses pertaining to Bank-executed activities for trust funds:

Table L1: Expenses for Bank-executed activities for trust funds
In millions of U.S. dollars

                                                                                                                                               2025 2024 2023

Expenses for Bank-executed activities for trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $604 $612 $570

These amounts are included in Administrative expenses and the corresponding revenue is included in Revenue
from externally funded activities in the Statements of Income. Administrative expenses primarily relate to staff
costs, travel and consultant fees.

The following table summarizes all undisbursed contributions made by third party donors to Bank- executed
activities for trust funds, recognized on the Balance Sheets:

Table L2: Undisbursed contributions by third party donors to Bank-executed activities for trust funds

In millions of U.S. dollars

                             2025 2024

Bank-executed activities for trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $575 $637

These amounts are included in Other assets--Miscellaneous and the corresponding liabilities are included in
Other liabilities  Accounts payable and miscellaneous liabilities on the Balance Sheets.

Revenues
IBRD's revenues for the administration of trust fund operations were as follows:

Table L3: Trust fund administration revenues
In millions of U.S. dollars

                                                                                                                                                  2025 2024 2023

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $91 $99 $62

These amounts are included in Revenue from externally funded activities in the Statements of Income.

Revenue collected from donor contributions for trust fund administration fees, but not yet earned by IBRD
totaling $87 million as of June 30, 2025 ($101 million--June 30, 2024) is included in Other
assets--Miscellaneous and in Other liabilities  Accounts payable and miscellaneous liabilities, respectively on
the Balance Sheets.

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Investment Management Services
IBRD offers treasury and investment management services to affiliated and non-affiliated organizations.

In addition, IBRD offers asset management and technical advisory services to central banks of member countries,
under the Reserves Advisory and Management Program, for capacity building and other development purposes,
and receives a fee for these services.

During the fiscal year ended June 30, 2025, IBRD's fee revenue from investment management activities totaled
$18 million ($17 million June 30, 2024 and $16 million  June 30, 2023) and is included in Revenue from
externally funded activities in the Statements of Income.

NOTE M--SEGMENT REPORTING
IBRD has determined that it has a single reportable operating segment. The President is the Chief Operating
Decision Maker (CODM), who regularly reviews operational performance and financial measures of IBRD to
assess performance and allocate resources.

The Administrative budget for IBRD and IDA is approved and managed as a single resource. The CODM
receives expense information on the combined basis for IBRD and IDA. As a result, no significant segment
expense amounts are presented separately for IBRD to the CODM. The measure of segment profit or loss is at
the entity level and is reported on the Statements of Income as Net (loss) income. The measure of segment assets
is reported on the Balance Sheets as Total assets.

The following table presents IBRD's revenues by products/services:

Table M1: Revenues by products/services

In millions of U.S. dollars

                                                                                                                          Fiscal Year Ended June 30,

Revenue                                                                                                                   2025  2024  2023

Loan Revenue a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,431 $14,712 $10,279

Revenue from externally funded activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   947   960   878

Guarantee fees b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  41    42                    37

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,419 $15,714 $11,194

a. For the fiscal year ended June 30, 2025 includes commitment charges of $152 million ($149 million June
      30, 2024 and $124 million  June 30, 2023) and excludes interest from loan related derivatives of
      $1,022 million ($1,268 million June 30, 2024 and $367 million  June 30, 2023)

b. Included in Non-interest revenue-Other, net on the Statements of Income and excludes recoverable asset
      related to guarantees received and other miscellaneous income of $129 million for the fiscal year ended
      June 30, 2025 (Nil June 30, 2024 and $6 million  June 30, 2023)

NOTE N--CONTINGENCIES

From time to time, IBRD may be named as a defendant or co-defendant in legal actions on different grounds in
various jurisdictions. The outcome of any existing legal action, in which IBRD has been named as a defendant or
co-defendant, as of and for the fiscal year ended June 30, 2025, is not expected to have a material adverse effect
on IBRD's financial position, results of operations or cash flows.

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                                                      Information Statement
                                            International Bank for Reconstruction

                                                         and Development

      No person is authorized to give any information or to make any representation not contained in this
Information Statement, any supplemental information statement or any prospectus; and any information or
representation not contained herein must not be relied upon as having been authorized by IBRD or by any
dealer, underwriter or agent of IBRD. Neither this Information Statement nor any supplemental information
statement or prospectus constitutes an offer to sell or solicitation of an offer to buy securities in any jurisdiction
to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.

      The Information Statement contains forward looking statements which may be identified by such terms as
"anticipates", "believes", "expects", "intends" or words of similar meaning. Such statements involve a number
of assumptions and estimates that are based on current expectations, which are subject to risks and uncertainties
beyond IBRD's control. Consequently, actual future results could differ materially from those currently
anticipated.

                                                    TABLE OF CONTENTS

                                                                                                                                                                      Page

Availability of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Financial Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Lending Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Other Development Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Investment Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Borrowing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Capital Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Pension and other Post-Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Critical Accounting Policies and the Use of Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Governance and Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Reconciliations of Components of Allocable Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Affiliated Organizations--IFC, IDA and MIGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Administration of IBRD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
The Articles of Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Legal Status, Privileges and Immunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Fiscal Year, Announcements, and Allocation of Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Fees to External Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Index to Financial Statements and Internal Control Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
