ProCredit achieves strong 9M result and a 13.6% return on equity; all group banks in South Eastern and Eastern Europe with enhanced operational and financial performance

  • Result of EUR 94.0 million in 9M 2023 corresponds to a return on equity of 13.6%, and is thus in the area of the group’s medium-term guidance
  • High diversification of positive development, with all ten group banks in South Eastern Europe and Eastern Europe contributing higher results
  • Net interest margin of 3.6%, around 50 basis points higher than in 9M 2022
  • Good level of cost efficiency, as cost-income ratio improves to 58.7%
  • Cost of risk at 20 basis points, reflecting stable loan portfolio quality and conservative risk profile
  • Particularly good deposit growth of 10.3%; loans increased by 1.9%, with positive growth dynamics in Q2 and Q3
  • Strong 9M result contributed to the raised guidance for the 2023 financial year, as announced on 26 October 2023

The ProCredit group, which is mainly active in South Eastern and Eastern Europe, reported a strong financial result of EUR 94.0 million for the first nine months of 2023. Return on equity significantly improved to a level of 13.6%, thereby underlining the group’s medium-term guidance. The strong result was mainly driven by continued positive net interest margin dynamics as well as an improved cost-income ratio of 58.7%. Stable credit risk indicators led to moderate cost of risk of 20 basis points, which also includes additional loss allowances booked in the third quarter for the group’s operations in Ukraine. As a result of the strong operational and financial development across the group, the Management Board resolved on 26 October 2023 to again raise the guidance for the financial year 2023.
The loan portfolio increased by EUR 119 million or 1.9% in the first nine months of the year (9M 2022: 6.2%). In the second and third quarter, growth of EUR 165 million or 2.7% was achieved. Since year-end, deposits have increased by EUR 649 million or 10.3% (9M 2022: 8.0%), attributable in particular to private clients and demonstrating the strong progress of the group’s entirely digital private client offering and ‘ProCredit Direct’ strategy. Compared to the previous year’s period, the ratio of deposits to the loan portfolio increased by 16.3 percentage points to a good level of 111.4% (9M 2022: 95.1%). The CET1 ratio stood at 14.9% at the end of the third quarter; the increase during the year is above all due to the attribution of interim profits (less 1/3 for dividends) as well as greater RWA efficiency.
Strong results development highly diversified across the group
The group’s nine-month result of EUR 94.0 million is substantially higher than in the previous year’s period (9M 2022: EUR 17.3 million) and corresponds to a return on equity of 13.6% (9M 2022: 2.7%). 
The group’s operating income increased by 22.1%, driven by both higher net interest income and higher net fee and commission income. Net interest income increased by EUR 52.6 million or 27.4% to EUR 244.7 million (9M 2022: EUR 192.1 million), as the growth in interest income more than offset increased interest expenses. The net interest margin has widened by around 50 basis points so far this year, growing to 3.6% mainly due to higher key interest rates. In Q3, the net interest margin amounted to 3.9%.
At EUR 43.2 million, net fee and commission income was 7.4% above the same period in the previous year (9M 2022: EUR 40.2 million). Income from transaction and card business developed particularly positively. Net other operating income contributed EUR 13.2 million to total earnings (9M 2022: EUR 14.3 million); the relative decline of EUR 1.1 million was due to non-recurring positive effects in the previous year’s period. 
Overall, the group’s operating income improved by EUR 54.5 million, while personnel and administrative expenses increased by EUR 27.1 million. This resulted in a visible improvement of the cost-income ratio by 2.0 percentage points to 58.7% (9M 2022: 60.7%) and a strong EUR 27.4 million or 28.3% increase in profit before tax and loss allowances. 
Loss allowances of EUR 9.0 million (9M 2022: EUR 79.1 million) correspond to a cost of risk of 20 basis points. The group’s Stage 3 credit risk indicators improved further from the already good levels recorded at year-end 2022. Loss allowances of EUR 8.5 million were booked in the third quarter, largely in relation to the group’s operations in Ukraine. At group level, the share of defaulted loans decreased from 3.3% at year-end to 3.0%. For the group excluding Ukraine, this indicator also decreased slightly from 2.4% to 2.3%.
The positive operational and financial development of the group in 9M 2023 was supported by all ten banks in South Eastern and Eastern Europe. In South Eastern Europe, a result of EUR 72.4 million was achieved, corresponding to a return on equity of 14.2%. In Eastern Europe, the result of EUR 36.3 million is equivalent to a return on equity of 23.0%. 
ProCredit Bank Ukraine with positive result contribution and stable loan portfolio quality
ProCredit Bank Ukraine recorded a nine-month result of EUR 16.4 million (9M 2022: EUR -43.2 million), representing a return on equity of 33.4%. YTD loss allowances of EUR 6.1 million (9M 2022: EUR 73.1 million) relate largely to the termination of the grain deal involving Russia and Ukraine on 17 July 2023 and the expected impact on the bank’s loans to Ukrainian agricultural clients. Since the beginning of the year, the bank’s loan portfolio has decreased by EUR 39.0 million due to tightly controlled new business, whereas deposits showed strong growth of EUR 133.5 million. The share of defaulted loans stood at 10.5% at the end of the third quarter (31 December 2022: 11.9%). 
Management Board comments on raised 2023 outlook announced 26 October 2023
On 26 October 2023, the Management Board raised the outlook for financial year 2023, bringing the guidance for return on equity to the level of its medium-term outlook of around 12% (with a range of plus/minus 1 percentage point). The previously guided range for return on equity was 8%-10%. The updated guidance is now based on an assumed cost of risk of up to 30 basis points (previously: up to 45 basis points). The cost-income ratio is now expected at 60% – 62% (previously: 62 – 64%). Loan portfolio growth is anticipated in the low to mid single-digit percentage range (previously: mid single-digit percentage range). The updated guidance ranges continue to be subject to adverse assumptions for the fourth quarter of the year; in particular, they continue to take account for the ongoing combat activities in Ukraine and the associated uncertainties.
The outlook for a CET1 ratio over 13% and a leverage ratio around 9% were confirmed in the course of these adjustments. For the purpose of calculating the capital ratios, one-third of the interim profits for the financial year have been accrued for a dividend payment in 2024.
Chair of the Management Board, Hubert Spechtenhauser: “We see our nine-month results as a strong confirmation of the very good progress made across the group. We are particularly pleased by the strong and robust performance of our SME clients and the fact that all our ten banks in South Eastern and Eastern Europe were able to increase their contribution to group profit year-on-year. Against the background of our very granular and diversified positive development, we again raised our guidance for the ongoing year and now expect to achieve a return on equity at the level of our medium-term ambition of around 12%. It is important to note that we still see uncertainties due to the challenging operating environments in some markets, as well as risks from the still ongoing war against Ukraine. However, we remain confident and we believe that our 9M results underline our medium-term targets and demonstrate the medium- and long-term earning potential of our business model. In addition to our financial results, we want to again highlight the successful legal conversion into an AG that we finalised this quarter. We are convinced that we can further strengthen our positioning on the capital markets also in 2024. I am therefore pleased to announce our second Capital Markets Day to be held on 21 March 2024, at which we want to present our strategic initiatives and ambitions for the 2024 financial year and beyond in more detail.
The ProCredit group’s Quarterly Financial Report as of 30 September 2023 is available as of today on the ProCredit Holding website under Investor Relations at The financial calendar for ProCredit Holding is available at

9M 2023 results at a glance

in EUR m.

Statement of Financial Position 

  30.09.2023 31.12.2022 Change
Loan portfolio 6,226.3 6,107.7 118.6
Deposits 6,938.3 6,289.5 648.8

Statement of Profit or Loss

  01.01. – 30.09.2023 01.01. – 30.09.2022 Change
Net interest income 244.7 192.1 52.6
Net fee and commission income 43.2 40.2 3.0
Operating income 301.2 246.6 54.5
Personnel and administrative expenses 176.9 149.8 27.1
Loss allowance 9.0 79.1 -70.1
Profit of the period 94.0 17.3 76.6

Key performance indicators

  01.01. – 30.09.2023 01.01. – 30.09.2022 Change
Change in loan portfolio 1.9% 6.2% -4.3 pp
Cost-income ratio 58.7% 60.7%
-2.0 pp
Return on equity (annualised) 13.6% 2.7% 10.9 pp
  30.09.2023 31.12.2022 Change
CET1 ratio (fully loaded) 14.9% 13.5% 1.4 pp

Additional indicators

  30.09.2023 31.12.2022 Change
Deposits to loan portfolio 111.4% 103.0% 8.5 pp
Net interest margin (annualised) 3.6% 3.1% 0.5 pp
Cost of risk (annualised) 20 bp 174 bp -154 bp
Share of defaulted loans 3.0% 3.3% -0.3 pp
Stage 3 loans coverage ratio 59.5% 61.8% -2.3 pp
Green loan portfolio (in EUR m) 1,256.6 1,231.1 25.5


Andrea Kaufmann, Group Communications, ProCredit Holding, Tel.: +49 69 95 14 37 138, 
About ProCredit Holding AG
ProCredit Holding AG, based in Frankfurt am Main, Germany, is the parent company of the development-oriented ProCredit group, which consists of commercial banks for small and medium enterprises (SMEs). In addition to its operational focus on South Eastern and Eastern Europe, the ProCredit group is also active in South America and Germany. The company’s shares are traded on the Prime Standard segment of the Frankfurt Stock Exchange. The main shareholders of ProCredit Holding AG include the strategic investors Zeitinger Invest GmbH and ProCredit Staff Invest GmbH & Co KG (the investment vehicle for ProCredit staff), KfW, the Dutch DOEN Participaties BV and the European Bank for Reconstruction and Development. As the group’s superordinated company according to the German Banking Act and as the parent financial holding company of the ProCredit financial holding group, ProCredit Holding AG is supervised on a consolidated level by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the German Bundesbank. For additional information, visit: 
Forward-looking statements 
This press release contains statements relating to our future business development and financial performance, as well as statements relating to future actions or developments affecting ProCredit Holding which may constitute forward-looking statements. Such statements are based on the management of ProCredit Holding’s current expectations and specific assumptions, many of which are beyond the control of ProCredit Holding. They are therefore subject to a multitude of risks, uncertainties and factors. Should one or more of these risks or uncertainties materialise, or should underlying expectations or assumptions prove incorrect, then the actual results, performance and achievements (both negative and positive) of ProCredit Holding may differ significantly from those expressed or implied in the forward-looking statement. Beyond the legal requirements, ProCredit Holding does not undertake any obligation to update these forward-looking statements or to correct them in the event of deviations from the expected development.