ProCredit group finishes 2023 with a strong business and financial performance; RoE guidance achieved

  • Group result of EUR 113.4 million corresponds to RoE of 12.2%
  • Operating income up 21% with positive contribution from all regular income drivers
  • Cost-income ratio further improved by 4.1 pp to 59.9%
  • Loans grow by 1.9%; ProCredit Direct for private clients drives strong 15.3% deposit growth; CET1 ratio comfortable at 14.3%
  • New outlook published targeting a RoE of 10%-12% in 2024 and of 13%-14% in the medium-term
  • Management Board intends to propose dividend of EUR 0.64 per share (1/3 of consolidated result)

The ProCredit group, which is mainly active in South Eastern and Eastern Europe, recorded a strong financial result of EUR 113.4 million in 2023 that corresponds to a return on equity of 12.2%. Operating income increased by 21% year-on-year due to positive developments in all regular income streams. The cost-income ratio improved by 4.1 percentage points to 59.9%. The cost of risk normalised at a level of 25 basis points after the pronounced impact of the war in Ukraine on loss allowances in the previous year. The moderate 1.9% loan portfolio growth was largely attributable to ongoing portfolio reductions in Ukraine. Deposits showed good growth of EUR 965 million or 15.3% with a strong contribution from the retail segment. On the back of a comfortable CET1 ratio of 14.3%, the Management Board intends to propose a dividend of EUR 0.64 per share to the Annual General Meeting on 4 June 2024.

The group’s loan portfolio grew by EUR 119 million or 1.9% (2022: EUR +183 million or 3.1%), which includes a further reduction in Ukraine of EUR 85 million. Deposits grew by a strong EUR 965 million or 15.3% (2022: EUR +748 million or 13.5%), to which private individuals contributed approximately 50%.

Strong income development and increased cost efficiency

The group’s operating income increased for a second consecutive year by more than 20%, growing EUR 72.7 million or 21.4% compared to 2022 up to EUR 412.5 million (2022: EUR 339.8 million). This positive development is driven by higher net interest income, net fee and commission income, and income from foreign currency transactions. All ProCredit banks in South Eastern and Eastern Europe reported positive results, with most showing strongly improved or steady good levels of profitability and cost efficiency compared to the previous year.

Net interest income grew by EUR 72.6 million or 27.4% to EUR 337.2 million (2022: EUR 264.6 million). The net interest margin widened by 53 basis points to 3.6% as a result of largely stable lending margins and higher key interest rates. In Q4, the net interest margin amounted to 3.8%.

At EUR 57.5 million, net fee and commission income was 5.1% above the level recorded in the previous year (2022: EUR 54.7 million). Income from transaction and card business developed particularly positively. Net other operating income contributed EUR 17.8 million to the overall result (2022: EUR 20.5 million). The result from foreign exchange transactions, which is included in this line item, showed a good increase of EUR 4.1 million or 17.2%. In the last quarter of 2023, additional tax charges of approximately EUR 10 million were booked for the bank in Ukraine as a result of a newly introduced one-time bank tax.

Personnel and administrative expenses grew by EUR 29.6 million or 13.6%. This increase was mainly due to higher costs for staff, IT and marketing. The cost-income ratio improved visibly by 4.1 percentage points to a good level of 59.9% (2022: 64.0%).

Steady portfolio quality keeps cost of risk at good level, despite further additions to management overlays

The share of defaulted loans decreased by 0.6 percentage points to 2.7% (2022: 3.3%), mainly due to steady repayments and write-offs in Ukraine. In Ukraine, the share of defaulted loans decreased by 4.6 percentage points to 7.3% (2022: 11.9%). Excluding the good performance of the Ukrainian portfolio, this ratio also improved slightly by 0.1 percentage points to 2.3% (2022: 2.4%).

Cost of risk normalised at a level of 25 basis points after the pronounced impact of the war in Ukraine in the previous year (2022: 174 bps). Loss allowances in the amount of EUR 15.5 million (2022: EUR 104.6 million) were above all driven by additional management overlays in relation to the war in Ukraine and the continued high level of global political and macroeconomic uncertainty. The total amount of management overlays in the group’s loss allowances increased by EUR 22.3 million to EUR 62.0 million (2022: EUR 39.6 million).

Management Board announces outlook for FY 2024 and the medium-term

Against the backdrop of the strong financial performance in 2023, the Management Board expects a return on equity of around 10%-12% for 2024, which is based on a cautious estimate of up to 40 basis points for the cost of risk. The cost-income ratio is expected to be around 63%, which takes into account increased investments and assumes a slightly decreased net interest margin.

We continue to invest strongly in the areas staff, IT and marketing, as we want to visibly increase our footprint in our markets in the coming years in order to achieve important scaling effects, strengthen margins on both sides of the balance sheet, and amplify the positive impact we seek to generate in the societies and economies in which we operate”, Hubert Spechtenhauser commented.

In the medium-term, ProCredit intends to achieve a group loan portfolio of over EUR 10 billion, a highly granular deposit base with a share of retail clients of approximately 50% and local deposit-to-loan ratios of around 120% at most banks. The medium-term return on equity is expected to increase to a level of approximately 13%-14%, assuming a cost of risk of around 30-35 basis points. The cost-income ratio is expected to be approximately 57% (without one-off effects).

An update to the group business strategy and the background to the new medium-term guidance will be presented at the group’s Capital Markets Day on 21 March 2024.

The ProCredit group’s Annual Report 2023 and Impact Report 2023 are available as of today in the Investor Relations section of the ProCredit Holding website at and The Impact Report Package consists of two parts. The Impact Report itself provides a detailed overview of ProCredit Holding’s sustainability strategy as well as its sustainability performance, initiatives and goals for the future. The Impact Report is supplemented by a comprehensive datasheet. Furthermore, the group voluntarily discloses in its Annual Report its strategies, plans and methodologies in the context of two topic-specific standards, ESRS E1 “Climate Change” and ESRS S1 “Own Workforce”, in line with the principles of the International Integrated Reporting Framework.


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.