ProCredit with strong Q1 result and good start into the year

  • Result of EUR 33.5 million corresponds to a return on equity of 13.4%
  • Loan portfolio grows by 3.0%, with good contribution from all segments
  • Deposits grow by 2.8%; private clients as major driver in line with updated business strategy
  • Net interest margin of 3.7%, around 25 basis points higher than in Q1 2023; cost-income ratio at 61.7%
  • Cost of risk at low level of 2 basis points, as result of stable loan portfolio quality and conservative risk profile
  • CET1 ratio at 14.3%, reflecting steady capitalisation amid strong balance sheet growth during the period
  • Dividend proposal to AGM in June 2024: EUR 0.64 dividend per share, in line with dividend policy

The ProCredit group, which is mainly active in South Eastern and Eastern Europe, reported a strong financial result of EUR 33.5 million for the first three months of 2024, which corresponds to a return on equity of 13.4%. The loan portfolio showed strong growth of EUR 187 million or 3.0% and grew across all segments and all banks outside Ukraine. Deposit growth was similarly strong at 2.8%, mainly through deposits from private clients, which increased by more than 5%. The CET1 ratio remained steady at 14.3%, reflecting RWA growth broadly in line with the strong balance sheet development as well as the recognition of Q4-23 and Q1-24 profits (net of 1/3 for dividend accrual). The Management Board has proposed to the AGM scheduled for 4 June 2024 to pay out a dividend for FY-23 in the amount of EUR 0.64 per share, which corresponds to EUR 37.7 million in total.

The group’s loan portfolio grew by EUR 187 million or 3.0% in the first quarter of the year (Q1 2023: -0.8%), reflecting strong and renewed investment appetite among MSMEs and private clients in our markets. Outside Ukraine, the growth rate was even stronger at around 4.0%. In Ukraine, the portfolio declined by EUR 42 million due to higher than expected repayments and early repayments. Similarly, deposits displayed a marked increase of EUR 200 million or 2.8% (Q1 2023: 0.6%); this was attributable in particular to private clients and demonstrates the continued and growing success of ProCredit’s direct banking approach. Compared to the previous year’s period, the deposit-to-loan ratio increased by around 12 percentage points to a good level of 116% (Q1 2023: 104%).

Strong result based on good margin, stable loan portfolio quality and low cost of risk

The group’s Q1 result of EUR 33.5 million is 13.8% above the same period in the previous year (Q1 2023: EUR 29.5 million) and corresponds to a return on equity of 13.4% (Q1 2023: 13.3%).

The group’s operating income increased by 14.3%, driven primarily by higher net interest income. Net interest income increased by EUR 14.6 million or 19.4% to EUR 90.1 million (Q1 2023: EUR 75.4 million), with the net interest margin widening by around 25 basis points year-on-year to 3.7%.

Net fee and commission income increased slightly by 0.6% to EUR 14.1 million (Q1 2023: EUR 14.0 million). With EUR 3.0 million, the other income positions contributed less to operating income than in the previous year’s period (Q1 2023: EUR 4.3 million); the decline is mainly attributable to non-recurring effects.

Overall, the group’s operating income improved by EUR 13.4 million, while personnel and administrative expenses increased by EUR 10.2 million. The cost-income ratio increased by 2.1 percentage points to 61.7% (Q1 2023: 59.7%). As underlying cost discipline remained strict, the cost increases during the period were mainly a function of increased staff numbers and successfully executed investments in IT and marketing, in line with the updated group business strategy presented at the group’s Capital Markets Day in March 2024.

Loss allowances in the first quarter of the year amounted to EUR 0.3 million (Q1 2023: EUR 1.9 million), which corresponds to a low cost of risk of 2 basis points. In Ukraine, EUR 1.5 million in loss allowances were recognised, leading to a Q1 result of EUR 6.9 million for the bank there; this corresponds to a return on equity of 37.6%. The share of Stage 3 loans at group level has declined slightly since the beginning of the year to 2.6% (Q4 2023: 2.7%).

Comfortable capitalisation levels and successful green Tier 2 bond placement support the group’s medium-term growth ambitions

At 14.3%, the group’s CET1 ratio remained steady with respect to year-end 2023. Although strong 2% balance sheet growth increased RWAs, this effect has been absorbed by the recognition of Q4-23 and Q1-24 profits (net of 1/3 for dividend accrual).

On 25 April 2024, ProCredit Holding announced the successful placement of green Tier 2 subordinated bonds with international and domestic institutional investors. The strong demand for the bond enabled ProCredit Holding to increase the originally expected placement volume from EUR 100 million to EUR 125 million. The transaction was concluded under the Green Bond Framework and has increased the group’s total capital ratio from 15.7% as of 31 March 2024 to pro forma 17.7%.

In line with the group’s dividend policy to pay out one third of the consolidated result in dividends, the Management Board has proposed to the AGM scheduled for 4 June 2024 to distribute a dividend for FY-23 in the amount of EUR 0.64 per share. This would correspond to a payout of EUR 37.7 million in total.

Good start into the year, in line with the published guidance for 2024

For the 2024 financial year, the Management Board expects loan portfolio growth of around 10%, adjusted for currency effects. Return on equity is expected to be around 10-12%, based on a cautious estimate of up to 40 basis points for cost of risk. The cost-income ratio is expected to be around 63% (plus/minus 1 percentage point), which assumes a slightly decreased net interest margin and takes into account increased investments compared to previous years. The group’s CET1 ratio is expected to be above 13%, with the leverage ratio at around 9%.

The ProCredit group’s Quarterly Financial Report as of 31 March 2024 is available as of today on the ProCredit Holding website under Investor Relations at The financial calendar for ProCredit Holding is available at

Q1 2024 results at a glance

in EUR m.

Statement of Financial Position 

  31.03.2024 31.12.2023 Change
Loan portfolio 6,413.8 6,226.5 187.3
Deposits 7,454.6 7,254.2 200.4


Statement of Profit or Loss

  01.01. – 31.03.2024 01.01. – 31.03.2023 Change
Net interest income 90.1 75.4 14.6
Net fee and commission income 14.1 14.0 0.1
Operating income 107.2 93.7 13.4
Personnel and administrative expenses 66.1 55.9 10.2
Loss allowance 0.3 1.9 -1.6
Profit of the period 33.5 29.5 4.1


Key performance indicators

  01.01. – 31.03.2024 01.01. – 31.03.2023 Change
Change in loan portfolio 3.0% -0.8% 3.8 pp
Cost-income ratio 61.7% 59.7% 2.1 pp
Return on equity (annualised) 13.4% 13.3% 0.1 pp
  31.03.2024 31.12.2023 Change
CET1 ratio (fully loaded) 14.3% 14.3% 0.0 pp


Additional indicators

  31.03.2024 31.12.2023 Change
Deposits to loan portfolio 116.2% 116.5% -0.3 pp
Net interest margin (annualised) 3.7% 3.6% 0.0 pp
Cost of risk (annualised) 2 bp 25 bp -23 bp
Share of defaulted loans 2.6% 2.7% -0.1 pp
Stage 3 loans coverage ratio 57.8% 57.6% 0.1 bp
Green loan portfolio (in EUR m) 1,281.2 1,268.3 1.0%



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.