Frankfurt am Main, November 13 2025 9-month result 2025: ProCredit delivers strong and granular business growth; quarterly result impacted by one-time increase in loss allowance

• Strong 10.2% loan growth (adjusted for foreign exchange effects); around 80% of this increase driven by granular, lower-volume client segments
• Group result of EUR 58.2 million for 9M 2025 or 7.4% return on equity
• Positive quarter-on-quarter operating income trend supported by net interest margin improvement
• Loss allowance of EUR 16.6 million in Q3 relating largely to one-off reassessment of sub-portfolio in project finance
• Updated FY 2025 guidance for return on equity of 7-8% and cost-income ratio of around 72%

Strong business growth with positive trends in revenues

During the first nine months of 2025, the group’s loan portfolio grew by EUR 556 million (9M 2024: EUR 557 million). Excluding the effects from local currency depreciation, loans grew by a strong EUR 712 million and reflected broad-based expansion across all client segments and most markets, with particularly strong momentum in lending to micro and small enterprises as well as private clients.

Deposits increased by EUR 329 million (9M 2024: EUR 566 million); however, adjusted for currency effects, deposit growth exceeded the EUR 500 million mark. The largest part of these inflows came from private clients.

Net interest income for the first nine months amounted to EUR 260.8 million, with a net interest margin of 3.2% (9M 2024: EUR 270.6 million and 3.6%). On quarterly level, net interest income showed a further slight improvement compared to Q2. This was supported by strong loan growth and consolidating margins, despite ongoing high funding costs related to local market deposit rates.

Net fee and commission income continued its positive trend, increasing by EUR 3.8 million or 5.6% year-on-year to EUR 71.0 million (9M 2024: EUR 67.2 million), mainly due to strong development of transaction income and foreign exchange business. Net other operating income contributed EUR -8.1 million (9M 2024: EUR -7.1 million) to the overall result.

Personnel and administrative expenses stood at EUR 230.8 million (9M 2024: EUR 217.2 million), growing 6.3% year-on-year. This increase was mainly driven by the strong expansion of staff in 2024, in line with the group’s strategic growth initiatives. The cost-income ratio for the first nine months of 2025 stood at an elevated level of 71.3% (9M 2024: 65.7%) and reflected above all the cost increases from strategic growth investments and the prevailing market rates on deposits.

Robust portfolio quality, despite headwind from elevated loss allowance in Q3

The quality of the loan portfolio remained strong, with the share of defaulted loans at a continued low level of 2.1% (Q4 2024: 2.3%). For the nine-month period, the loss allowance amounted to EUR 16.9 million, corresponding to a cost of risk of 31 basis points (9M 2024: EUR 4.1 million or 8 basis points). The main driver for the elevated loss allowance was the EUR 16.6 million booked in the third quarter, relating predominantly to a one-off reassessment of a sub-portfolio of exposures in project finance.

“Prudent risk management is and remains at the centre of ProCredit’s core strengths. Although the temporarily elevated loss allowance in Q3 has impacted our 2025 ambitions, we consider it a one-off in nature. Our portfolio quality remains strong and is based on long-term client relationships, well-trained staff and effective risk management. Having said that, it is important to note that with our provisioning in Q3, we do not expect material additional provisioning for the remainder of the year,” Hubert Spechtenhauser noted.

The group’s CET1 capital ratio stood at 13.0% as of 30 September 2025 (Q4 2024: 13.1%), reflecting the solid capital position despite the strong balance-sheet growth.

Updated outlook for 2025, reaffirming medium-term ambition

Based on the performance year to date and the expectations for the fourth quarter, the Management Board has confirmed the guidance for full-year 2025 loan portfolio growth of around 12% (adjusted for foreign exchange effects) and a CET1 ratio of around 13% at year-end. The return on equity is now expected to be between 7% and 8% (previously: around 10%), considering primarily a cost of risk above the previous assumption of a “continued low cost of risk”. The cost-income ratio is expected to be around 72% (previously: around 70%).

Against the backdrop of the strong business growth and strategic progress in all key areas of the group’s scaling strategy, the Management Board reaffirms the medium-term outlook of a return on equity of around 13-14% and a cost-income ratio of around 57%. In this outlook, the contribution of ProCredit Bank Ukraine to return on equity at group level is largely neutral. The end of the war and subsequent reconstruction efforts with support by the Western community could provide an additional upside potential of around 1.5 percentage points to this guidance for return on equity.

The ProCredit group’s Quarterly Report as of 30 September 2025 is available as of today on the ProCredit Holding website under Investor Relations, at: https://www.procredit-holding.com/en/investor-relations/reports-publications/financial-reports. The financial calendar for ProCredit Holding can be found under Investor Relations, at: https://www.procredit-holding.com/investor-relations/financial-calendar.

^[1] adjusted for foreign exchange effects