The ProCredit group operates on a commercial and profitable basis and we see high growth potential in our markets of operation. Our performance in the past shows that our business model is stable, even in volatile macroeconomic times and markets.
The ProCredit group enjoys a simple balance sheet: our assets and liabilities largely consist of business loans and customer deposits, respectively. Our main source of income is the interest we charge on the loan portfolio. Interest rates are set transparently and are competitive in the market context in which we operate.
In recent years we have placed special emphasis on the quality and efficiency of the services we provide, which has proven to be in the best interests of our clients and has further improved our business results. Similarly, we have sustained a strong focus on the improvement of the loan portfolio quality management, which has generally kept our provisioning costs below those of our competitors. A comprehensive know-your-customer (KYC) approach and strong client loyalty in the broadest sense lie at the heart of our successful business model. Therefore, the key to sustainable success over the long term remains the training and quality of our staff in general and our Client Advisers and the managers who guide them.
Sustainability is an important element of our corporate strategy. The ProCredit group has in place a comprehensive environmental management system, which includes the analysis of the environmental impact of our activities as well as those of our customers. We also encourage investments in energy efficiency, renewable energy, and environmental protection. We do not finance business activities that are socially, morally or environmentally questionable or that are not in line with current health and safety practices. The group-wide Code of Conduct is binding for all employees and emphasises the obligation of staff to demonstrate mutual respect and act responsibly in everyday dealings.