ProCredit group reports resilient financial result as strong operational performance for 9M 2022 balances continued provisions for Ukrainian operations

• Group result of EUR 17.3 million in 9M 2022, with the third quarter contributing EUR 9.6 million; RoE at 2.7%
• 9M 2022 result includes provisions of EUR 79.1 million or 173 bps cost of risk, largely for Ukrainian loan portfolio; credit-impaired loans at 3.1%
• Result excluding Ukrainian operations up by EUR 15.8 million or 35%, annualised RoE at good level of 9.0%
• Cost-income ratio improves by 1.7 percentage points to 60.7% as operating income increases markedly by 21%
• Portfolio grows by 6.2% with share in green loans increased to 19.7%
• Comfortable CET1 ratio (fully loaded) of 13.6% and leverage ratio of 9.3% (more…)

ProCredit Holding intends to convert into a stock corporation (Aktiengesellschaft)

ProCredit General Partner AG, in consultation with its shareholders, the core shareholders of ProCredit Holding, today agreed to prepare a change of the legal form of ProCredit Holding from a partnership limited by shares (KGaA) to a stock corporation company (Aktiengesellschaft, AG). The change of legal form requires approval by the shareholders of the Company (Kommanditaktionäre) and is to be obtained at a general meeting within the next two years. The group’s business focus and, in particular, its commitment to impact-orientation and to the provision of responsible banking services mainly in South Eastern and Eastern Europe, will remain strong and unaffected. (more…)

Creditors of ProCredit Holding AG & Co. KGaA agree to changes in terms and conditions of debt instruments

As announced on July 5, 2022, ProCredit Holding AG & Co. KGaA (“the Company”) has asked for the consent of its creditors to amend the terms of certain fixed rate debt instruments of the Company (bearer bonds, registered bonds, promissory notes and a non-subordinated loan, together “Debt Instruments”). In total, the Company had asked creditors of Debt Instruments with a total nominal amount of EUR 289.5 million to consent to the suspension of the extraordinary termination right. The consent rate across relevant debt instruments is currently 76% (total nominal amount EUR 221 million; for the determination of this consent rate, the still necessary implementation of the agreements and consents of the creditors through the adjustment of security certificates as well as publication and registration obligations are not taken into account). (more…)

ProCredit group reports positive half-year result; efficiency gains across the group balance substantial provisions for Ukrainian operations

• Result of EUR 7.7m or annualised RoE of 1.8% includes provisioning of EUR 57.3m mainly for Ukrainian loan portfolio
• Result excluding Ukrainian operations increased by more than 60% compared to H1 2021
• Cost-income ratio improved by 4.3 percentage points to 60.1% based on good increase in operating income by 24% on H1 2021
• Growth in loans of 6.2%, credit-impaired loans increased to 2.6% due to Ukrainian portfolio
• Prudent capital base with CET1 ratio (fully loaded) of 13.7% and leverage ratio of 9.7%
• Guidance for the financial year 2022 updated (more…)

ProCredit group achieves good business development and improves profitability at nearly all banks, although provisions for Ukrainian operations drive negative Q1 2022 result

• Result of EUR -1.7 million driven by EUR 35.3 million provisions for Ukrainian loan portfolio
• Underlying profitability in all other countries of operation further increased
• Growth in loans of 1.8%, portfolio quality remains strong with a low level of 2.3% credit impaired loans
• Cost-income ratio improves by 5.7 percentage points to 59.1% as operating income increases by 24% compared to Q1 2021
• Largest segment South Eastern Europe achieves significant increase in return on equity to 12.2%
• Prudent capital base with CET1 ratio (fully loaded) of 13.4% and leverage ratio of 9.2% (more…)

ProCredit group once again achieves key milestones in the implementation of its comprehensive sustainability strategy in 2021

• Publication of the Impact Report Package for the 2021 financial year
• CO₂ emissions reduced by 56% since 2018
• Portfolio share of green loans to clients at 19%, saving 324.5 kilotonnes of CO₂
• Development impact highlighted by low default rates of SME clients and high loan portfolio quality throughout the pandemic
• Further expansion and group-wide promotion of e-mobility
• Stricter exclusion criteria in lending
• EU Taxonomy provides tailwind for the financing of sustainable investments
• Ukraine: Support for employees and continued operations (more…)