Frankfurt am Main, ProCredit Holding AG & Co. KGaA raises guidance for the current financial year

On the basis of the strong financial result in the first quarter and due to the ongoing positive development of key earnings drivers, the Management Board of ProCredit General Partner AG decided today to raise the guidance for the group’s return on equity and cost-income ratio in the current 2023 financial year as follows:

The Management Board now expects a return on equity of 8% to 10% and a cost-income ratio of 62% – 64% for the 2023 financial year. The guidance for return on equity is now based on an assumed cost of risk of up to 45 basis points. (more…)

Frankfurt am Main, ProCredit Holding AG & Co. KGaA discloses the completion of the announced change in the composition of its core shareholder base

The European Bank for Reconstruction and Development’s (EBRD’s) acquisition of the International Finance Corporation’s shares (IFC’s) in ProCredit Holding AG & Co. KGaA and ProCredit General Partner AG, announced on 17 March 2023, has been successfully completed.

Under the terms of the two share purchase agreements, the EBRD acquired 9.9% of IFC’s shares in ProCredit General Partner AG, which is the sole general partner of ProCredit Holding, as well as IFC’s remaining 5.06% of the limited partner shares in ProCredit Holding. The EBRD thus replaces IFC as the core shareholder of ProCredit Holding and now holds 8.7% of the group’s share capital. In addition to EBRD, the core shareholder base of the group consists of Zeitinger Invest, Kreditanstalt für Wiederaufbau (KfW), DOEN Participaties and ProCredit Staff Invest. (more…)

Frankfurt am Main, Strong Q1 result of ProCredit underlines the group’s positive medium-term outlook

  • Result of EUR 29.5 million corresponds to a strong RoE of 13.3%, and thus in the area of the group’s medium-term guidance
  • Good development of net interest margin to 3.4% and moderate cost of risk at 12 basis points as key result drivers
  • ProCredit Bank Ukraine makes moderate contribution to group result, demonstrating its structural strength despite a difficult environment; RoE excluding Ukraine at good level of 11.6%
  • Cost-income ratio adjusted for non-recurring effects at 57.0% and thus 2.5 percentage points below the level of the previous year
  • Deposit growth of 0.6%; loan portfolio declines slightly by 0.8%, with further improvement in portfolio quality
  • Continued focus on green loans; current share of 20.2% in total loan portfolio targeted to grow to 25% in the medium term
  • CET1 ratio at 14.1%; significant increase of 0.7 pp in Q1 driven by further growth in RWA efficiency

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Frankfurt am Main, ProCredit group further expands sustainability profile in 2022 with key initiatives

• Publication of the Impact Report Package for the 2022 financial year
• Own CO₂ emissions (scope 1 and scope 2) reduced by 44% since 2018
• Goal achieved with 20% portfolio share of green loans; new medium-term target is 25%
• Joined United Nations Global Compact (UNGC) for sustainable and responsible corporate governance
• Joined Net-Zero Banking Alliance (NZBA) and committed to set future short- and long-term emissions reductions using the Net-Zero Standard of the Science Based Targets initiative (SBTi)
• Implemented comprehensive Plastic Strategy; member of Finance Leadership Group on Plastics
• Continued to be a reliable partner for SMEs in Ukraine (more…)

Frankfurt am Main, ProCredit group with robust financial result and good operating profitability in 2022, RoE outlook for 2023 of 6-8%

• Group result of EUR 16.5 million (RoE at 1.9%) includes EUR 86.7 million in provisions for Ukrainian loan portfolio
• Operating income up 21% with positive net interest margin development
• Good underlying development of the group without Ukraine: 7.8% RoE, 6.9% portfolio growth, stable level of defaulted loans at 2.4%
• Cost-income ratio at level of medium-term target of approx. 60% excluding one-time effects from Ukraine (64.0% according to financial figures)
• Share of green loans exceeds previous medium-term target of 20%
• Digital banking for private clients supports strong 13.5% deposit growth
• Comfortable CET1 ratio (fully loaded) of 13.5% and leverage ratio of 8.9%
• Positive short-term forecast, even under adverse macroeconomic conditions; medium-term RoE forecast raised to around 12%

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Frankfurt am Main, European Bank for Reconstruction and Development establishes the groundwork to become a core shareholder of ProCredit Holding AG & Co. KGaA

On 17 March the signing of two share purchase agreements between the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), a member of the World Bank Group, has paved the way for a change in the composition of the core shareholder base of ProCredit Holding AG & Co. KGaA (ProCredit Holding) (more…)

Frankfurt am Main, Christian Dagrosa appointed to the Management Board of ProCredit General Partner AG

The Supervisory Board of ProCredit General Partner AG, the general partner of ProCredit Holding AG & Co. KGaA, has appointed Christian Dagrosa as a new member of the Management Board as of 1 January 2023. At the same time, the company announces that as planned Dr Gabriel Schor stepped down from the Management Board by mutual agreement upon expiry of his contract term on 31 December 2022. (more…)