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


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…)

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%


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…)

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…)

ProCredit group joins the Net-Zero Banking Alliance and commits to set near- and long-term emissions reductions company-wide with the Science Based Target initiative (SBTi) Net-Zero Standard

In line with its commitment to a climate-positive future and confirming its net-zero ambition, ProCredit Holding AG & Co. KGaA (ProCredit Holding), the parent company of the impact- and development-oriented ProCredit group, has joined the Net-Zero Banking Alliance (NZBA). This industry-led, UN-convened alliance of banks worldwide is committed to aligning their lending and investment portfolios with net-zero emissions by 2050 or sooner. This is in accordance with the most ambitious targets set in the Paris Climate Agreement. Furthermore, the ProCredit group has committed to set its future near- and long-term emissions reductions in accordance with the Science Based Targets initiative (SBTi) Net-Zero Standard, as part of the Business Ambition for 1.5°C and UNFCCC Race to Zero campaign. The SBTi has yet to approve the targets. (more…)

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…)