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…)

ProCredit group finishes 2021 with a financial result above expectations, supporting management confidence in medium-term targets although the war in Ukraine limits ability for short-term forecast

• Increase in result of 92% to EUR 79.6 million despite challenging market environment; return on equity of 9.7% on level of medium-term target of approximately 10%
• Strong growth in loans of 12.8% and deposits of 13.1%
• Very solid capital base with CET1 ratio (fully loaded) of 14.1% and leverage ratio of 9.3%
• War in Ukraine leading to limited ability to forecast FY 2022 metrics; decision to propose to General Meeting to carry forward full amount of retained earnings for FY 2021
• Management reiterates the strategic benefits of the group’s long-term, impact-oriented business model and confirms the group’s medium-term targets (more…)

Further dividend payment for the 2020 financial year of EUR 0.35 per share resolved at Extraordinary General Meeting

ProCredit Holding AG & Co. KGaA (ProCredit Holding), based in Frankfurt am Main, Germany, which is the parent company of the development-oriented ProCredit group consisting of commercial banks for small and medium enterprises and whose operational focus is on South Eastern and Eastern Europe, held an Extraordinary General Meeting yesterday. In view of the ongoing COVID-19 pandemic it was held as a virtual event, as were other recent General Meetings. (more…)

ProCredit reports strong financial results and good growth figures as at 30 September 2021, underscoring its sustainable business model

• Increase in result of 86% to EUR 62.0 million; return on equity of 10.1% in line with the medium-term forecast of around 10%
• Significant growth in customer loans of 10.4% and customer deposits of 7.6% since the beginning of the year
• Scaling effects reflected in strong improvement of cost-income ratio to 62.4% (9M 2020: 66.5%)
• Risk costs at the low level of 8 basis points thanks to further improvements in credit risk indicators
• Return on equity for the 2021 financial year as a whole is expected to be at the upper end of the increased forecast range of 8.0 – 9.5%; cost-income ratio is likely to not exceed 65%
• Extraordinary General Meeting on 8 December 2021 to decide upon the already announced further dividend payment proposal of EUR 0.35 per ordinary share for the 2020 financial year (more…)