Corporate news

Frankfurt am Main, ProCredit Management Board presents updated business strategy for a broadened ProCredit footprint on its second Capital Markets Day

  • A new era for ProCredit: positioning as an attractive and responsible bank for private individuals to be enhanced to complement the group’s strong footing as a leading MSME bank in South Eastern and Eastern Europe
  • Loan portfolio to grow to more than EUR 10bn in the medium term and achieve important scaling effects
  • Investments in staff, IT, marketing and market presence to accelerate client and balance sheet growth
  • Strong profit growth planned with medium-term RoE outlook raised to ~13%-14%
  • Accelerated efforts to achieve the group’s net-zero commitment through targeted client engagement

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Frankfurt am Main, ProCredit group reaches key milestones in its comprehensive sustainability strategy in 2023 and defines further targets

  • Publication of the Impact Report Package for the 2023 financial year
  • Opening of the ProCredit “ProEnergy” solar park in Kosovo demonstrates the group’s commitment to achieve climate neutrality
  • Head office of ProCredit Bank Ukraine awarded EDGE certification for green buildings, bringing the total number of our head offices receiving this distinction to six
  • Development of Gender Action Plan and the first steps for an inclusive finance concept strengthened by joining the 2X Global initiative
  • Strategy to achieve net-zero emissions and SBTi-validated near-term science-based emission reduction targets defined

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Frankfurt am Main, ProCredit group finishes 2023 with a strong business and financial performance; RoE guidance achieved

  • Group result of EUR 113.4 million corresponds to RoE of 12.2%
  • Operating income up 21% with positive contribution from all regular income drivers
  • Cost-income ratio further improved by 4.1 pp to 59.9%
  • Loans grow by 1.9%; ProCredit Direct for private clients drives strong 15.3% deposit growth; CET1 ratio comfortable at 14.3%
  • New outlook published targeting a RoE of 10%-12% in 2024 and of 13%-14% in the medium-term
  • Management Board intends to propose dividend of EUR 0.64 per share (1/3 of consolidated result) (more…)

Frankfurt am Main, Science Based Targets initiative has validated ProCredit Holding AGs near-term emission reduction targets

• Validation by the Science Based Targets initiative (SBTi) confirms ProCredit Holding’s near-term targets as science-based in accordance with the Paris Climate Agreement
• ProCredit Holding commits to reducing the group’s absolute Scope 1 and Scope 2 GHG emissions by 42% by 2030 with 2022 as the base year
• ProCredit Holding’s validated Scope 3 Portfolio Targets cover 57% of its overall investment and lending by total assets as of 2022
• ProCredit Holding’s Scope 3 target is to engage with the clients responsible for 28% of the group’s portfolio emissions to set their own science-based targets by 2027
• ProCredit Holding commits to continue only financing renewable energy projects through 2030 (more…)

Frankfurt am Main, ProCredit: No significant impact anticipated from the increase in the Ukrainian profit tax for banks; forecast for 2023 and medium-term outlook confirmed

A law formally ratified by the Ukrainian President on 06 December 2023 that raises the profit tax rate for banks from 18% to 50% for 2023 and will prohibit banks from applying losses from previous years to the current year’s profit will have no impact on the group outlook for the 2023 financial year as of the current date. Also through this law a permanent increase of the tax rate on bank profits to 25% is to be implemented from 2024 onwards. Despite the financial impact of these changes on ProCredit Bank Ukraine, the Management Board confirms the FY 2023 and medium-term outlook for the ProCredit group. (more…)

Frankfurt am Main, ProCredit achieves strong 9M result and a 13.6% return on equity; all group banks in South Eastern and Eastern Europe with enhanced operational and financial performance

  • Result of EUR 94.0 million in 9M 2023 corresponds to a return on equity of 13.6%, and is thus in the area of the group’s medium-term guidance
  • High diversification of positive development, with all ten group banks in South Eastern Europe and Eastern Europe contributing higher results
  • Net interest margin of 3.6%, around 50 basis points higher than in 9M 2022
  • Good level of cost efficiency, as cost-income ratio improves to 58.7%
  • Cost of risk at 20 basis points, reflecting stable loan portfolio quality and conservative risk profile
  • Particularly good deposit growth of 10.3%; loans increased by 1.9%, with positive growth dynamics in Q2 and Q3
  • Strong 9M result contributed to the raised guidance for the 2023 financial year, as announced on 26 October 2023

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Frankfurt am Main, ProCredit Holding AG: Conversion into joint stock company successfully completed

The parent company of the development-oriented ProCredit group has successfully completed the transformation of its legal form into that of a stock corporation (AG). The conversion was completed with today’s entry of ProCredit Holding AG in the commercial register (27 September 2023). Beforehand, the Annual General Meeting held on 5 June 2023 had already resolved to approve the change in legal form with a very large majority. The conversion into a stock corporation is intended to further enhance investor acceptance, especially among international market participants, while at the same time simplifying the corporate structure. The business focus of ProCredit Holding, and in particular its emphasis on South Eastern and Eastern Europe and its commitment to impact orientation, will remain unchanged. (more…)