Corporate news

Frankfurt am Main, 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…)

Frankfurt am Main, 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…)

Frankfurt am Main, 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…)

Frankfurt am Main, 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…)

Frankfurt am Main, 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…)

Frankfurt am Main, 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…)

Frankfurt am Main, 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…)

Frankfurt am Main, ProCredit holds virtual Capital Markets Day: Sustainability, scaling potential and profitability of the business model as focus of Management Board presentations

• Market position as a reliable bank for SMEs in Eastern and South Eastern Europe, with targeted promotion of environmentally sound investments as well as sustainable and impact-oriented banking practices
• Medium-term return on equity target of approximately 10% within reach; additional scaling effects expected to consolidate profitability further
• Management Board highlights competitive advantages and scaling potential; Management of ProCredit Bank Bulgaria presents local insights
(more…)