ProCredit Holding - Executing its updated strategy
ProCredit Holding (PCB) recorded strong sequential loan book growth of 3.8% in Q224 (and 6.9% in H124), a run-rate ahead of management’s FY24 guidance of 10% (excluding FX). This was achieved at a stable year-on-year net interest margin of 3.6%, translating into a 12.8% y-o-y increase in net interest income to €90.5m in Q224. The execution of the company’s updated strategy resulted in a 27.4% y-o-y increase in personnel and administrative expenses, leading to a cost-to-income ratio (CIR) of 66.3% (Q223: 59.7%). Moreover, PCB booked €5.4m in loss allowances (vs a net €1.3m release in Q223), which still represents a limited annualised cost of risk of 33bp (in line with PCB’s FY24 guidance of up to 40bp). As a result, net income declined 30.5% y-o-y in Q224, with a return on equity (RoE) of 9.5% (H124: 11.6%), compared to management’s FY24 guidance of 10–12%.Procredit Holding Ag & Co Kgaa. ProCredit Holding AG & Co KGaA is a Germany-based company, which is primarily engaged in the financial services industry. The Company operates as a parent for development-oriented ProCredit group, which consists of commercial banks for small and medium enterprises (SMEs) and whose operational focus is on South Eastern and Eastern Europe. In addition to this regional presence, the ProCredit group is also active in South America and Germany. The Company operates through various subsidiaries, such as ProCredit Bank SA, ProCredit Bank (Bulgaria) EAD, ProCredit Bank AG, ProCredit Academy GmbH, Quipu GmbH, ProCredit Bank SA, ProCredit Bank ShA, Banco ProCredit Colombia SA, Banco ProCredit SA, JSC ProCredit Bank, Banco Pyme Los Andes ProCredit SA, BC ProCredit Bank, JSC ProCredit Bank, as well as operates special purpose vehicles PC Finance II BV and Fideicosimo Primera Tituarizacion de Cartera Comercial Pymes ProCredit, among others.
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