ProCredit Holding - Raising its mid-term targets
ProCredit Holding’s (PCB’s) new mid-term outlook is targeting a return on equity (ROE) of c 12% (previously 10%). We believe this is achievable for several reasons. Loan book growth should help realise further scaling effects. PCB’s net interest margin (NIM) should benefit from higher base rates and an improving deposit to loan ratio. The above should assist a further reduction in the cost-income ratio, with PCB’s mid-term target at c 57% versus 64% in FY22. We also expect PCB to sustain its good credit quality (25–30bp cost of risk over the cycle), while profitability should be assisted by improved risk-weighted assets density and a stabilisation at ProCredit Bank Ukraine.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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