ProCredit Holding AG
ISIN: DE0006223407
WKN: 622340
14 November 2024 06:58AM

EQS-News: ProCredit 9M result: strong loan portfolio growth in line with group ambitions for increased scale

ProCredit Holding AG · ISIN: DE0006223407 · EQS - Company News
Country: Germany · Primary market: Germany · EQS NID: 2029437

EQS-News: ProCredit Holding AG / Key word(s): 9 Month figures/9 Month figures
ProCredit 9M result: strong loan portfolio growth in line with group ambitions for increased scale

14.11.2024 / 06:58 CET/CEST
The issuer is solely responsible for the content of this announcement.


ProCredit 9M result: strong loan portfolio growth in line with group ambitions for increased scale

  • Loan portfolio grows by a strong 9.0%, with smaller-volume segments of private, micro and small business clients as the main driver
  • Deposits grow by 7.8% and the number of clients by 7.4%, underlining good progress in the group’s growth trajectory
  • 9M profit of EUR 84.8 million corresponds to a return on equity of 11.3%
  • Good level of profitability as +9.8% increase in operating income and low cost of risk of 8 bps balance strong investments; increased cost-income ratio
  • Updated FY 2024 guidance on selected metrics: loan growth, cost-income ratio and return on equity
  • 1/3 of year-end result earmarked for dividend payout in 2025

Frankfurt am Main, 14 November 2024 - The ProCredit group, which is mainly active in South Eastern and Eastern Europe, has continued on its growth path which was laid out at its Capital Markets Day at the beginning of the year. The loan portfolio grew by EUR 557 million or 9.0% across all segments and all banks in South Eastern and Eastern Europe except Ukraine. This growth was matched by a continued good deposit development of EUR 566 million or 7.8% since the beginning of the year, mainly from private clients. During the first nine months of the year (9M), the group achieved a profit of EUR 84.8 million amid continued strong investments in staff, IT and marketing; the result corresponds to a return on equity of 11.3%. Based on the performance in the first nine months and the expectations for the fourth quarter, on 5 November 2024 the Management Board updated its FY 2024 guidance for the metrics of loan growth, cost-income ratio and return on equity. Capitalisation levels remained comfortable as the group’s CET1 ratio amounted to 14.1% and the total capital ratio to 17.3% as of September 2024. Against this background, and in line with the group’s dividend policy, the Management Board intends to propose to the AGM in June 2025 a payout of 1/3 of the consolidated result for FY 2024.

Strong progress in the group’s ambitious growth trajectory

The loan portfolio grew by EUR 557 million or 9.0% in the first nine months of the year (9M 2023: 1.9%), thanks to a benign investment environment in the region as well as the ongoing execution of the updated growth strategy. More than 60% of this growth came from the lower-volume segments of private individuals, micro and small business clients. Another driver of this substantial increase was the strong business performance of the group’s smaller banks, which grew their loan portfolios by an average of 15% year-to-date. Similarly, deposits displayed a good increase of EUR 566 million or 7.8% (9M 2023: 10.3%). Private clients contributed strongly to this result and are at the centre of the group’s deposit strategy.

Good operating income growth and low risk costs besides significant investments in growth catalysts

The group’s operating income increased by 9.8% or EUR 29.5 million compared to the first nine months of 2023, driven primarily by higher net interest income. Net interest income increased by EUR 25.9 million or 10.6% to EUR 270.6 million (9M 2023: EUR 244.7 million) on the back of a steady net interest margin on the level of the previous year of around 3.6%.

Net fee and commission income increased slightly by 1.8% to EUR 44.0 million (9M 2023: EUR 43.2 million). Standing at EUR 16.1 million (9M 2023: EUR 13.2 million), other income positions contributed some EUR 2.9 million more to the group’s result than in the first nine months of 2023, mostly due to higher income from foreign exchange transactions.

Personnel and administrative expenses rose by EUR 40.3 million, which resulted in an increase in the cost-income ratio of 6.9 percentage points to 65.7% (9M 2023: 58.7%). Cost increases during the period were mainly related to significant investments in growth catalysts. In particular, higher staff numbers and continued investments in IT and marketing contributed to the increase in this line item.

Loss allowances amounted to EUR 4.1 million (9M 2023: EUR 9.0 million), which corresponds to an annualised cost of risk of 8 basis points. The share of Stage 3 loans at group level has declined since the beginning of the year by 0.4 percentage points to 2.3% (YE 2023: EUR 2.7%).

Updated FY 2024 guidance on selected metrics

Based on the performance in the first nine months and the expectations for the fourth quarter, on 5 November 2024 the Management Board updated selected metrics of the FY 2024 guidance. The strong business development year-to-date and an accelerated execution of strategic investments, as well as reduced expectations for the full-year profit contribution from the banks in Ukraine and Ecuador contributed to this update.

As for the growth of the loan portfolio, the management now expects an increase of more than 10% (previously: around 10% adjusted for currency effects), reflecting the stronger-than-expected dynamics of the group’s loan portfolio since the beginning of the year, but also a seasonal slow-down of SME lending towards the end of the year.

The cost-income ratio is now expected to end at around 66% (previously 63% +/- 1pp). Key projects, such as the placement of Tier 2 bonds in April, were successfully executed ahead of schedule and on a larger scale, and important investments, especially in the areas of staff and IT, were driven forward faster than expected, all contributing to an increase in the metric.

The return on equity is now expected to be around 10% (previously 10-12%). Inter alia, this reflects the new expectation of a temporary increase in the FY 2024 tax rate for Ukrainian banks to 50%, which will negatively impact the consolidated result by a high single-digit million euro amount in Q4. The tax rate applicable for Ukrainian banks for the following years is set at 25%. On the back of an overall strong financial performance of the group’s banks in South Eastern and Eastern Europe, which was in line with expectations, the deteriorated macroeconomic conditions for the group’s bank in Ecuador were also reflected in this update.

Comfortable capitalisation levels supporting growth ambitions and intended dividend payout in 2025

With a CET1 ratio of 14.1% and a total capital ratio of 17.3% as of September 2024, the group’s capitalisation levels were comfortable. As of September 2024, profits for H1 2024 were recognised as regulatory capital, net of the 1/3 dividend accrual for this period. 

The Management Board intends to propose to the AGM in June 2025 a payout of 1/3 of FY 2024 consolidated result in line with the group’s dividend policy.

The ProCredit group’s quarterly report as of 30 September 2024 is available as of today on the ProCredit Holding website under Investor Relations at https://www.procredit-holding.com/en/investor-relations/reports-publications/financial-reports. The financial calendar for ProCredit Holding is available at https://www.procredit-holding.com/investor-relations/financial-calendar

 

9M 2024 results at a glance

 

in EUR m        
Statement of financial position   30.09.2024 31.12.2023 Change
Loan portfolio   6,783.8 6,226.5 557.4
Deposits   7,820.5 7,254.2 566.3

 

Statement of profit or loss 1.1.-30.09.2024 1.1.-30.09.2023 Change
Net interest income 270.6 244.7 25.9
Net fee and commission income 44.0 43.2 0.8
Operating income 330.7 301.2 29.5
Personnel and administrative expenses 217.2 176.9 40.3
Loss allowance 4.1 9.0 -4.9
Profit of the period 84.8 94.0 -9.2

 

Key performance indicators 1.1.-30.09.2024 1.1.-30.09.2023 Change
Change in loan portfolio 9.0% 1.9% 7.0 pp
Cost-income ratio 65.7% 58.7% 6.9 pp
Return on equity (annualised) 11.3% 13.6% -2.3 pp

 

  30.09.2024 31.12.2023 Change
CET1 ratio (fully loaded) 14.1% 14.3% -0.2 pp

 

Additional indicators 30.09.2024 31.12.2023 Change
Deposits to loan portfolio 115.3% 116.5% -1.2 pp
Net interest margin (annualised) 3.6% 3.6% 0.0 pp
Cost of risk (annualised) 8 bp 25 bp -17 bp
Share of defaulted loans 2.3% 2.7% -0.4 pp
Stage 3 loans coverage ratio 56.1% 57.6% -1.5 pp
Green loan portfolio
(in EUR m)
1,318.7 1,268.3 4.0%

 

 

Contact:

Andrea Kaufmann, Group Communications, ProCredit Holding, Tel.: +49 69 95 14 37 138,
E-mail: Andrea.Kaufmann@procredit-group.com

About ProCredit Holding AG

ProCredit Holding AG, based in Frankfurt am Main, Germany, is the parent company of the development-oriented ProCredit group, which consists of commercial banks for small and medium enterprises (SMEs). In addition to its operational focus on South Eastern and Eastern Europe, the ProCredit group is also active in South America and Germany. The company’s shares are traded on the Prime Standard segment of the Frankfurt Stock Exchange. The main shareholders of ProCredit Holding AG include the strategic investors Zeitinger Invest GmbH and ProCredit Staff Invest GmbH & Co. KG, KfW, the Dutch DOEN Participaties BV and the European Bank for Reconstruction and Development. As the group’s superordinated company according to the German Banking Act and as the parent financial holding company of the ProCredit financial holding group, ProCredit Holding AG is supervised on a consolidated level by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the German Bundesbank. For additional information, visit: https://www.procredit-holding.com/

Forward-looking statements

This press release contains statements relating to our future business development and financial performance, as well as statements relating to future actions or developments affecting ProCreditHolding which may constitute forward-looking statements. Such statements are based on the management of ProCredit Holding’s current expectations and specific assumptions, many of which are beyond the control of ProCreditHolding. They are therefore subject to a multitude of risks, uncertainties and factors. Should one or more of these risks or uncertainties materialise, or should underlying expectations or assumptions prove incorrect, then the actual results, performance and achievements (both negative and positive) of ProCredit Holding may differ significantly from those expressed or implied in the forward-looking statement. Beyond the legal requirements, ProCredit Holding does not undertake any obligation to update these forward-looking statements or to correct them in the event of deviations from the expected development.



14.11.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: ProCredit Holding AG
Rohmerplatz 33-37
60486 Frankfurt am Main
Germany
Phone: +49-69-951437-0
Fax: +49-69-951437-168
E-mail: pch.info@procredit-group.com
Internet: www.procredit-holding.com
ISIN: DE0006223407, DE000A289FD2, DE000A3E5LD7, DE000A0N37P3, DE000A161YW4, DE000A3MP7Z1, DE000A289E87, DE000A3E47A7, DE000A2YN7F2, DE000A2YN017
WKN: 622340
Indices: im Freiverkehr der Frankfurter Wertpapierbörse
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 2029437

 
End of News EQS News Service

2029437  14.11.2024 CET/CEST

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Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.

The most important financial data at a glance
  2018 2019 2020 2021 2022 2023 2024e
Sales1 245,39 252,60 252,11 281,88 339,85 412,51 0,00
EBITDA1,2 77,53 76,87 52,09 94,53 17,85 150,02 0,00
EBITDA-Margin3 31,60 30,43 20,66 33,54 5,25 36,37 0,00
EBIT1,4 77,53 76,87 52,09 94,53 17,85 150,02 0,00
EBIT-Margin5 31,60 30,43 20,66 33,54 5,25 36,37 0,00
Net Profit (Loss)1 54,48 54,31 41,40 79,64 16,50 113,37 0,00
Net-Margin6 22,20 21,50 16,42 28,25 4,86 27,48 0,00
Cashflow1,7 27,32 290,34 135,89 133,15 566,94 524,05 0,00
Earnings per share8 0,90 0,89 0,70 1,35 0,28 1,92 1,60
Dividend per share8 0,30 0,00 0,53 0,00 0,00 0,64 0,60
Quelle: boersengefluester.de and Company information
Explanation

1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de

Auditor: BDO

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INVESTOR-INFORMATION
©boersengefluester.de
ProCredit Holding
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
622340 DE0006223407 AG 454,70 Mio € 22.12.2016 Kaufen 9F2C4JCV+FR
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
4,17 10,07 0,41 7,62 0,47 0,87 1,10
Dividends
Dividend '2022
in €
Dividend '2023
in €
Dividend '2024e
in €
Div.-Yield '2024e
in %
0,00 0,64 0,60 7,77%
Financial calendar
Annual General Meeting Q1-figures Q2-figures Q3-figures Annual press conference
04.06.2025 12.05.2025 14.08.2025 14.11.2024 27.03.2025
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
-1,03%
7,72 €
ATH 22,50 €
-4,64% -10,91% -4,69% -4,46% -37,18%

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