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13.05.2024 06:58:31 - dpa-AFX: EQS-News: ProCredit with strong Q1 result and good start into the year (english)
ProCredit with strong Q1 result and good start into the year
EQS-News: ProCredit Holding AG / Key word(s): Quarter Results/Quarterly /
Interim Statement
ProCredit with strong Q1 result and good start into the year
13.05.2024 / 06:58 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
ProCredit with strong Q1 result and good start into the year
* Result of EUR 33.5 million corresponds to a return on equity of 13.4%
* Loan portfolio grows by 3.0%, with good contribution from all segments
Frankfurt am Main, 13 May 2024 - The ProCredit group, which is mainly active
in South Eastern and Eastern Europe, reported a strong financial result of
EUR 33.5 million for the first three months of 2024, which corresponds to a
return on equity of 13.4%. The loan portfolio showed strong growth of EUR
187 million or 3.0% and grew across all segments and all banks outside
Ukraine. Deposit growth was similarly strong at 2.8%, mainly through
deposits from private clients, which increased by more than 5%. The CET1
ratio remained steady at 14.3%, reflecting RWA growth broadly in line with
the strong balance sheet development as well as the recognition of Q4-23 and
Q1-24 profits (net of 1/3 for dividend accrual). The Management Board has
proposed to the AGM scheduled for 4 June 2024 to pay out a dividend for
FY-23 in the amount of EUR 0.64 per share, which corresponds to EUR 37.7
million in total.
The group's loan portfolio grew by EUR 187 million or 3.0% in the first
quarter of the year (Q1 2023: -0.8%), reflecting strong and renewed
investment appetite among MSMEs and private clients in our markets. Outside
Ukraine, the growth rate was even stronger at around 4.0%. In Ukraine, the
portfolio declined by EUR 42 million due to higher than expected repayments
and early repayments. Similarly, deposits displayed a marked increase of EUR
200 million or 2.8% (Q1 2023: 0.6%); this was attributable in particular to
private clients and demonstrates the continued and growing success of
ProCredit's direct banking approach. Compared to the previous year's period,
the deposit-to-loan ratio increased by around 12 percentage points to a good
level of 116% (Q1 2023: 104%).
Strong result based on good margin, stable loan portfolio quality and low
cost of risk
The group's Q1 result of EUR 33.5 million is 13.8% above the same period in
the previous year (Q1 2023: EUR 29.5 million) and corresponds to a return on
equity of 13.4% (Q1 2023: 13.3%).
The group's operating income increased by 14.3%, driven primarily by higher
net interest income. Net interest income increased by EUR 14.6 million or
19.4% to EUR 90.1 million (Q1 2023: EUR 75.4 million), with the net interest
margin widening by around 25 basis points year-on-year to 3.7%.
Net fee and commission income increased slightly by 0.6% to EUR 14.1 million
(Q1 2023: EUR 14.0 million). With EUR 3.0 million, the other income
positions contributed less to operating income than in the previous year's
period (Q1 2023: EUR 4.3 million); the decline is mainly attributable to
non-recurring effects.
Overall, the group's operating income improved by EUR 13.4 million, while
personnel and administrative expenses increased by EUR 10.2 million. The
cost-income ratio increased by 2.1 percentage points to 61.7% (Q1 2023:
59.7%). As underlying cost discipline remained strict, the cost increases
during the period were mainly a function of increased staff numbers and
successfully executed investments in IT and marketing, in line with the
updated group business strategy presented at the group's Capital Markets Day
in March 2024.
Loss allowances in the first quarter of the year amounted to EUR 0.3 million
(Q1 2023: EUR 1.9 million), which corresponds to a low cost of risk of 2
basis points. In Ukraine, EUR 1.5 million in loss allowances were
recognised, leading to a Q1 result of EUR 6.9 million for the bank there;
this corresponds to a return on equity of 37.6%. The share of Stage 3 loans
at group level has declined slightly since the beginning of the year to 2.6%
(Q4 2023: 2.7%).
Comfortable capitalisation levels and successful green Tier 2 bond placement
support the group's medium-term growth ambitions
At 14.3%, the group's CET1 ratio remained steady with respect to year-end
2023. Although strong 2% balance sheet growth increased RWAs, this effect
has been absorbed by the recognition of Q4-23 and Q1-24 profits (net of 1/3
for dividend accrual).
On 25 April 2024, ProCredit Holding announced the successful placement of
green Tier 2 subordinated bonds with international and domestic
institutional investors. The strong demand for the bond enabled ProCredit
Holding to increase the originally expected placement volume from EUR 100
million to EUR 125 million. The transaction was concluded under the Green
Bond Framework and has increased the group's total capital ratio from 15.7%
as of 31 March 2024 to pro forma 17.7%.
In line with the group's dividend policy to pay out one third of the
consolidated result in dividends, the Management Board has proposed to the
AGM scheduled for 4 June 2024 to distribute a dividend for FY-23 in the
amount of EUR 0.64 per share. This would correspond to a payout of EUR 37.7
million in total.
Good start into the year, in line with the published guidance for 2024
For the 2024 financial year, the Management Board expects loan portfolio
growth of around 10%, adjusted for currency effects. Return on equity is
expected to be around 10-12%, based on a cautious estimate of up to 40 basis
points for cost of risk. The cost-income ratio is expected to be around 63%
(plus/minus 1 percentage point), which assumes a slightly decreased net
interest margin and takes into account increased investments compared to
previous years. The group's CET1 ratio is expected to be above 13%, with the
leverage ratio at around 9%.
The ProCredit group's Quarterly Financial Report as of 31 March 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.
Q1 2024 results at a glance
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 (the
investment vehicle for ProCredit staff), 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.
---------------------------------------------------------------------------
13.05.2024 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.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1900813 13.05.2024 CET/CEST
EQS-News: ProCredit Holding AG / Key word(s): Quarter Results/Quarterly /
Interim Statement
ProCredit with strong Q1 result and good start into the year
13.05.2024 / 06:58 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
ProCredit with strong Q1 result and good start into the year
* Result of EUR 33.5 million corresponds to a return on equity of 13.4%
* Loan portfolio grows by 3.0%, with good contribution from all segments
* Deposits grow by 2.8%; private clients as major driver in line with
updated business strategy
* Net interest margin of 3.7%, around 25 basis points higher than in Q1
2023; cost-income ratio at 61.7%
* Cost of risk at low level of 2 basis points, as result of stable loan
portfolio quality and conservative risk profile
* CET1 ratio at 14.3%, reflecting steady capitalisation amid strong
balance sheet growth during the period
* Dividend proposal to AGM in June 2024: EUR 0.64 dividend per share, in
line with dividend policy
Frankfurt am Main, 13 May 2024 - The ProCredit group, which is mainly active
in South Eastern and Eastern Europe, reported a strong financial result of
EUR 33.5 million for the first three months of 2024, which corresponds to a
return on equity of 13.4%. The loan portfolio showed strong growth of EUR
187 million or 3.0% and grew across all segments and all banks outside
Ukraine. Deposit growth was similarly strong at 2.8%, mainly through
deposits from private clients, which increased by more than 5%. The CET1
ratio remained steady at 14.3%, reflecting RWA growth broadly in line with
the strong balance sheet development as well as the recognition of Q4-23 and
Q1-24 profits (net of 1/3 for dividend accrual). The Management Board has
proposed to the AGM scheduled for 4 June 2024 to pay out a dividend for
FY-23 in the amount of EUR 0.64 per share, which corresponds to EUR 37.7
million in total.
The group's loan portfolio grew by EUR 187 million or 3.0% in the first
quarter of the year (Q1 2023: -0.8%), reflecting strong and renewed
investment appetite among MSMEs and private clients in our markets. Outside
Ukraine, the growth rate was even stronger at around 4.0%. In Ukraine, the
portfolio declined by EUR 42 million due to higher than expected repayments
and early repayments. Similarly, deposits displayed a marked increase of EUR
200 million or 2.8% (Q1 2023: 0.6%); this was attributable in particular to
private clients and demonstrates the continued and growing success of
ProCredit's direct banking approach. Compared to the previous year's period,
the deposit-to-loan ratio increased by around 12 percentage points to a good
level of 116% (Q1 2023: 104%).
Strong result based on good margin, stable loan portfolio quality and low
cost of risk
The group's Q1 result of EUR 33.5 million is 13.8% above the same period in
the previous year (Q1 2023: EUR 29.5 million) and corresponds to a return on
equity of 13.4% (Q1 2023: 13.3%).
The group's operating income increased by 14.3%, driven primarily by higher
net interest income. Net interest income increased by EUR 14.6 million or
19.4% to EUR 90.1 million (Q1 2023: EUR 75.4 million), with the net interest
margin widening by around 25 basis points year-on-year to 3.7%.
Net fee and commission income increased slightly by 0.6% to EUR 14.1 million
(Q1 2023: EUR 14.0 million). With EUR 3.0 million, the other income
positions contributed less to operating income than in the previous year's
period (Q1 2023: EUR 4.3 million); the decline is mainly attributable to
non-recurring effects.
Overall, the group's operating income improved by EUR 13.4 million, while
personnel and administrative expenses increased by EUR 10.2 million. The
cost-income ratio increased by 2.1 percentage points to 61.7% (Q1 2023:
59.7%). As underlying cost discipline remained strict, the cost increases
during the period were mainly a function of increased staff numbers and
successfully executed investments in IT and marketing, in line with the
updated group business strategy presented at the group's Capital Markets Day
in March 2024.
Loss allowances in the first quarter of the year amounted to EUR 0.3 million
(Q1 2023: EUR 1.9 million), which corresponds to a low cost of risk of 2
basis points. In Ukraine, EUR 1.5 million in loss allowances were
recognised, leading to a Q1 result of EUR 6.9 million for the bank there;
this corresponds to a return on equity of 37.6%. The share of Stage 3 loans
at group level has declined slightly since the beginning of the year to 2.6%
(Q4 2023: 2.7%).
Comfortable capitalisation levels and successful green Tier 2 bond placement
support the group's medium-term growth ambitions
At 14.3%, the group's CET1 ratio remained steady with respect to year-end
2023. Although strong 2% balance sheet growth increased RWAs, this effect
has been absorbed by the recognition of Q4-23 and Q1-24 profits (net of 1/3
for dividend accrual).
On 25 April 2024, ProCredit Holding announced the successful placement of
green Tier 2 subordinated bonds with international and domestic
institutional investors. The strong demand for the bond enabled ProCredit
Holding to increase the originally expected placement volume from EUR 100
million to EUR 125 million. The transaction was concluded under the Green
Bond Framework and has increased the group's total capital ratio from 15.7%
as of 31 March 2024 to pro forma 17.7%.
In line with the group's dividend policy to pay out one third of the
consolidated result in dividends, the Management Board has proposed to the
AGM scheduled for 4 June 2024 to distribute a dividend for FY-23 in the
amount of EUR 0.64 per share. This would correspond to a payout of EUR 37.7
million in total.
Good start into the year, in line with the published guidance for 2024
For the 2024 financial year, the Management Board expects loan portfolio
growth of around 10%, adjusted for currency effects. Return on equity is
expected to be around 10-12%, based on a cautious estimate of up to 40 basis
points for cost of risk. The cost-income ratio is expected to be around 63%
(plus/minus 1 percentage point), which assumes a slightly decreased net
interest margin and takes into account increased investments compared to
previous years. The group's CET1 ratio is expected to be above 13%, with the
leverage ratio at around 9%.
The ProCredit group's Quarterly Financial Report as of 31 March 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.
Q1 2024 results at a glance
in EUR m
Statement of Financial Position 31.03.2024 31.12.2023 Change
Loan portfolio 6,413.8 6,226.5 187.3
Deposits 7,454.6 7,254.2 200.4
Statement of Profit or Loss 1.1.-31.3.202- 1.1.-31.3.202- Chang-
4 3 e
Net interest income 90.1 75.4 14.6
Net fee and commission income 14.1 14.0 0.1
Operating income 107.2 93.7 13.4
Personnel and administrative 66.1 55.9 10.2
expenses
Loss allowances 0.3 1.9 -1.6
Profit of the period 33.5 29.5 4.1
Key performance indicators 1.1.-31.3.2024 1.1.-31.3.2023 Change
Change in loan portfolio 3.0% -0.8% 3.8 pp
Cost-income ratio 61.7% 59.7% 2.1 pp
Return on equity (annualised) 13.4% 13.3% 0.1 pp
31.3.2024 31.12.2023 Change
CET1 ratio (fully loaded) 14.3% 14.3% 0.0 pp
Additional indicators 31.3.2024 31.12.2023 Change
Deposits to loan portfolio 116.2% 116.5% -0.3 pp
Net interest margin (annualised) 3.7% 3.6% 0.0 pp
Cost of risk (annualised) 2 bp 25 bp -23 bp
Share of defaulted loans 2.6% 2.7% -0.1 pp
Stage 3 loans coverage ratio 57.8% 57.6% 0.1 pp
Green loan portfolio 1,281.2 1,268.3 1.0%
(in EUR m)
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 (the
investment vehicle for ProCredit staff), 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.
---------------------------------------------------------------------------
13.05.2024 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.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
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: 1900813
End of News EQS News Service
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1900813 13.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
PROCREDIT HLDG AG NA EO 5 | 622340 | Frankfurt | 9,940 | 23.05.24 08:13:00 | +0,040 | +0,40% | 9,920 | 10,050 | 9,940 | 9,900 |
