ProCredit Announces Strong Q1 Results and Positive Start to 2024

ProCredit Holding AG & Co. KGaA has reported a robust Q1 result with a net profit of EUR 33.5 million for the first quarter of 2024, showcasing a return on equity of 13.4%. The company experienced significant growth in its loan portfolio, which saw an increase of 3.0%, and deposit growth of 2.8%, primarily driven by private clients. This growth is aligned with the company’s updated business strategies.

The company’s net interest margin improved to 3.7%, marking a 25 basis points increase compared to Q1 2023. The cost-income ratio was reported at 61.7%. On the risk front, ProCredit maintained a low cost of risk at 2 basis points, due to a stable loan portfolio quality and a conservative risk profile. The CET1 ratio stood firm at 14.3%, indicating strong capitalization and balance sheet growth.

ProCredit also announced a dividend proposal of EUR 0.64 per share for FY-23, adhering to its dividend policy. The dividend is scheduled to be discussed in the upcoming AGM on June 4, 2024. Additionally, the company successfully placed green Tier 2 bonds, raising EUR 125 million, substantially more than initially planned, further bolstering its capital structure for future growth.

The management expects continued growth in the loan portfolio around 10% for 2024, adjusted for currency effects, and an anticipated return on equity of 10-12%. They also forecast a cost-income ratio of around 63%, reflecting ongoing investments in IT and marketing.