Procredit Holding Ag · XETR:PCZ
Procredit — Q2 2024 Earnings Presentation
23 slides from Procredit's earnings presentation, August 2024
Slide 1: An impact-oriented group of commercial banks for MSMEs and private clients
An impact-oriented group of commercial banks for MSMEs and private clients in South Eastern and Eastern Europe Company presentation, August 2024
Slide 2: Why we exist
Why we exist “ Responsible banking in transition economies allows to combine comprehensive positive impact with attractive and sustainable returns for investors Economic impact Environmental impact ’’ Social impact 1
Slide 3: Who we are
Who we are Group of commercial banks for MSMEs1 and private clients Regional focus on South Eastern and Eastern Europe Comprehensive positive impact of our business Profitable each year since foundation > 20 years ago 1) Micro, small and medium-sized enterprises 2
Slide 4: Attractive and highly relevant region
Attractive and highly relevant region – particularly in context of EU accession – South Eastern Europe ProCredit active Albania, Bosnia, in 13 countries Bulgaria, Greece Kosovo, North Macedonia, Romania, Serbia Serving >250k clients Eastern Europe Georgia, Moldova, Ukraine Responsible Other banking
Slide 5: We make a difference for our clients
We make a difference for our clients Economic Environmental Responsibility Transparency development sustainability Trusted, Act responsibly Transparent and Comprehensive long-term towards clients, fair banking approach throughout banking partner environment & societies products organization MSMEs of
Slide 6: How we work with our clients
How we work with our clients ProCredit Strict customer focus customer-centric Hausbank approach approach: Cater all main client demands True understanding of clients’ needs and risks rigorous client selection + high service quality Prudent credit risk Strong digital channels + Central role of Busine
Slide 7: A team with shared values
A team with shared values Our key strength is our ~4,000 people Carefully selected, well-trained Develop staff and loyal staff capacities in own academies Clear salary structures and career options Share best Professional development in banking practices and and humanities become one team Strong com
Slide 8: ProCredit today
ProCredit today Headquartered in Frankfurt, supervised Strong positioning for increased scale by BaFin and Bundesbank, listed on 13 >250k ~€10bn the Frankfurt Stock Exchange countries clients balance sheet of operation Structure of the group Simple asset and liability structure €6.7bn ~20% €7.5b
Slide 9: Our customers
Our customers Micro, Small and Medium business clients Private clients Growing, stable ~90% Modern, transparent & ~10% businesses of loan portfolio reliable banking services of loan portfolio Investing in job creation and ~70k Digital customer journey ~200k economic development # MSME clients with a
Slide 10: Well-diversified loan portfolio
Well-diversified loan portfolio Loan portfolio by geographical segments Loan portfolio by sector Investment Housing and other Germany 1% Ecuador 7% 8% 3% Moldova 3% Bulgaria 19% Other economic Trade activities 25% 8% Georgia 7% Hotel, restaurant Ukraine 7% 3% Transportation 4% Serbia 14% Albania 5%
Slide 11: Where do we want to go
Where do we want to go Leading bank for MSMEs in our region Attractive bank for private clients with superior customer experience Increased size and scale for enhanced medium-term profitability Strong sustainability commitment Strategic investments in growth catalysts (people, IT, marketing, branche
Slide 12: Medium-term financial outlook
Medium-term financial outlook Substantially grow # clients: MSMEs +50% and private clients +150% > €10bn loan portfolio of which at least 25% green loans Return on equity to reach ~13 – 14%1 Offer attractive dividends in line with dividend policy (1/3 dividend payout ratio) 1) Without consideration
Slide 13: Appendix
@ ProCredit HOLDING Appendix 12
Slide 14: Measuring sustainability at ProCredit
Measuring sustainability at ProCredit KPI: Jobs 200k jobs supported by our SMEs Jobs and investment KPI: Investment 64% of our lending goes to Social capital formation impact KPI: Gender Equity Diversity and 20% of our clients are inclusion women owned SMEs Sustainability at ProCredit Green energy K
Slide 15: SBTi commitment to net-zero
SBTi commitment to net-zero We are pioneering decarbonisation with MSME clients in our markets of operations KPI: Emission Reduction Carbon neutrality & Support in the SBTi commitment to net-zero measurement of their CO2 emissions Engage with clients responsible for 28% of Support in setting their U
Slide 16: Financial overview
Financial overview In EUR m FY-22 FY-23 H1-23 H1-24 Y-o-Y Net interest income 264.6 337.2 155.7 180.6 24.9 Net fee and commission income 54.7 57.5 28.9 29.3 0.5 Other operating income (net) 20.5 17.8 7.2 9.8 2.6 Operating income 339.8 412.5 191.8 219.7 27.9 Income Personnel expenses 101.7 120.6 56.4
Slide 17: Net income contribution by segment
Net income contribution by segment H1 2024, in EURm 2 Customer loan portfolio (EURm) 5,003 1,124 490 – 6,656 Change in customer loan portfolio 8.1% 4.6% 1.7% – 6.9% Cost-income ratio 55.1% 48.2% 134.9% – 64.1% Allocated equity (EURm) 709 235 46 – 1,004 Return on equity1 16.4% 17.7% -19.6% – 11.6% 16
Slide 18: Prudent credit risk approach
Prudent credit risk approach 360° integrated view on business client situation in all cases Client profile ► High quality loan portfolio with low NPLs Business potential and business model Decision- Collateral making for a ► Consistently low provision costs imprinted in Impact & quality and tailored
Slide 19: History of ProCredit
History of ProCredit Long-term financial stability and attractive profitability Average RoE 8 – 9% 15% 10% 113 80 5% 61 61 58 50 54 54 44 47 46 48 36 39 41 28 30 12 13 16 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1-24 Profit for the year Group
Slide 20: ProCredit Holding Management
ProCredit Holding Management Hubert Spechtenhauser Christoph Beeck (Chairman) ► Group and PCH Human Resources ► Corporate Office ► Fraud Prevention and Compliance ► Group Communications and Group and PCH AML ► Legal ► Group and PCH Internal Audit ► Administration and Translation Eriola Bibolli Dr Gi
Slide 21: ProCredit on the capital market
ProCredit on the capital market Selected milestones Shareholder structure of ProCredit Holding AG ► 2016: Listing of ProCredit shares on the Frankfurt FREE-FLOAT Stock Exchange (Shareholdings below 5%) ► 2018: €60m capital increase 38.7% ► 2021: First Capital Markets Day ► 2023: Successful conversio
Slide 22: Notes
Notes Slides 3, 7 and 9 Slide 16 Greece via ProCredit Bulgaria entity 1) Based on average allocated segment equity; 2) Group functions, e.g. risk management, reporting, capital management, IT, liquidity management, training Slide 11 and development. Includes ProCredit Holding, Quipu, ProCredit Acade
Slide 23: Disclaimer
Disclaimer The material in this presentation and further supporting documents have This presentation and further supporting documents may contain forward- been prepared by ProCredit Holding AG, Frankfurt am Main, Federal looking statements including statements regarding our intent, belief or Republi