Procredit Holding Ag · XETR:PCZ
Procredit — ProCredit Holding AG & Co. KGaA — Q3 2013 Earnings Presentation
41 slides from Procredit's earnings presentation, September 2013
Slide 1: Group Presentation
Group Presentation September 2013
Slide 2: Table of contents
Table of contents • Institutional overview • Key figures • Lending • Deposit taking • Banking Services • Risk profile • Financial performance Group Presentation | September 2013 2
Slide 3: Institutional overview
Institutional overview Group Presentation | September 2013 3
Slide 4: The business model of the ProCredit banks: Responsible financing for development
The business model of the ProCredit banks: Responsible financing for development “House bank” for very small, small and Savings deposits and account management medium-sized enterprises for “ordinary people” • Goal: to support business development and • Goal: to help foster a savings culture job crea
Slide 5: The ProCredit group in 22 countries
The ProCredit group in 22 countries Eastern Europe: 72% of assets Latin America: 24% of assets Africa: 4% of assets Group Presentation | September 2013 5
Slide 6: Shareholder Structure of ProCredit Holding AG & Co. KGaA
Shareholder Structure of ProCredit Holding AG & Co. KGaA The ownership structure of ProCredit Holding represents a public private partnership: 17.7% 10.0% 2.6% 6.8% Omidyar-Tufts 5.7% 1.9% 13.6% 5.7% 1.8% 13.3% 5.3% GAWA 0.5% 10.3% 4.8% ProCredit Holding has consolidated equity of EUR 491 million. P
Slide 7: ProCredit Bank Germany & Group Supervision
ProCredit Bank Germany & Group Supervision ProCredit Bank Germany • Began operations in Sept 2012 • Is developing steadily with a simple business model focused on specific German clients and supporting the group • At end-September, the bank had total assets of EUR 192 million and a staff of 48 Group
Slide 8: ProCredit approach to staff development
ProCredit approach to staff development The ProCredit Regional Academy in Colombia All potential new recruits participate in a six month Young Bankers Programme before being hired Regional Academies (Macedonia & Bank training centres: Colombia): Systematic, intensive on-the-job training: mathematics
Slide 9: Key figures
Key figures Group Presentation | September 2013 9
Slide 10: Key figures of the ProCredit group
Key figures of the ProCredit group Key figures of the ProCredit group EUR m 2009 2010 2011 2012 Sep-13 Gross loan portfolio 3,341 3,653 4,029 4,191 4,191 PAR 30 rate 2.7% 3.6% 3.6% 4.1% 5.2% Total assets 4,949 5,188 5,494 5,769 5,807 Customer deposits 2,998 3,227 3,419 3,627 3,742 Customer deposits/
Slide 11: Recent developments and priorities
Recent developments and priorities Results • Steady RoE (9%) and growth (<5%) in still very difficult macroeconomic environment Focused quality positioning • Successful introduction of higher minimum loan size exceptions for certain clients, agricultural loans etc. Training around relationship •
Slide 12: Deposits and outstanding loan volume by country
Deposits and outstanding loan volume by country 700 EUR m 600 500 400 300 200 100 0 Loan portfolio Customer deposits Group Presentation | September 2013 12
Slide 13: Lending
Lending Group Presentation | September 2013 13
Slide 14: Loan portfolio development
Loan portfolio development Volume in EUR m Growth in EUR m 4,400 140 126 120 117 120 4,200 100 94 80 69 67 60 4,000 58 40 40 26 20 3,800 1 15 0 -20 -20 3,600 -40 -60 3,400 -80 -100 3,200 -120 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Loan portfolio Growth (e
Slide 15: (Business) loan portfolio development by size (exposure)
(Business) loan portfolio development by size (exposure) Growth EUR m rate (yoy) 4,000 14.7% -5.5% 3,500 3,000 15.4% 16.2% 3.6% 2,500 16.2% 4.1% 22.8% 2,000 20.3% 1,500 30.4% 5.4% 25.3% 1,000 500 22.9% 15.8% -9.6% 0 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
Slide 16: Loan portfolio development by region
Loan portfolio development by region Growth rate (yoy) 4,500 EUR m 0.2% 2.4% 5.9% 4,000 7.3% -7.3% 0.0% 3,500 1.8% 18.6% 3.2% 7.7% 3,000 15.0% 16.0% 2,500 -2.3% 14.5% 2,000 1,500 55.7% -0.2% 1,000 61.0% 500 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
Slide 17: Loan portfolio development by currency
Loan portfolio development by currency 4,500 35.2% EUR m 4,000 34.4% 35.0% 33.5% 33.9% 33.1% 3,500 31.8% 30.9% 35.2% 30.1% 30.3% 26.7% 29.4% 3,000 28.1% 26.7% 2,500 24.5% 2,000 27.1% 1,500 1,000 46.2% 40.3% 500 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep
Slide 18: Steady development of diversified loan portfolio
Steady development of diversified loan portfolio 4,500 2.7% 2.4% EUR m 3.1% 4,000 4.9% 4.8% 3.4% 5.1% Outstanding Business LP by Sector: 3,500 3.8% September-2013 6.2% Agriculture 3,000 6.6% 18% 17% Trade 2,500 Industry and 9% other production 2,000 92.4% 92.8% 91.8% Construction 4% 90.4% 1,500 89.6
Slide 19: Overview of green loan portfolio as of September 2013
Overview of green loan portfolio as of September 2013 Total volume of loans: EUR 109.8 million Total number of loans: 10,858 loans Outstanding Volume ('000 Outstanding number of loans EUR) 140,000 14,000 120,000 12,000 10,836 10,858 10,371 10,209 100,000 10,393 10,000 9,498 9,755 8,562 80,000 7,838
Slide 20: Breakdown of the combined portfolio into loan size categories
Breakdown of the combined portfolio into 5 loan size categories Distribution by Volume Distribution by Number EUR m 4,165 8% 4% 1% 498,582 18% 15% 24% 23% 71% 36% up to EUR/USD 10,000 from EUR/USD 10,000 up to 50,000 from EUR/USD 50,000 up to 150,000 from EUR/USD 150,000 up to 500,000 above EUR/USD
Slide 21: Financing medium and long-term growth: Business loans by maturity
Financing medium and long-term growth: Business loans by maturity (volume) As % of total business loan portfolio (not including business overdrafts) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 up to 12 months
Slide 22: Monthly loan disbursements
Monthly loan disbursements EUR m 320 300 30 280 29 29 260 28 27 27 26 27 240 23 23 24 220 200 20 19 180 160 140 120 100 80 60 40 20 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Volume of loans Number of loans in Thousands Group Presentation | September
Slide 23: Deposit taking
Deposit taking Group Presentation | September 2013 23
Slide 24: Customer deposits development All Banks
Customer deposits development All Banks Volume in EUR m Growth in EUR m 4,400 180 4,200 4,000 130 131 3,800 119 3,600 80 75 80 74 3,400 3,200 40 30 31 3,000 12 15 8 19 2,800 -30 -20 2,600 2,400 -70 2,200 2,000 -120 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 D
Slide 25: Deposit development by product & deposit / loan ratio
Deposit development by product & deposit / loan ratio Growth rate (yoy) 4,000 91.2% EUR m 3,500 89.3% 88.4% 3,000 86.9% 86.1% 86.6% 86.1% 1.3% 2,500 85.5% 85.2% 84.2% 84.8% 53% 60% 2,000 83.5% 82.1% 1,500 22% 1,000 11.6% 18% 500 25% 22% 6.8% 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
Slide 26: Deposit development by region
Deposit development by region Growth rate (yoy) 4,000 EUR m 1.6% 5% 4.2% 3,500 6% -9.2% 0.0% 4% 3,000 6.7% 7% 17% 14% 2,500 14% 11.3% 11% 2,000 1,500 1.7% 56% 1,000 63% 500 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Balkan CIS South America Central A
Slide 27: Deposit development by size
Deposit development by size Growth 4,000 rate (yoy) EUR m 3,500 11% -5.9% 3,000 10% 12% 6.6% 10% 2,500 16% 9.5% 15% 2,000 31% 29% 10.7% 1,500 1,000 35% 32% 500 0.7% 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 up to EUR/USD 10,000 from EUR/USD 10,001 u
Slide 28: Breakdown of the deposit base into size categories
Breakdown of the deposit base into 5 size categories (active accounts only) Distribution by Volume Distribution by Number EUR m 3,518 12% 3% 0% 0% 2,102,362 30% 10% 17% 31% 97% up to EUR/USD 10,000 from EUR/USD 10,001 up to 50,000 from EUR/USD 50,001 up to 150,000 from EUR/USD 150,001 up to 500,000
Slide 29: Banking services
Banking services Group Presentation | September 2013 29
Slide 30: Transactions (number) All banks
Transactions (number) All banks The group is steadily 93.5 million 92.4 million 92.3 million 67.8 million 100% increasing the level of non-cash transfers 90% In Eastern Europe 80% transfers, card transactions and e- 70% banking are well 60% developed In Africa card cash 50% withdrawals have 40% succ
Slide 31: Risk profile
Risk profile Group Presentation | September 2013 31
Slide 32: Risk profile
Risk profile • Credit Risk: Elevated, but stable PAR. Portfolio quality much better than market • Liquidity Risk: Low risk due to high liquidity and diversified, stable local deposit base • Counterparty/Issuer Risk: Low risk due to very conservative investment policy • Currency Risk: Risk only relat
Slide 33: Customer credit risk
Customer credit risk Portfolio at risk above 30 days (PAR 30) 9.0% 8.0% • After a decrease of arrears in 7.0% 7.2% December followed by an increase of arrears at the beginning of this year 6.0% 5.7% PAR 30 is now stable at 5% 5.0% 5.2% 4.0% • The increase of PAR 30 was mainly 3.8% 3.0% driven by the
Slide 34: Financial performance
Financial performance Group Presentation | September 2013 34
Slide 35: Group financial development (Balance sheet)
Group financial development (Balance sheet) in EUR m Dec-11 Sep-12 Dec-12 Sep-13 Assets Short Term Assets 1,294.7 1,357.5 1,407.4 1,443.8 Net loan portfolio 3,870.8 4,018.9 4,015.2 4,004.1 Gross loan portfolio 4,029.3 4,194.9 4,190.6 4,190.7 Allowance for impairment on loans and advances to customer
Slide 36: Group financial development: Consolidated Income Statement
Group financial development Consolidated Income Statement in EUR k [YTD] Dec-11 Sep-12 Dec-12 Sep-13 Interest income 591,618 471,172 635,187 466,173 Interest expenses 181,280 146,001 195,259 142,782 Net interest income 410,338 325,171 439,929 323,391 Allowance for impairment losses on loans and adva
Slide 37: Net interest income development
Net interest income development 115 30% EUR m 110 25% 105 20% 100 15% 95 10% 90 5% 85 0% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Net interest income Net interest income / Avg. total assets Avg. costs of funding Avg. income on loans Group Presentatio
Slide 38: Loan loss provisions expenses
Loan loss provisions expenses 25 2.5% EUR m 20 2.0% 15 1.5% 10 1.0% 5 0.5% 0 0.0% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 LLP expenses LLP expenses /GLP Group Presentation | September 2013 38
Slide 39: Net fee and commission income, trading result
Net fee and commission income, trading result 20 10 EUR m EUR bn 18 9 16 8 14 7 12 6 10 5 8 4 6 3 4 2 2 1 0 0 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Net fee and comission income (m) Trading result (m) Domestic payments (bn) International payments (
Slide 40: Personnel and administrative expenses
Personnel and administrative expenses 120 120% EUR m 100 100% 80 80% 60 60% 40 40% 20 20% 0 0% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Administration expenses (incl. Depreciation) Personnel expenses Cost-income ratio (before allowances) Group Presen
Slide 41: Profitability development
Profitability development 20 100% EUR m 18 90% 16 80% 14 70% 12 60% 10 50% 8 40% 6 30% 4 20% 2 10% 0 0% Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Profit to equity holders RoAE Cost-income ratio (before allowances) Group Presentation | September 2013 4
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