Slide 1: Q2 2022 results
Dr Gabriel Schor, Member of the Management Board Christian Dagrosa, Manager Q2 2022 results Frankfurt am Main, August 2022
Slide 2: Agenda
Agenda A Highlights B Group results C Segment performance D Asset quality and capital Q&A Appendix ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022 1
Slide 3: Highlights H1 2022
Highlights H1 2022 Positive H1 2022 result amid strong cost-efficiency improvements, despite continued negative impact from the war in Ukraine ► Result of EUR 7.7m (annualised RoE 1.8%) includes provisioning of EUR 57.3m in H1-22 mainly for Ukrainian operations ► Strong increase in result excluding
Slide 4: Continued strong growth in customer loans
Continued strong growth in customer loans Loan portfolio growth ► H1 2022 customer loan growth of EUR 370m or 6.2% 6.2% 85 74 6,294 Growth in all loan categories, with stronger demand for 212 working capital loans with maturities < 3 years, as clients 5,924 stock up inventory due to high inflation
Slide 5: Good deposit development through digital banking channels
Good deposit development through digital banking channels ► YOY increase of EUR 720m (+14.3%) based on strong client Deposits by product relationships and growing appeal of digital approach Achieved mostly through growth in business clients, also private client deposits increasing visibly (+ EUR 1
Slide 6: Positive expected GDP development in SEE/EE despite more difficult overall environment
Positive expected GDP development in SEE/EE despite more difficult overall environment Overview of regional presence in SEE/EE Macroeconomic environment / key current themes • Ongoing with significant human and economic losses in War on Ukraine; further development difficult to assess Ukraine • Curr
Slide 7: H1 2022 results versus updated guidance
H1 2022 results versus updated guidance Updated guidance Actual FY 2022 H1 2022 High single digit percentage 6.2% ► Growth of the loan portfolio growth (FX adjusted) (4.7% FX adjusted) 1.8% ► Return on equity (RoE) Substantially below the level of 2021 (annualised) ► Cost-income ratio (CIR) 60 – 63%
Slide 8: Agenda
Agenda A Highlights B Group results C Segment performance D Asset quality and capital Q&A Appendix ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022
Slide 9: H1 2022 results at a glance
H1 2022 results at a glance In EUR m Q2-2021 Q2-2022 H1-2021 H1-2022 y-o-y Net interest income 53.9 64.7 103.2 124.8 21.6 Net fee and commission income 12.1 13.7 24.1 26.3 2.2 Other operating income (net) 0.5 4.2 2.1 9.1 7.0 Operating income 66.5 82.5 129.3 160.2 30.9 Income Personnel expenses 21.1
Slide 10: Net interest income
Net interest income ► Q2-22 NII increased by EUR 4.5m against Q1-22, well above all 3.1% previous quarters 3.0% 3.0% 2.9% 2.9% NIM increased by 18 bps against Q1-22 to 3.1%, mainly driven by higher base rates and number of days 64.7 60.6 60.2 58.2 ► Compared to Q2-21, Q2-22 NII EUR 10.8m or 20% hi
Slide 11: Provisioning expenses
Provisioning expenses ► Q2-22 loan loss provisioning expenses at EUR 21.7m, driven almost entirely by provisions for Ukrainian portfolio Ongoing risk assessment reflecting significant stage transfers within the Ukrainian portfolio 238 bps Cost of risk of 141 bps decreased compared to Q1-22 but s
Slide 12: Net fee and commission income
Net fee and commission income ► Q2-22 net fee and commission income of EUR 13.7m, 8.2% or 13.8 13.7 EUR 1.0m above Q1-22 13.0 12.6 12.1 • Increase back to level achieved in Q4-21 mostly related to seasonally low transaction business beginning of the year ► Against Q2-21, net fee and commission incom
Slide 13: Personnel and administrative expenses
Personnel and administrative expenses ► Q2-22 cost-income ratio of 61.0% with marked improvement 68.7% YOY by 3.0 percentage points 64.0% 61.0% 59.0% 59.1% Close to medium-term target level of <60% despite 26.0 challenging operating environment 23.6 H1-22 cost-income ratio of 60.1% improved by 4
Slide 14: Agenda
Agenda A Highlights B Group results C Segment performance D Asset quality and capital Q&A Appendix ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022
Slide 15: Contribution of regional segments to group net income (H1 2022)
Contribution of regional segments to group net income (H1 2022) Group functions, e.g. risk management, reporting, capital management, IT, liquidity management, training and development Includes ProCredit Holding, Quipu, ProCredit Academy Fürth, PCB Germany (EUR 50m loan portfolio; EUR 264m deposits)
Slide 16: Segment perspective: South Eastern Europe
Segment perspective: South Eastern Europe Regional loan portfolio breakdown Development of key financials Operating income (€m) Cost-income ratio Bosnia & Herzegovina -7.5 ppt +22% Albania 6% 6% 93.7 64.5% 57.0% 76.7 Bulgaria Romania 31% 8% H1-21 H1-22 H1-21 H1-22 Profit after tax (€m) Return on equ
Slide 17: Segment perspective: Eastern Europe
Segment perspective: Eastern Europe Regional loan portfolio breakdown Development of key financials Operating income (€m) Cost-income ratio Moldova 12% +26% -0.3 ppt 37.8 47.5 46.1% 45.8% H1-21 H1-22 H1-21 H1-22 Profit after tax (€m) Return on equity n/m - 39 ppt Georgia 17.6% 18.0 30% -25.0 -21.5%
Slide 18: Segment perspective: South America
Segment perspective: South America Regional loan portfolio breakdown Development of key financials Operating income (€m) Cost-income ratio +42% - 18 ppt 8.2 11.6 98.3 % 79.9 % H1-21 H1-22 H1-21 H1-22 Profit after tax (€m) Return on equity Ecuador >100% 100% 4.2 ppt 1.1 0.0 0.0% 4.2% H1-21 H1-22 H1-2
Slide 19: Update on ProCredit Bank Ukraine
Update on ProCredit Bank Ukraine Current status of operations (11.08.2022) Regional risk classification (as per beginning Aug-22) ► Safety of staff: c. 95% of staff continue working from decentral locations in and outside Ukraine ► Banking operations basically uninterrupted: 4 out of 5 branches open
Slide 20: Agenda
Agenda A Highlights B Group results C Segment performance D Asset quality and capital Q&A Appendix ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022
Slide 21: Structure of the loan portfolio
Structure of the loan portfolio Loan portfolio by geographical segments Loan portfolio by sector Investment and other Germany consumer loans Ecuador 1% 1% Other Housing 8% Moldova Bulgaria economic 7% 3% Wholesale and 21% activities retail trade Georgia Hotel, 7% 25% 7% restaurant and catering 3% Co
Slide 22: Loan portfolio quality
Loan portfolio quality IFRS 9 ► Stage 3 loans increased by 0.3 pp to 2.6%, due to stage transfers within Ukrainian portfolio (approx. EUR 28m) Net write- 0.1% 0.1% 0.1% Stage 3 loans in PCB Ukraine at 4.8% offs Stage 3 In remaining ProCredit banks, share of Stage 3 loans slightly loans 46.9% 49.
Slide 23: Regulatory capital and risk-weighted assets
Regulatory capital and risk-weighted assets in EUR m Dec-21 Jun-22 ► Capital ratios well above regulatory capital requirements CET1 capital 792 847 (8.2% CET1 capital, 10.1% T1, 12.6% total capital) Additional Tier 1 capital 0 0 Tier 1 capital 792 847 ► CET1 capital includes profits of FY 2021 as we
Slide 24: Development of CET1 capital ratio (fully loaded)
Development of CET1 capital ratio (fully loaded) Q4-21 attributable profits of EUR 17.6m; reversal Currency appreciation mainly UAH, GEL and USD; of 2021 dividend accruals of EUR 20.7m limited pro-forma FX impact of 25% Hryvnia Loan portfolio growth of EUR adjustment (in Jul-22) of c. -3bps on CET1
Slide 25: Agenda
Agenda A Highlights B Group results C Segment performance D Asset quality and capital Q&A Appendix ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022
Slide 26: Q&A
Q&A Photovoltaic project financed by ProCredit Bulgaria
Slide 27: Agenda
Agenda A Highlights B Group results C Segment performance D Asset quality and capital Q&A Appendix ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022
Slide 28: ProCredit – A unique approach to banking
ProCredit – A unique approach to banking Summary Key figures H1 2022 and FY 2021 ► A profitable, development-oriented commercial group of banks Total assets Customer loan portfolio Deposit/loan with a focus on South Eastern and Eastern Europe EUR 8,386m EUR 6,294m 91% ► Headquartered in Frankfurt an
Slide 29: Overview of quarterly financial development
Overview of quarterly financial development In EUR m Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Net interest income 53.9 58.2 60.6 60.2 64.7 Net fee and commission income 12.1 13.0 13.8 12.6 13.7 Other operating income (net) 0.6 3.9 2.9 4.9 4.2 Operating income 66.6 75.1 77.4 77.7 82.5 Income Personnel
Slide 30: Segment South Eastern Europe
Segment South Eastern Europe Regional loan portfolio breakdown Key financial data Bosnia & Herzegovina (in EUR m) Q2 2021 Q2 2022 Albania 6% 6% Net interest income 61.9 71.6 Bulgaria Romania 31% 8% Net fee and commission income 15.3 16.8 Other operating income (net) 9.7 5.3 North Operating income 76
Slide 31: Segment Eastern Europe
Segment Eastern Europe Regional loan portfolio breakdown Key financial data Moldova (in EUR m) Q2 2021 Q2 2022 12% Net interest income 32.0 40.2 Net fee and commission income 3.4 3.4 Other operating income (net) 3.2 3.9 Georgia Operating income 37.8 47.5 30% Ukraine 58% Personnel expenses 6.1 8.5 Ad
Slide 32: Segment South America
Segment South America Regional loan portfolio breakdown Key financial data (in EUR m) Q2 2021 Q2 2022 Net interest income 9.0 12.4 Net fee and commission income -0.2 -0.1 Ecuador Other operating income (net) -0.6 -0.7 100% Operating income 8.2 11.6 Personnel expenses 2.7 3.2 Admininistrative expense
Slide 33: Development of green loan portfolio
Development of green loan portfolio Green loan portfolio growth ► Green loan portfolio amounting to EUR 1.2bn, representing 19.1% of total loan portfolio 12.6% 15.4% 16.6% 18.7% 19.0% 19.1% 1,128 1,202 Q2-22 growth of EUR 51m, representing approx. 20% of 47 985 36 overall loan portfolio growth 21
Slide 34: Structure of the loan portfolio by exposure and currency
Structure of the loan portfolio by exposure and currency Loan portfolio by exposure Loan portfolio by currency 7% 33% 19% 37% 51% 15% 12% 26% < 50k 50-250k 250-500k 500k-1.5m >1.5m EUR USD Other currencies ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022 33
Slide 35: Structure of collateral
Structure of collateral Collateral by type (FY 2021) ► Majority of collateral consists of mortgages ► Growing share of financial guarantees mainly as a result of InnovFin and other guarantee programmes provided by the 24% European Investment Fund ► Clear, strict requirements for types of acceptable
Slide 36: Funding and rating
Funding and rating Funding sources overview ► Highly diversified funding structure and counterparties 4% 1%1% ► Customer deposits main funding source, accounting for 76%, 18% supplemented by long-term funding from IFIs and institutional Customer deposits investors Liabilities to banks Debt securitie
Slide 37: Liquidity update
Liquidity update Liquidity coverage ratio ► HLA in Q2 slightly decreased, primarily driven by seasonal development of deposits and loans and net repayments of external funding 142% 151% 146% 100% 100% 100% ► Moderate reduction in liquidity at PCB Ukraine during the first weeks of the war, since then
Slide 38: Asset reconciliation
Asset reconciliation 10% Other assets Cash and cash 17% equivalents 73% Net loans to (in EUR m) customers ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022 37
Slide 39: Liabilities and equity reconciliation
Liabilities and equity reconciliation Liabilities to 16% banks and IFIs Liabilities to customers 68% (in EUR m) Debt 3% securities Other liabilities 1% 10% Equity ProCredit Group | Q2 2022 results | Frankfurt am Main, 11 August 2022 38
Slide 40: Balance sheet
Balance sheet in EUR m Dec-21 Jun-22 Assets Cash and central bank balances 1,546 1,444 Loans and advances to banks 253 232 Investment securities 410 364 Loans and advances to customers 5,924 6,294 Loss allowance for loans to customers -131 -187 Derivative financial assets 1 10 Property, plant and eq
Slide 41: Income statement by segment
Income statement by segment 01.01.- 30.06.2022 South Eastern Germany Eastern Europe South America Consolidation Group (in EUR m) Europe Interest and similar income 11.2 67.4 86.6 21.1 -10.5 175.9 of which inter-segment 10.2 0.2 0.2 0.0 0.0 0.0 Interest and similar expenses 10.6 27.2 15.0 8.7 -10.5 5
Slide 42: Explanatory note on performance indicators and ratios
Explanatory note on performance indicators and ratios The ProCredit group uses an integrated system of indicators to monitor The group also considers the following additional indicators: and manage the implementation and further development of the group’s business and risk strategy: The ratio of c
Slide 43: Contact Investor Relations
Contact Investor Relations Financial calendar (continuously updated on IR Website) Date Place Event information 11.08.2022 Interim Report as of 30 June 2022 10.11.2022 Quarterly Financial Report as of 30 September 2022 Investor Relations Media Relations ProCredit Holding AG & Co. KGaA ProCredit Hold
Slide 44: Disclaimer
Disclaimer The material in this presentation and further supporting documents have been This presentation and further supporting documents may contain forward- prepared by ProCredit Holding AG & Co. KGaA, Frankfurt am Main, Federal looking statements including statements regarding our intent, belief