Procredit Holding Ag · XETR:PCZ
Procredit — FY 2024 Earnings Presentation
51 slides from Procredit's earnings presentation, Mar 27, 2025
Slide 1: FY / Q4 2024 results
Hubert Spechtenhauser, Chairman of the Management Board Christian Dagrosa, CFO and member of the Management Board FY / Q4 2024 results Frankfurt am Main, March 2025
Slide 2: Highlights and business update; Group results
A. Highlights and business update B. Group results ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 1
Slide 3: 2024: Strategy execution well underway
2024: Strategy execution well underway Record loan growth, particularly driven by lower-volume segments and ProCredit banks, as well as highest ever deposit inflow further increasing our business and impact footprint Significant level of strategic investments in growth catalysts successfully underta
Slide 4: FY 2024 results at a glance
FY 2024 results at a glance Updated FY 2024 guidance 2024 12.6% Loan portfolio growth Above 10% (Group w/o SA: 13.7%) 10.2% Return on equity Around 10% (Group w/o SA: 11.2%) 68.1% Cost-income ratio Around 66% (Group w/o SA: 65.0%) > 13.0% CET1 ratio, CET1 ratio and leverage ratio 13.1% and 8.4% c. 9
Slide 5: Delivering on strategic priorities laid out at Capital Markets Day
Delivering on strategic priorities laid out at Capital Markets Day 2024: significant step on our growth trajectory Balance sheet transformation underway • New strategy communicated at Capital Markets Day in Mar-24, Strong growth metrics in FY-24 ✓ positioning ProCredit as 12.6% 14.3% +5,000 Universa
Slide 6: Strong execution of investments in growth catalysts
Strong execution of investments in growth catalysts In line with business strategy, short-term increasing C/I ratio People and training Modern branch network State-of-the-art technology Marketing & communication +19% +6 +27% +21% staff increase new branches IT expenses marketing expenses +738 +41 +3
Slide 7: Impact at ProCredit today
Impact at ProCredit today Fostering economic growth, environmental protection and social progress Economic Environmental Social ~200k 62% ~20% Net-zero Extensive ~20% jobs supported of our business green loans for SBTi(2) commitment of our loan by our MSME loans for renewable energy & to net-zero tr
Slide 8: Macro outlook for the region
Macro outlook for the region Positive growth outlook and increased international focus on SEE/EE GDP outlook for SEE/EE well above Euro area Macroeconomic environment / key current themes • Strong growth outlook and resilience of SEE/EE region 2025 2026 2027 - 29 • GDP outlook of around 3.5 – 4.0% p
Slide 9: Outlook FY 2025
Outlook FY 2025 Continued strong focus on strategy execution FY 2025 outlook Around 12% ► Growth of the loan portfolio Assuming no significant FX volatility Around 10% ► Return on equity (RoE) Based on continued low cost of risk Around FY-24 level ► Cost-income ratio (CIR) Due to further strong inve
Slide 10: ProCredit's medium-term ambitions
ProCredit’s medium-term ambitions Medium-term guidance Target operating model >€10bn loan portfolio (based on significant growth Leading bank for MSMEs in our region in # of clients) Return on equity ~13-14% (w/o ~1.5pp upside potential Attractive bank for private clients with superior customer expe
Slide 11: Group results
A. Highlights and business update B. Group results ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 10
Slide 12: Strong portfolio growth driven by all client segments
Strong portfolio growth driven by all client segments Loan portfolio growth ► Customer loans increase by EUR 784m or 12.6%, underscoring group strategy for strong and granular growth 12.6% YoY ▪ ~65% of growth from lower-volume segments (Micro, Small 3.3% QoQ and Private Clients) with higher average
Slide 13: Strong deposit development through digital banking channels
Strong deposit development through digital banking channels Deposit growth ► Customer deposits grow by EUR 1.0bn or 14.3% 14.3% YoY ▪ Share of deposits from private clients grows by 1.3pp, 6.0% QoQ demonstrating good progress of ProCredit’s direct banking strategy 7,821 8,291 Private 7,254 clients 6
Slide 14: Operating income and expense overview
Operating income and expense overview Operating income ► Good increase in operating income yoy by EUR 31.8m or 7.7%, 7.7% 2.0% to EUR 444.3m 444.3 412.5 ▪ Net interest income increases by 6%, though declining policy rates represent headwind for net margins (in EUR m) (in EUR m) 111.4 113.6 ▪ Net fee
Slide 15: Net interest income
Net interest income Quarterly development ► Q4 NII at EUR 87.7m lower than in previous quarters 3.8% 3.7% 3.6% 3.5% 3.3% ▪ Volume-driven increases in income from customer loans (EUR 2.1m qoq) offset by lower income from cash and cash equivalents (EUR 3.1m qoq) as lower policy rates led to re- pricin
Slide 16: Net fee and commission income
Net fee and commission income Quarterly development ► Q4 net fee and commission income of EUR 15.2m ▪ Increase of EUR 0.9m or 6.2% ► Net fee and commission income up YoY by EUR 1.6m or 2.9% 14.3 14.1 15.3 14.7 15.2 ▪ Income from payment services grows EUR 2.6m or 9.7%, (in EUR m) with additional pos
Slide 17: Personnel and administrative expenses
Personnel and administrative expenses Quarterly development ► Q4 personnel and administrative expenses of EUR 85.6m 75.4% 85.0% 68.8% 62.9% 66.3% 75.0%▪ Costs related to strategic investments increasingly levelling; 61.7% 65.0% Q4 seasonal effects add to qoq increase in cost base 55.0% 45.2 45.0% 37
Slide 18: Loss allowance
Loss allowance Quarterly development ► Q4 loss allowance with net release of EUR 9.3m ▪ Recoveries from stage 3 loans and reduction in provisions for central bank balances major drivers 42 bps 2 bps 33 bps -10 bps -54 bps ▪ Management overlays with organic increase qoq due to loan (in EUR m) growth
Slide 19: Loan portfolio quality
Loan portfolio quality Loan portfolio by geography Net-write offs (annualised) Germany Ecuador 1% 0.0% 0.2% 0.2% Moldova 7% 0.5% 0.2% Bulgaria 3% 19% Georgia 6% Ukraine 7% Serbia Stage 2 Albania 5% 14% 9.2% 8.6% 8.1% 8.2% 8.1% Bosnia & Herzegovina 5% Kosovo Greece 1 13% 6% Romania Macedonia 6% 8% Q4
Slide 20: Contribution of regional segments to group net profit
Contribution of regional segments to group net profit 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 39m loan portfolio; EUR 261m deposits) 37.9 -37.
Slide 21: Update on ProCredit Bank Ukraine
Update on ProCredit Bank Ukraine ProCredit Holding increases capital of ProCredit Bank Ukraine by EUR 20m UPDATE UKRAINE Insured by the Federal Government of Germany and resulting in strengthened positioning for any potential upside scenario Summary and key considerations: Successful de-risking sinc
Slide 22: Regulatory capital, risk-weighted assets, capital ratios
Regulatory capital, risk-weighted assets, capital ratios Capitalisation overview ► CET1 ratio at 13.1%, not yet considering recognition of in EUR m Dec-23 Dec-24 H2-24 result CET1 capital 885 933 ▪ Capital ratios well above regulatory capital Additional Tier 1 capital 0 0 requirements1 of 9.4% CET1,
Slide 23: Q&A
Q&A ProCredit Academy, Fürth-Weschnitz, Germany 22
Slide 24: Appendix
Appendix A. Impact reporting B. P&L and balance sheet C. Loan portfolio D. Information on segment and bank level E. Capital, liquidity and other information ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 23
Slide 25: 2024 sustainability highlights
2024 sustainability highlights INTERNAL DECARBONIZATION BUSINESS LOAN JOBS SUPPORTED EMPLOYEES ENVIRONMENTAL CLIENTS THROUGH OUR INDICATORS BUSINESS CLIENTS 37,690 total number of 61% 10,143 business loan clients 4,689 total number of employees electric and hybrid plug-in cars in vehicle fleet total
Slide 26: Strong impact track record over the decades
Strong impact track record over the decades Network of Opening of the EV CHARGING Establishment of Published OUR RESPONSE ProCredit academies STATIONS installed ProCredit as a ON FORCED LABOUR ALLEGATIONS related to First DEI STRATEGY BANKING GROUP GREEN LOANS Joined the photovoltaic panel productio
Slide 27: Impact in ProCredit today
Impact in ProCredit today KPI: Jobs ~200k jobs supported by our MSMEs Jobs and investment KPI: Investment 62% of our business lending goes to Social capital formation impact KPI: Gender Equity Diversity and ~20% of our loan clients are inclusion women owned MSMEs Sustainability at ProCredit Green en
Slide 28: Appendix
Appendix A. Impact reporting B. P&L and balance sheet C. Loan portfolio D. Information on segment and bank level E. Capital, liquidity and other information ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 27
Slide 29: FY 2024 results at a glance
FY 2024 results at a glance In EUR m Q4-23 Q4-24 FY-23 FY-24 Y-o-Y Net interest income 92.6 87.7 337.2 358.2 21.0 Net fee and commission income 14.3 15.2 57.5 59.2 1.6 Other operating income (net) 4.5 10.8 17.8 26.9 9.1 Operating income 111.4 113.6 412.5 444.3 31.8 Income Personnel expenses 32.9 40.
Slide 30: Overview of quarterly financial development
Overview of quarterly financial development In EUR m Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Net interest income 92.6 90.1 90.5 90.0 87.7 Net fee and commission income 14.3 14.1 15.3 14.7 15.2 Other operating income (net) 4.5 3.0 6.8 6.3 10.8 Operating income 111.4 107.2 112.6 111.0 113.6 Income Personnel exp
Slide 31: Balance sheet
Balance sheet in EUR m Dec-23 Dec-24 Assets Cash and central bank balances 2,348 2,164 Loans and advances to banks 372 514 Investment securities 751 966 Loans and advances to customers 6,226 7,010 Loss allowance for loans to customers -197 -182 Derivative financial assets 8 7 Property, plant and equ
Slide 32: Balance sheet development
Balance sheet development YTD asset development YTD liabilities and equity development 799 33 10,752 1,037 15 72 10,752 59 -181 171 9,749 9,749 (in EUR m) (in EUR m) Dec-23 Liquid assets Net loans to customers Other Dec-24 Dec-23 Liabilities to Liabilities to Debt securities and Other liabilities Eq
Slide 33: Appendix
Appendix A. Impact reporting B. P&L and balance sheet C. Loan portfolio D. Information on segment and bank level E. Capital, liquidity and other information ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 32
Slide 34: Structure of the loan portfolio by segment and currency
Structure of the loan portfolio by segment and currency Loan portfolio by segment Loan portfolio by currency 12% 3% 40% 49% 56% 29% 11% Medium Small Micro Private clients EUR USD Other Currencies ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 33
Slide 35: Development of green loan portfolio
Development of green loan portfolio Green loan portfolio growth ► Green loan portfolio amounting to EUR 1.3bn, representing close to 20% of total loan portfolio 15.4% 19.3% CAGR 2018-2023: 13% ► Includes financing of investments in: • Energy efficiency • Renewable energies 1,355 (in EUR m) • Other e
Slide 36: Structure of collateral
Structure of collateral Collateral by type (FY 2024) ► Majority of collateral consists of mortgages ► Significant share of financial guarantees mainly as a result of InnovFin and other guarantee programmes provided by the European Investment Fund 2% 15% ► Clear, strict requirements for types of acce
Slide 37: Appendix
Appendix A. Impact reporting B. P&L and balance sheet C. Loan portfolio D. Information on segment and bank level E. Capital, liquidity and other information ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 36
Slide 38: Income statement by segment
Income statement by segment South Eastern 01.01.- 31.12.2024 (in EUR m) Germany Eastern Europe South America Consolidation Group Europe Interest and similar income 60.9 167.6 346.4 55.0 -40.7 589.2 of which inter-segment 25.0 8.6 7.0 0.0 0.0 0.0 Interest and similar expenses 63.1 73.5 96.4 38.6 -40.
Slide 39: Segment South Eastern Europe
Segment South Eastern Europe Segment key financials SEE Individual bank development (FY-24) Operating income (€m) Cost-income ratio Country Profit after tax (€m) Cost-income Return on ratio equity +15% +2.0pp 305.3 56.4% Bulgaria 42.0 46.2% 20.0% 264.9 54.4% Kosovo 29.1 51.6% 23.2% Serbia 21.6 53.7%
Slide 40: Segment Eastern Europe
Segment Eastern Europe Segment key financials EE Individual bank development (FY-24) Operating income (€m) Cost-income ratio Country Profit after tax (€m) Cost-income Return on ratio equity +1% +10.6pp Ukraine 21.8 54.5% 40.3% 24.4% 111.7 112.6 43.9% Georgia 11.3 64.4% 10.7% Moldova 4.8 77.8% 9.5% F
Slide 41: Segment South Eastern Europe
Segment South Eastern Europe Regional loan portfolio breakdown Key financial data Albania 6% Bosnia & Herzeg. (in EUR m) FY-23 FY-24 7% Bulgaria 26% Net interest income 218.7 250.0 Greece1 8% Net fee and commission income 36.8 38.5 Romania 8% Other operating income (net) 9.4 16.8 Operating income 26
Slide 42: Segment Eastern Europe
Segment Eastern Europe Regional loan portfolio breakdown Key financial data Moldova 18% (in EUR m) FY-23 FY-24 Net interest income 95.9 94.1 Ukraine Net fee and commission income 7.0 6.4 43% Other operating income (net) 8.9 12.2 Operating income 111.7 112.6 Personnel expenses 18.8 21.2 Georgia 39% A
Slide 43: Segment South America
Segment South America Regional loan portfolio breakdown Key financial data (in EUR m) FY-23 FY-24 Net interest income 19.2 16.4 Net fee and commission income 0.2 0.6 Other operating income (net) 0.7 5.5 Ecuador 100% Operating income 20.1 22.5 Personnel expenses 8.1 10.2 Admininistrative expenses 12.
Slide 44: Key figures per ProCredit bank (as per FY-24)
Key figures per ProCredit bank (as per FY-24) North Bosnia & Country Bulgaria Serbia Kosovo Romania Macedonia Herzegovina Customer loan portfolio (EUR m) 1,771 980 881 555 424 353 Change in customer loan portfolio (%) 16.8% 7.9% 17.8% 9.3% 10.8% 18.5% Credit impaired loans (Stage 3) 1.1% 2.9% 1.2% 1
Slide 45: Key figures for ProCredit Bank Ukraine
Key figures for ProCredit Bank Ukraine Development since 2021, before Russian invasion in 2022 Quarterly KPI update Q3-24 Q4-24 (in EUR m) FY-21 FY-22 FY-23 FY-24 Staff information Selected financial indicators Number of staff 377 389 Loan portfolio 757 582 497 512 Change qoq % 8.6% 3.2% % of group
Slide 46: Appendix
Appendix A. Impact reporting B. P&L and balance sheet C. Loan portfolio D. Information on segment and bank level E. Capital, liquidity and other information ProCredit Group | FY / Q4 2024 results | Frankfurt am Main, 27 March 2025 45
Slide 47: ProCredit Holding AG successfully placed EUR 125m Green Tier 2 Bonds
Successful Tier 2 placement in Apr-24 supporting the group’s medium-term growth ambitions CASE STUDY ProCredit Holding AG successfully placed EUR 125m Green Tier 2 Bonds Summary of transaction: Main statistics: ► On 25-Apr-24, ProCredit Holding successfully placed green ISIN DE000A383C84 Tier 2 subo
Slide 48: Funding, rating and liquidity
Funding, rating and liquidity Funding sources Deposit-to-loan ratio development Rating 1% 3% 1% 117% 118% 10% Customer deposits BBB (stable) ProCredit Holding rating Liabilities to banks by Fitch, last affirmed on Debt securities 10 Dec 2024 Subordinated debt Other liabilities 85% Dec-23 Dec-24 Tota
Slide 49: 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 and ▪ The credit-impaired coverage ratio(8) gives insights into loss allowances for manage the implementation and further development of the group’s business credit-impaired l
Slide 50: Contact Investor Relations
Contact Investor Relations Financial calendar (continuously updated on IR Website) Date Location Event information 12.05.2025 Quarterly Report as of 31 March 2025 13.05. – 14.05.2025 Frankfurt/ Main Spring Conference 2025 04.06.2025 Frankfurt/ Main Annual General Meeting 14.08.2025 Interim Report as
Slide 51: 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, Frankfurt am Main, Federal Republic of looking statements, including statements regarding our intent, beli