Slide 1: Q4 2022 / FY 2022 results
Hubert Spechtenhauser, Chairman of the Management Board Christian Dagrosa, CFO and member of the Management Board Q4 2022 / FY 2022 results Frankfurt am Main, March 2023 (updated as of 14th February 2024)
Slide 2: Agenda
A. Highlights and business update B. Group results C. Regional performance D. Outlook ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 1
Slide 3: Highlights FY 2022
Highlights FY 2022 Resilient 2022 result driven by strong income development in all group banks except for operations in Ukraine EUR 16.5m ► Group result of EUR 16.5m (RoE 1.9%) overall muted due to provisions for Ukraine (EUR 86.7m) group result, EUR 68.3m ► Operating income increases by more than
Slide 4: 2022 sustainability highlights and developments
2022 sustainability highlights and developments Preferred partner for Enhanced trainings LATEST ACHIEVEMENTS thematic on E&S topics external events Developing Introduction of tools to facilitate Target achieved: Promoting and animal welfare Member of the NZBA ESG impacts and communicating E&S assess
Slide 5: FY 2022 results versus updated guidance
FY 2022 results versus updated guidance Updated guidance Actual FY 2022 FY 2022 Medium single digit percentage growth1 4.0% (fx adjusted) ► Growth of the loan portfolio Previous: High single digit percentage growth 1 (6.9% group w/o Ukraine) Substantially below the level of 2021 1.9% ► Return on equ
Slide 6: Continued strong growth in customer loans
Continued strong growth in customer loans Loan portfolio growth ► Customer loan growth in FY-22 of EUR 183m or 3.1% +3.1% YoY (4.0% FX-adj) -2.9% QoQ ▪ Growth without Ukraine of EUR 358m or 6.9% 6,292 6,108 5,924 5,254 1,241 ▪ Portfolio reduction in Ukraine of EUR 174m due to ongoing 1,128 1,231 985
Slide 7: Good deposit development through digital banking channels
Good deposit development through digital banking channels Deposit growth ► YoY increase of EUR 748m (+13.5%) based on strong client +13.5% YoY relationships and further growing appeal of digital approach +5.1% QoQ 5,984 6,290 ▪ Strong growth YoY in all three categories: current account, 5,542 saving
Slide 8: Positive expected GDP development in SEE/EE despite more difficult overall environment
Positive expected GDP development in SEE/EE despite more difficult overall environment GDP outlook for SEE/EE remains intact, Euro area lower Macroeconomic environment / key current themes SEE/EE, excluding Ukraine(1) Euro area • Still ongoing with significant human and economic losses in War on Ukr
Slide 9: Agenda
A. Highlights and business update B. Group results C. Regional performance D. Outlook ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 8
Slide 10: Operating income and expense overview
Operating income and expense overview Operating income ► Strong increase in full year operating income yoy by c. 21%, driven by all income streams 339.8 281.9 93.2 ► Net interest income the most significant driver behind the 77.4 increase (in EUR m) ▪ NII development driven mostly by higher base rat
Slide 11: Net interest income
80.0 72.6 2.7% 2.7% 70.0 67.2 64.7 2.5% 12.6 60.6 60.2 60.0 9.5 Net interest income 11.9 11.6 11.2 2.0% 50.0 Quarterly development ► Q4-22 NII increased EUR 5.4m or 8.0% vs. Q3-22 to EUR 40.0 1.5% 72.6m, well above all previous quarters and with positive 3.0% 3.1% 3.2% 3.3% 2.9% 3.0% momentum 2.9% 3
Slide 12: Net fee and commission income
70.0 60.0 Net fee and commission income 50.0 Quarterly development 40.0 ► Q4-22 net fee and commission income of EUR 14.5m, 3.5% or 14.5 EUR 0.5m above Q3-22 14.0 30.0 13.8 13.7 12.6 1.3 1.2 1.2 1.8 ▪ Against Q4-21, net fee and commission income shows (in EUR m) 1.3 20.0 14.5 increase of EUR 0.7m or
Slide 13: Personnel and administrative expenses
61.0% 61.9% 61.9% 59.1% 61.0% 59.1% 67.7 60.0% 70.0 60.0% 60.0 50.0% 53.2 53.5 50.3 60.0 53.2 50.0 53.5 45.9 50.0% Personnel 38.5 40.0% and administrative expenses 50.3 50.0 45.9 40.0 27.2 38.5 40.0% 27.9 26.7 Quarterly development 22.6 30.0% 40.0 27.2 68.7% 27.9 ► Q4-22 cost-income ratio of 72.6% i
Slide 14: Loss allowance
.0 70 .0 60 .0 50 Loss allowance .0 40 35.6 35.6 Quarterly development ► Q4-22 loan loss provisioning expenses at EUR 25.4m, driven .0 22 bps 238 bps 141 bps 30 139 bps 164 bps by provisions for Ukrainian portfolio and additional management 25.4 25.4 21.7 21.8 21.7 overlays to account for macroecono
Slide 15: Loan portfolio quality
Loan portfolio quality Loan portfolio by geography Net-write offs (annualised) Ecuador Germany 0.1% 0.1% 0.1% 0.1% 0.2% 1% Moldova8% Bulgaria 3% 23% Georgia 7% Stage 2 Ukraine 9% Albania Serbia 4% 15% Bosnia 5% Romania 6% Macedonia Kosovo 8% 11% Loan portfolio by sector Stage 3 and coverage ratio In
Slide 16: Regulatory capital, risk-weighted assets, capital ratios
Regulatory capital, risk-weighted assets, capital ratios Capitalisation overview ► Capital ratios well above regulatory capital requirements in EUR m Dec-21 Dec-22 (8.3% CET1 capital, 10.2% T1, 12.7% total capital) CET1 capital 792 820 Additional Tier 1 capital 0 0 ► CET1 capital includes profits of
Slide 17: Agenda
A. Highlights and business update B. Group results C. Regional performance D. Outlook ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 16
Slide 18: Contribution of regional segments to group net income (FY 22)
Contribution of regional segments to group net income (FY 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 54m loan portfolio; EUR 264m deposits)
Slide 19: Segment South Eastern Europe
Segment South Eastern Europe Segment key financials SEE Individual bank development (FY-22) Operating income (€m) Cost-income ratio Country Profit after tax (€m) Cost-income Return on ratio equity +21% -6.1pp Kosovo 20.7 49% 22% 201.4 63.9% 166.4 57.8% Bulgaria 19.5 50% 10% FY-21 FY-22 FY-21 FY-22 S
Slide 20: Segment Eastern Europe
Segment Eastern Europe Segment key financials EE Individual bank development (FY-22) Operating income (€m) Cost-income ratio Country Profit after tax (€m) Cost-income Return on +21% ratio equity -2.5pp +46% 145.6 Georgia 14.0 48% 16% 120.3 50.0 51.5% 51.1% 49.0% 99.7 45.5% 20.0 83.8 48.9 Moldova 5.6
Slide 21: Update on ProCredit Bank Ukraine
Update on ProCredit Bank Ukraine Current status of operations Regional risk classification ► Safety of staff: Out of 307 staff (329 at the start of the year), 11 are mobilized ► Banking operations basically uninterrupted since beginning of the war: Branch network is operating; employees largely work
Slide 22: Agenda
A. Highlights and business update B. Group results C. Regional performance D. Outlook ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 21
Slide 23: Strong track record of delivering on guidance
Strong track record of delivering on guidance Delivery on guidance Good operational progress and enhanced strategic priorities in past years driving update of group medium-term outlook FY 2017 ✓ Medium-term targets (previous) Management assessment / key milestones achieved FY 2018 ✓ ~10% loan portfo
Slide 24: Outlook FY 2023
Outlook FY 2023 FY 2023 outlook for ProCredit group Medium single digit percentage growth ► Growth of the loan portfolio (FX adjusted) 6.0 – 8.0% ► Return on equity (RoE) (based on up to 70bps cost of risk) On FY 2022 level ► Cost-income ratio (CIR) (with margin of +/- 1 ppt) ► CET1 ratio and levera
Slide 25: Medium-term outlook with enhanced profitability level
Medium-term outlook with enhanced profitability level Medium-term outlook for ProCredit group ► Growth of the loan portfolio Medium to high single digit percentage growth p.a. ~12% ► Return on equity (RoE) (based on 25 – 30 bps risk cost over the cycle) ~57% ► Cost-income ratio (CIR) (without one-of
Slide 26: Q&A
Q&A Photovoltaic project financed by ProCredit Bulgaria
Slide 27: 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 | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 26
Slide 28: Sustainability commitment firmly integrated in the business model
Sustainability commitment firmly integrated in the business model – Impact report 2022 published Impact through Environmental Comprehensive staff business responsibility development ► Supporting SMEs through the cycle ► Green loan portfolio > €1.2bn, avg. ► High diversity, gender parity growth 13% p
Slide 29: 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 | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 28
Slide 30: Q4 2022 results at a glance
Q4 2022 results at a glance In EUR m Q4-2021 Q4-2022 FY-2021 FY-2022 Y-o-Y Net interest income 60.6 72.6 222.0 264.6 42.6 Net fee and commission income 13.8 14.5 50.9 54.7 3.9 Other operating income (net) 2.9 6.2 9.0 20.5 11.5 Operating income 77.4 93.2 281.9 339.8 58.0 Income Personnel expenses 26.
Slide 31: Overview of quarterly financial development
Overview of quarterly financial development In EUR m Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Net interest income 60.6 60.2 64.7 67.2 72.6 Net fee and commission income 13.8 12.6 13.7 14.0 14.5 Other operating income (net) 2.9 4.9 4.2 5.2 6.2 Operating income 77.4 77.7 82.5 86.4 93.2 Income statement
Slide 32: Balance sheet
Balance sheet in EUR m Dec-21 Dec-22 Assets Cash and central bank balances 1,546 1,940 Loans and advances to banks 253 280 Investment securities 410 480 Loans and advances to customers 5,924 6,108 Loss allowance for loans to customers -131 -215 Derivative financial assets 1 13 Property, plant and eq
Slide 33: Asset reconciliation
Asset reconciliation 11% 22% Other assets Cash and cash equivalents 67% Net loans to (in EUR m) customers ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 32
Slide 34: Liabilities and equity reconciliation
Liabilities and equity reconciliation Liabilities 15% to banks Liabilities to customers 71% (in EUR m) Other liabilities 1% 2% Equity 10% ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 33
Slide 35: 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 | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 34
Slide 36: Structure of the loan portfolio
Structure of the loan portfolio Loan portfolio by geographical segments Loan portfolio by sector Investment and other consumer Germany loans Ecuador 1% Housing 2% 8% Moldova 7% Bulgaria Other economic Wholesale and 3% activities retail trade 23% 7% 25% Georgia 7% Hotel, restaurant and catering 3% Co
Slide 37: 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% 35% 53% 14% 12% 27% EUR USD Other Currencies < 50k 50-250k 250-500k 500k-1.5m >1.5m ProCredit Group | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 36
Slide 38: Development of green loan portfolio
Development of green loan portfolio Green loan portfolio growth ► Green loan portfolio amounting to EUR 1.2bn, representing 15,4% 16,6% 18,7% 19,0% 20,2% 20.2% of total loan portfolio 1.231 1.128 54 ► Includes financing of investments in: 985 36 795 21 • Energy efficiency 678 17 15 • Renewable energ
Slide 39: Structure of collateral
Structure of collateral Collateral by type (FY 2022) ► Majority of collateral consists of mortgages ► Growing share of financial guarantees mainly as a result of InnovFin and other guarantee programmes provided by the European Investment Fund ► Clear, strict requirements for types of acceptable coll
Slide 40: 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 | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 39
Slide 41: Income statement by segment
Income statement by segment South Eastern 01.01.- 31.12.2022 (in EUR m) Germany Eastern Europe South America Consolidation Group Europe Interest and similar income 26.1 145.8 191.3 45.8 -24.7 384.3 of which inter-segment 21.0 1.9 0.8 0.0 0.0 0.0 Interest and similar expenses 24.6 62.4 37.0 20.3 -24.
Slide 42: Segment South Eastern Europe
Segment South Eastern Europe Regional loan portfolio breakdown Key financial data Bosnia & Albania Herzegovina 6% (in EUR m) FY 2021 FY 2022 6% Net interest income 130.1 154.4 Romania Bulgaria 8% 33% Net fee and commission income 31.8 35.1 Other operating income (net) 4.6 12.0 North Macedonia Operat
Slide 43: Segment Eastern Europe
Segment Eastern Europe Regional loan portfolio breakdown Key financial data Moldova 15% (in EUR m) FY 2021 FY 2022 Net interest income 71.3 83.4 Net fee and commission income 7.8 6.7 Other operating income (net) 4.7 9.6 Ukraine 50% Operating income 83.8 99.7 Personnel expenses 13.4 16.7 Georgia 35%
Slide 44: Segment South America
Segment South America Regional loan portfolio breakdown Key financial data (in EUR m) FY 2021 FY 2022 Net interest income 20.2 25.5 Net fee and commission income -0.4 0.2 Other operating income (net) -1.0 -1.6 Operating income 18.8 24.1 Personnel expenses 5.9 7.4 Admininistrative expenses 10.9 12.6
Slide 45: Key figures per ProCredit bank (as per FY 2022)
Key figures per ProCredit bank (as per FY 2022) North Bosnia & Country Bulgaria Serbia Kosovo Romania Macedonia Herzegovina Customer loan portfolio (EUR m) 1,431 928 675 474 351 285 Change in customer loan portfolio (%) 17.1% -7.4% 14.4% 2.8% -2.0% 7.0% Credit impaired loans (Stage 3) 1.0% 2.5% 2.0%
Slide 46: ProCredit SEE/EE countries of operation in focus
ProCredit SEE/EE countries of operation in focus North Selected metrics per country Bulgaria Serbia Kosovo Romania Macedonia Real GDP growth 2023E 3.0% 2.7% 3.5% 3.0% 3.1% 2024 – 26E 3.2% 4.0% 3.8% 3.8% 3.6% CPI inflation 2023E 5.2% 8.3% 5.0% 4.5% 11.0% 2024 – 26E 2.1% 3.6% 2.2% 2.2% 3.1% Country /
Slide 47: 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 | Q4 / FY 2022 results | Frankfurt am Main, 23 March 2023 46
Slide 48: Regulatory capital and risk-weighted assets
Regulatory capital and risk-weighted assets in EUR m Dec-21 Dec-22 ► Capital ratios well above regulatory capital requirements (8.3% CET1 capital, 10.2% T1, 12.7% total capital) CET1 capital 792 820 Additional Tier 1 capital 0 0 ► CET1 capital includes profits of FY 2021 as well as reversal of divid
Slide 49: Funding, rating and liquidity
Funding, rating and liquidity Funding sources Deposit-to-loan ratio development Rating BBB (stable) ProCredit Holding rating by Fitch, last affirmed on 27 September 2022 Total liabilities: EUR 8.0 bn Liquidity coverage ratio Highly liquid assets (HLA) and HLA ratio (in EUR bn) ProCredit Group | Q4 /
Slide 50: 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 share of credit-impaired loans(7) is the most significant indicator to and manage the implementation and further development of the group’s assess portfolio quality busi
Slide 51: Contact Investor Relations
Contact Investor Relations Financial calendar (continuously updated on IR Website) Date Location Event information 24.03.2023 Frankfurt/ Main Analyst Workshop, 10:00 CET 15.05.2023 Quarterly Financial Report as of 31 March 2023, 16:00 CEST Analyst Call 16.05. -17.05.2023 Frankfurt/ Main Equity Forum
Slide 52: 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