DGAP-News

ProCredit group: significant improvement in result for first half of 2021 with continued strong growth

DGAP-News: ProCredit Holding AG & Co. KGaA / Key word(s): Half Year Results/Half Year Report ProCredit group: significant improvement in result for first half of 2021 with continued strong growth 12.08.2021 / 06:59 The issuer is solely responsible for the content of this announcement. ProCredit group: significant improvement in result for first half of 2021 with continued strong growth

- Growth in customer loans by 7.7% and in customer deposits by 2.5%

- Increase in profit after tax by 68%; consolidated result of EUR 36.4 million represents return on equity of 9.1%

- Decrease in provision expenses leads to annualised cost of risk of 10 basis points, with improvement in portfolio quality

- Increase in net interest income results in significant improvement of cost-income ratio to 64.4%

- As communicated in July, Management Board raises forecast for return on equity for 2021 to 8.0% - 9.5%

- First Capital Markets Day to be held virtually on 12 October 2021

Frankfurt am Main, 12 August 2021 - The ProCredit group, which is mainly active in South Eastern and Eastern Europe, reports strong results for the first half of 2021. The customer loan portfolio grew by EUR 402 million or 7.7%, once again reflecting the strong growth rates seen in previous periods (H1 2020: EUR +255 million or 5.3%). The consolidated result increased by 68% to EUR 36.4 million (H1 2020: EUR 21.7 million), representing a significantly improved return on equity of 9.1% (H1 2020: 5.5%). Based on the strong financial results for the first half of the year, on 23 July 2021 the Management Board raised its forecast for return on equity for the 2021 financial year to 8.0% - 9.5% (previously 6.0% - 7.5%).

ProCredit's management takes a positive view on the half-year results and prospects for the group: "We are pleased with these results and acknowledge how well our colleagues have been able to drive our business strategy forward under very difficult market conditions. Our key strengths continue to lie in the close relationships we cultivate with carefully selected clients, in our ability to manage credit risk effectively and in our highly digitalised business processes. As we begin to emerge from the COVID-19 pandemic, our SME clients, which are so important for sustainable economic recovery, are looking to the future with growing confidence. We believe that the ProCredit banks can play a central role in enabling the continued success of these clients. As such, we are strengthened in our belief that our sustainable approach, and not one based on the aggressive consumer lending which currently dominates our markets, is the right way to create meaningful impact in emerging economies and societies whilst generating sustainable returns for the ProCredit group."