DGAP-News

ProCredit Holding AG & Co. KGaA: ProCredit reports strong financial results and good growth figures as at 30 September 2021, underscoring its sustainable business model - Seite 2

The portfolio growth of EUR 549 million or 10.4% surpassed the growth figures of the previous year (9M 2020: EUR +408 million or 8.5%), with appreciation in the value of national currencies contributing approximately EUR 100 million to this development. The green loan portfolio, which includes targeted lending for environmentally sound investments, also showed strong growth of 11.7% year to date in 2021.

Customer deposits increased by EUR 373 million or 7.6% (9M 2020: EUR +384 million or +8.9%). Most of the growth came from sight and overnight deposits with low interest rates, serving to further improve the group's refinancing structure and positively impacting the net interest margin.

"The group financial and business results are very promising," says ProCredit Management. "We see our SME clients across our South Eastern and Eastern European markets emerging relatively strongly from the pandemic. We are encouraged that investments in green technologies remains our fastest growing segment. Now more than ever there is awareness that emerging markets need to develop economically without driving climate change and biodiversity loss. Thanks to our comprehensive approach towards credit risk, which also considers the environmental and social impact of our clients, we feel very well-placed to continue to support SMEs to make this transition. The good financial results are particularly pleasing in this respect, because they show more than ever that financial success is well compatible with sustainable action."

Improved earnings, low risk expenses and further efficiency gains lift return on equity to over 10%

The consolidated profit of EUR 62.0 million translates into a significantly improved return on equity of 10.1% compared to the previous year (9M 2020: EUR 33.4 million or 5.6%). For the third quarter of 2021, RoE was in fact 12.3%. An improvement in the profitability of all regional segments, which can be attributed to the improved earnings situation of banks that had been less profitable in the past, contributed to the 86% increase in the consolidated result. All ProCredit banks posted positive results as at 30 September 2021. At the ProCredit group's Capital Markets Day on 12 October 2021, the Management Board outlined their expectation that in the next two years group profitability should consolidate around the mid-term target level now being achieved through continual scaling effects.