EQS-News

ProCredit group finishes 2023 with a strong business and financial performance; RoE guidance achieved - Seite 2

 

The group’s loan portfolio grew by EUR 119 million or 1.9% (2022: EUR +183 million or 3.1%), which includes a further reduction in Ukraine of EUR 85 million. Deposits grew by a strong EUR 965 million or 15.3% (2022: EUR +748 million or 13.5%), to which private individuals contributed approximately 50%.

 

Strong income development and increased cost efficiency

 

The group’s operating income increased for a second consecutive year by more than 20%, growing EUR 72.7 million or 21.4% compared to 2022 up to EUR 412.5 million (2022: EUR 339.8 million). This positive development is driven by higher net interest income, net fee and commission income, and income from foreign currency transactions. All ProCredit banks in South Eastern and Eastern Europe reported positive results, with most showing strongly improved or steady good levels of profitability and cost efficiency compared to the previous year.

 

Net interest income grew by EUR 72.6 million or 27.4% to EUR 337.2 million (2022: EUR 264.6 million). The net interest margin widened by 53 basis points to 3.6% as a result of largely stable lending margins and higher key interest rates. In Q4, the net interest margin amounted to 3.8%.

 

At EUR 57.5 million, net fee and commission income was 5.1% above the level recorded in the previous year (2022: EUR 54.7 million). Income from transaction and card business developed particularly positively. Net other operating income contributed EUR 17.8 million to the overall result (2022: EUR 20.5 million). The result from foreign exchange transactions, which is included in this line item, showed a good increase of EUR 4.1 million or 17.2%. In the last quarter of 2023, additional tax charges of approximately EUR 10 million were booked for the bank in Ukraine as a result of a newly introduced one-time bank tax.

 

Personnel and administrative expenses grew by EUR 29.6 million or 13.6%. This increase was mainly due to higher costs for staff, IT and marketing. The cost-income ratio improved visibly by 4.1 percentage points to a good level of 59.9% (2022: 64.0%).