EQS-News

ProCredit Management Board presents updated business strategy for a broadened ProCredit footprint on its second Capital Markets Day - Seite 2

“We want to firmly position ourselves as the leading bank for MSMEs in our region and build a strong reputation as an attractive bank for private individuals. By playing on our inherent strengths and strengthening our brand as a universal bank for both MSMEs and private individuals, in the coming years we want to reach a portfolio size of more than EUR 10bn and more than double the number of our clients. On this path we feel comfortable committing ourselves to delivering a return on equity of around 13%-14% in the medium term and believe we can significantly amplify the positive impact of our operations on the societies and economies of the countries in which we are present,” elaborated Hubert Spechtenhauser, chairperson of the management board of ProCredit Holding AG.

High growth ambitions with SMEs plus strong and focused efforts in the retail and micro segments

The Management Board presented its plans to accelerate loan portfolio growth and return to the good growth figures the group achieved in the years before the war in Ukraine, targeting a medium-term loan portfolio of above EUR 10bn. This growth is to be solely self-funded through local deposits from private individuals and MSMEs. In light of the heightened geopolitical tensions for example between Serbia and Kosovo, the Management Board views ProCredit’s mandate in the region and its “Hausbank for MSMEs” concept as more relevant than ever, as the economic and political convergence of Eastern and Western Europe is essential for long-term peace and prosperity on the continent.

Capital Markets Day 2024, Hubert Spechtenhauser, Chair of the Management Board of ProCredit Holding AG

To accelerate growth in the MSME segment, the group intends to build on its strong market position, but will also significantly strengthen internal capacities, optimise lending processes, and further broaden the availability of services tailored to MSMEs. Moreover, in some countries of operation, the group plans to open new regional offices to better serve MSMEs also outside the major economic hubs. The Management Board has in particular identified potential for increased growth among smaller SMEs with a funding demand of up to EUR 750,000, which will sustainably fortify the group’s performance indicators through higher margins, lower risk weighting, and stronger customer retention thanks to ProCredit’s “Hausbank” approach.