EQS-News

ProCredit with strong Q1 result and good start into the year - Seite 2

The group’s loan portfolio grew by EUR 187 million or 3.0% in the first quarter of the year (Q1 2023: -0.8%), reflecting strong and renewed investment appetite among MSMEs and private clients in our markets. Outside Ukraine, the growth rate was even stronger at around 4.0%. In Ukraine, the portfolio declined by EUR 42 million due to higher than expected repayments and early repayments. Similarly, deposits displayed a marked increase of EUR 200 million or 2.8% (Q1 2023: 0.6%); this was attributable in particular to private clients and demonstrates the continued and growing success of ProCredit’s direct banking approach. Compared to the previous year’s period, the deposit-to-loan ratio increased by around 12 percentage points to a good level of 116% (Q1 2023: 104%).

Strong result based on good margin, stable loan portfolio quality and low cost of risk

The group’s Q1 result of EUR 33.5 million is 13.8% above the same period in the previous year (Q1 2023: EUR 29.5 million) and corresponds to a return on equity of 13.4% (Q1 2023: 13.3%).

The group’s operating income increased by 14.3%, driven primarily by higher net interest income. Net interest income increased by EUR 14.6 million or 19.4% to EUR 90.1 million (Q1 2023: EUR 75.4 million), with the net interest margin widening by around 25 basis points year-on-year to 3.7%.

Net fee and commission income increased slightly by 0.6% to EUR 14.1 million (Q1 2023: EUR 14.0 million). With EUR 3.0 million, the other income positions contributed less to operating income than in the previous year’s period (Q1 2023: EUR 4.3 million); the decline is mainly attributable to non-recurring effects.

Overall, the group’s operating income improved by EUR 13.4 million, while personnel and administrative expenses increased by EUR 10.2 million. The cost-income ratio increased by 2.1 percentage points to 61.7% (Q1 2023: 59.7%). As underlying cost discipline remained strict, the cost increases during the period were mainly a function of increased staff numbers and successfully executed investments in IT and marketing, in line with the updated group business strategy presented at the group’s Capital Markets Day in March 2024.