- Customer loan portfolio grows by 12.3% to
EUR 4.4 billion in 2018, in line with expectations and significantly stronger
than in the previous year (2017: 8.0%) - Consolidated result for 2018 increases by
13.3% to EUR 54.5 million (2017: EUR 48.1 million) - Implementation of direct banking concept contributes
to a 13.9% increase in net fee and commission income to EUR 52.2 million (2017:
EUR 45.8 million) - Return on equity for 2018 increases within
the forecasted range to 7.6% (2017: 7.1%)
Frankfurt am Main, 27 March 2019 – The
ProCredit group, which includes its parent company ProCredit Holding and which
is mainly active in South Eastern and Eastern Europe, once again recorded a
successful financial year in 2018. The gross loan portfolio of the ProCredit
group grew by 12.3% or EUR 482 million to EUR 4.4 billion in the reporting
period (31 December 2017: EUR 3.9 billion; growth in 2017: 8% or EUR 281
million). The strong portfolio growth in 2018 underscores the successful
positioning of ProCredit banks as Hausbanks for dynamic small and medium-sized
enterprises (SMEs). The consolidated result improved by 13.3% to EUR 54.5
million in the past financial year (2017: EUR 48.1 million). The return on equity in 2018 stood at 7.6% (2017: 7.1%) and was thus
within the forecast range of 7.5% to 8.5%. The increase of 0.5 percentage points over the
previous year was achieved despite the significantly increased capital
base. The ProCredit group has thereby achieved
the acceleration in growth and increased profitability predicted for 2018.
The growth of the loan portfolio was
accompanied by a further improvement in portfolio quality. The share of
non-performing loans in the total loan portfolio fell in the course of 2018
from 4.5% as at 31 December 2017 to 3.1% as at 31 December 2018. The risk
coverage ratio for non-performing loans rose to 90.8% as of the balance sheet
date (31 December 2017: 84.6%).
Green loans, which the ProCredit banks provide
to support environmentally responsible investments, showed a positive
development with a growth rate of 38.5%, thus outpacing the growth of the total
loan portfolio. As at 31 December 2018, green loans accounted for 15.4%
of the overall loan portfolio (31 December 2017: 12.6%).
The direct banking concept for private
clients was fully implemented at all ProCredit banks in 2018 and is viewed as a
very positive development for clients and for the group, as it has enabled
significant cost savings. Furthermore, this development has helped to increase the
net fee and commission income by 13.9% or EUR 6.4 million to EUR 52.2 million,
which now represents 21% of total operating income. In 2018, the ProCredit
group raised its deposit volume by EUR 255 million to EUR 3.8 billion, despite having
streamlined its branch network.
The cost/income ratio improved by 3.4
percentage points in the financial year, falling to 70.2% from 73.6% in 2017.
Compared to the same period in the previous year, staff and administrative
expenses decreased by 8.0%, or EUR 14.9 million, to EUR 171.4 million.
The Common Equity Tier 1 capital ratio
(CET1 fully loaded) increased from 13.7% as at end-2017 to 14.4% as at 31
December 2018, thus exceeding 13% as expected. ProCredit Holding’s successful
capital increase carried out in February 2018 had a significant influence on
this ratio.
As in previous years, one third of the
group profit is to be distributed to the shareholders. Therefore, a dividend
payment of EUR 0.30 per share will be recommended at the Annual General Meeting
on 17 May 2019.
With the expansion of its business with
SMEs, the ProCredit group continues to focus on the development impact of its
own activities. In terms of non-financial performance, the group makes a firm
commitment to contribute to the UN Sustainable Development Goals (SDGs), as
outlined in its comprehensive 2018 Impact Report published today. In the medium
term, this includes increasing the share of green loans in the total loan
portfolio to 20% and ensuring that the operations of the ProCredit group are CO2-neutral.
The ProCredit group also intends to invest in additional staff training in
order to further strengthen its already high level of social and environmental
responsibility as an essential pillar of responsible banking.
The gross loan portfolio is expected to
grow by 10% to 13% during the 2019 financial year. In the same period, the
cost/income ratio is anticipated to be below 70% and the consolidated profit is
expected to be between EUR 48 million and EUR 55 million. It is expected that
the Common Equity Tier 1 capital ratio (CET1 fully loaded) will continue to exceed
13%.
The ProCredit Holding Annual Report 2018,
the non-financial Impact Report 2018 and the Disclosure Report 2018 are
available as of today in the Investor Relations section of the ProCredit
Holding website at https://www.procredit-holding.com/investor-relations/reports-and-publications/
Contact:
Andrea Kaufmann, Group Communications,
ProCredit Holding, Tel.: +49 69 951 437 138,
About ProCredit Holding AG & Co. KGaA
ProCredit Holding AG & Co. KGaA, based
in Frankfurt am Main, Germany, is the parent company of the
development-oriented ProCredit group, which consists of commercial banks for
small and medium enterprises (SMEs). In addition to its operational focus on
South Eastern and Eastern Europe, the ProCredit group is also active in South
America and Germany. The company’s shares are traded on the Prime Standard segment
of the Frankfurt Stock Exchange. The anchor shareholders of ProCredit Holding
AG & Co. KGaA include the strategic investors Zeitinger Invest and
ProCredit Staff Invest (the investment vehicle for ProCredit staff), the Dutch
DOEN Participaties BV, KfW Development Bank and IFC (part of the World Bank
Group). As the group’s superordinated company according to the German Banking
Act, ProCredit Holding AG & Co. KGaA is supervised on a consolidated level
by the German Federal Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht, BaFin) and the German Bundesbank. Further
information is available on our website: www.procredit-holding.com.
Forward-looking statements
This press release contains statements
relating to our future business development and financial performance, as well
as statements relating to future actions or developments affecting
ProCredit Holding which may constitute forward-looking statements. Such
statements are based on the management of ProCredit Holding’s current
expectations and specific assumptions, many of which are beyond the control of
ProCredit Holding. They are therefore subject to a multitude of risks,
uncertainties and factors. Should one or more of these risks or uncertainties
materialise, or should underlying expectations or assumptions prove incorrect,
then the actual results, performance and achievements (both negative and
positive) of ProCredit Holding may differ significantly from those expressed or
implied in the forward-looking statement. ProCredit Holding undertakes no
obligation and does not intend to update these forward-looking statements or
correct them in the event of developments differing from those expected.