New Year's Meeting With Journalists: ProCredit Holds Leading Position in SME Sector, Portfolio in 2018. grew 10%

ProCredit Bank remains committed to the development of the BiH economy, and sees the SME sector as the most important driver of development in terms of opening new jobs and boosting exports. As of the end of October this year, the Bank realized growth of 10% and strengthened the quality of its loan portfolio. It is important to mention that ProCredit has also recorded a strong growth in the loan portfolio on the group level.

Sarajevo, 17.  December 2018.  - As of October this year, ProCredit Bank BiH achieved a total growth of 10%.  With 16% of the market share, the Bank retained a leading position in the business with small and medium-sized enterprises (SMEs), while simultaneously introducing itself to the retail market with a lot of innovations as a digital bank whose services are adapted to contemporary trends.  In the next year, the planned growth of loan portfolio in the SME sector is around 15%, as said today in the New Year's interview with members of the Management Board of ProCredit Bank Edin Hrnjica, President of the Management Board, Amel Agic and Amir Salkanovic, members of the Bank's Management Board, with the representatives of the Bosnian media.  


Leaders in SME sector

 ProCredit Bank remains committed to the development of the BiH economy, and sees the SME sector as the most important driver of development in terms of opening new jobs and boosting exports.  As of the end of October this year, the Bank realized growth of 10% and strengthened the quality of its loan portfolio.  It is important to mention that ProCredit has also recorded a strong growth in the loan portfolio on the group level.

Particular emphasis was placed on the so-called  green portfolio which is supporting investments that are environmentally and socially responsible.  Thus, in the course of the year, the green portfolio made up to 17.1% of the total portfolio of the bank, while green investment loans had a share of 26.5% in the total investment loans portfolio.

ProCredit Bank has also continued to provide clients with affordable credit and guarantee lines of the European Investment Fund and the European Investment Bank in 2018.  These warranty lines offer significant benefits to small and medium enterprises, not only in a commercial sense, but also through the reduction of collateral coverage, which is recognized by clients as a major benefit.  This is also emphasized by the fact that in 2018. alone,  66 million BAM was placed in the market from guarantee lines and used by around 200 companies.  In the next year, successful cooperation with European partners is planned in order to enable Bank's clients to have a simpler access to more favorable guarantee and credit lines. 

The Bank is still pioneering in digitalization processes since by end of August 2018, 100% of transactions were made via electronic channels and 24/7 zone.  From September 2018. there's no cash in the branches of the bank which is all part of the so-called cashless business model.  


Private Individuals

Significant results have also been achieved with new, unique service for private individuals which focuses on retail business.  The Bank has come up with an innovative offer containing a set of services for individuals with exceptional benefits in the domain of payment (20 free payments), free BAM and EUR conversions, and free three cash withdrawals with contactless Mastercard debit card at other banks ATMs throughout B&H, etc..  It is worth pointing out that this offer is designed for all clients who want autonomy in performing banking transactions and equal treatment in terms of priority.

The Bank continues to invest in improving the PCB Direct online platform for private individuals that provides an online application for services, as well as information on the current offers for private individuals.

It's worth mentioning that one of the biggest advantages of the bank is digital business, which includes ATMs in BAM and EUR currency, the possibility of performing all banking transactions in 24/7 zones, and the fact that ProCredit is the only bank that provides the possibility to use all services cashlessly. Promoting the savings culture on the one hand, as well as the responsibility in lending in terms of not promoting and offering cash and consumer loans on the other, the bank has developed the concept of simple and flexible savings services.  In addition, the bank uses these savings funds for placing SMEs on investment in projects that strengthen the economy and generate new jobs. 


Estimations for 2019.

Despite the numerous challenges our clients face and we, as an institution along with them, starting from an unstable political situation, migration of the population and the workforce, high taxes, etc.. , our plan is to further strengthen the market position as a leader in business with SMEs, with a special emphasis on support for exporters, then supporting importers through stimulation in terms of outflows and inflows from abroad, support for financing through guarantee funds and generally continuing the overall commitment of SMEs sector as the carrier of the country's economy.  In this context, the growth of credit portfolio in small and medium-sized enterprises is planned to be around 15% in 2019.  Bearing in mind the strategic orientation of the bank and the group when it comes to this segment, we will give special emphasis to the development of the so-called.  "Green" investments with a reach of 20% of the total portfolio in this sector. 

Also, the continuation of the implementation of the new concept towards individuals is the strategic commitment of the bank in this segment and in the following  year.  Efforts to create a digital bank have been fruitful.  The introduction of a unique service that implements the entire set of services to individuals from invoicing, domestic payments, e-banking and a card allowing three free cash withdrawals at all ATMs in the country, all at a single price, has proven to be revolutionary.  The insistence on not promoting consumer banking appealed with the clients since it differs from what our market typically offers - consumer lending to citizens.  Therefore, in 2019.  Bank plans to increase the deposits of private individuals by about 20%.

Furthermore, ProCredit Bank continues to promote direct banking as something that we already recognize on the market and beyond.  By introducing 100% automation and complete discontinuation of cash operations, and the flexibility our e-banking provides in terms of asset management is an additional step forward.  The plan is to improve the new m-banking application in 2019.  in order to answer all the requirements that an average customer can have in the mobile banking service.  Also, the introduction of mobile payment is planned somewhere near the end of 2019.  Special attention has been paid to the security aspects at all levels in line with the most up-to-date standards available today in this field, according to a statement by ProCredit Bank BiH regarding the New Year's interview with journalists, representatives of the Bosnian-Herzegovinian media.  


About ProCredit Bank B&H 

ProCredit Bank was the first international bank to come to Bosnia, which had already been hardly recovering from the then-war-ravaged Bosnia.  In 1997 ProCredit Group saw the possibility of development and sent their experts who, by analyzing the market at that time, offered a solution in the form of financing small businessmen.  Over the years, the bank specialized in small and medium-sized enterprises, which are at the same time a real generator of economic development, operating regularly, timely settling their obligations, hiring new employees, improving the quality of life of the community, exporting, etc..  Today, ProCredit Bank operates with strong, stable and recognizable B&H companies.  For years, ProCredit Bank has made extraordinary efforts to enable them to access the necessary means for business improvement, so today we offer our clients access to credit lines with much lower interest rates and guarantee lines that significantly reduce the requirements for collateral coverage. For a while now, the Bank offers financing through the credit / guarantee lines of the European Union, the World Bank and USAID. Also, in order to encourage exports of domestic businesses, ProCredit Bank offers the best prices for international payment transactions, where payments are specifically made to sister banks in the ProCredit Group, 2. 5 euros per transaction.  ProCredit Bank B&H is part of the ProCredit Group based in Frankfurt, Germany.  The Bank is in absolute ownership of ProCredit Holding, the parent company of ProCredit Group.  Shareholders of ProCredit Holding include strategic investors, Zeitinger Invest and ProCredit Staff Invest and renowned names such as DOEN, KfW and IFC (a part of the World Bank Group).  More informtion available on