14.08.2018
ProCredit Holding AG & Co. KGaA DE0006223407
DGAP-News: ProCredit Holding AG & Co. KGaA: ProCredit group achieves strong loan portfolio growth of 8.9% in the first half of 2018
DGAP-News: ProCredit Holding AG & Co. KGaA / Key word(s): Half Year Results
ProCredit Holding AG & Co. KGaA: ProCredit group achieves strong loan
portfolio growth of 8.9% in the first half of 2018
14.08.2018 / 07:29
The issuer is solely responsible for the content of this announcement.
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ProCredit group achieves strong loan portfolio growth of 8.9% in the first
half of 2018
- The ProCredit group recorded strong growth in the first half of 2018: the
gross loan portfolio increased by EUR 350 million or 8.9% (H1 2017: 4.8%) to
EUR 4.3 billion
- At EUR 26.7 million, the consolidated result from ongoing business
operations in H1 2018 is significantly above the H1 2017 result (EUR 20.8
million)
- Implementation of the direct banking concept for private clients led to an
11.1% increase in net fee and commission income to EUR 24.0 million (H1
2017: EUR 21.6 million)
- Forecasts for 2018 confirmed: gross loan portfolio growth of 12 to 15% and
a return on equity of 7.5 to 8.5%
Frankfurt am Main, 14 August 2018 - ProCredit Holding AG & Co. KGaA
(ProCredit Holding) reports dynamic growth for the ProCredit banks, which
are primarily active in South Eastern and Eastern Europe. Positioned as the
"Hausbank" for small and medium-sized enterprises (SMEs), the ProCredit
group achieved gross loan portfolio growth of 8.9% or EUR 350 million in the
first half of 2018, bringing the total portfolio to EUR 4.3 billion (31
December 2017: EUR 3.9 billion). The ProCredit group was thus able to build
on the positive development recorded for H1 2017 (4.8% or EUR 173 million)
and the entire 2017 financial year (8% or EUR 281 million).
Until the end of the 2017 financial year, loan portfolio development in the
ProCredit group was influenced by the transformation process which
accompanied the strategic focus on SMEs with good development perspectives.
The strong growth recorded for the first half of 2018 demonstrates how all
of the ProCredit banks have effectively positioned themselves as "Hausbanks"
for dynamic SMEs.
Borislav Kostadinov, member of the Management Board of ProCredit General
Partner AG (sole liable managing entity of ProCredit Holding AG & Co. KGaA):
"The first half of 2018 was very good for the ProCredit group. We recorded
strong portfolio growth, even higher in the first half of 2018 than in the
entire previous financial year. This shows that we were able to continue
with the planned expansion of our business with SME clients. This
significant growth is precisely why we strengthened our capital base with a
successful capital increase in February 2018. Our success derives from the
high quality advice and performance of our staff, combined with our
successful positioning as reliable Hausbanks for SMEs."
Our portfolio of green loans, which the ProCredit banks use to support
environmentally responsible projects, showed strong growth as well: As of 30
June 2018, these loans accounted for 13.9% of the overall loan portfolio (31
December 2017: 12.6%). Moreover, green loans represented 17.2% of all
investment loans as of 30 June 2018.
The ProCredit group's consolidated result from ongoing business operations
for the first half of 2018 amounted to EUR 26.7 million, which is higher
than the EUR 20.8 million recorded for the same period of the previous year.
The measures implemented in the previous financial year to increase
efficiency are now clearly reflected in lower operating expenses. Compared
to the same period in the previous year, staff and administrative expenses
decreased by 12.3%, or EUR 11.7 million, to EUR 83.5 million. Furthermore,
with the introduction of our direct banking concept for private clients, net
fee and commission income was increased by 11.1% to EUR 24.0 million.
Targeted marketing campaigns during the second half of 2018 aim to further
increase awareness.
Risk provisioning expenses remained low, which also had a positive effect on
the consolidated result. This development is based on constant improvements
in portfolio quality. Over the course of the first six months of the year,
the share of non-performing loans decreased from 4.8% on 31 December 2017 to
3.7% as of 30 June 2018. The level of risk coverage for non-performing loans
rose to over 90%.
The cost-income ratio decreased for the first six months of 2018 to 71.3%,
compared to a ratio of 75.1% for H1 2017. The improvements visible in this
ratio are a reflection of the successfully implemented cost-efficiency
measures.
At EUR 26.7 million, the ProCredit group's overall consolidated result was
above the level recorded for the first half of 2017 (EUR 23.6 million).
Mr Kostadinov elaborated: "We are satisfied with our results for the first
half of the year as well. Cost reductions in the branch network made strong
contributions to this positive development. Our direct banking concept for
private clients is starting to bear fruit: We primarily target clients from
the growing middle class, as they see the clear added value of comfortable
and simple banking via digital channels. This enabled us to achieve growth
in our net fee and commission income."
The return on equity (RoE) stood at 7.5% as at 30 June 2018. Compared to the
same period of the previous year, the RoE improved by 0.5 percentage points
(H1 2017: 7.0%), despite the increase in the capital base.
Client deposits, which are the most important source of funding for the
ProCredit banks, stood at EUR 3.6 billion as at 30 June 2018; this was the
same level reported at the end of the 2017 financial year and is slightly
above the EUR 3.5 billion recorded end-2016. This is a very positive
achievement, particularly in light of the significant reduction of our
branch network and the digitisation of private client services. The decrease
in small deposit volumes connected with closing branches was offset entirely
with growing deposits from business clients.
The Common Equity Tier 1 capital ratio (CET1 fully loaded) increased from
13.7% as at end-2017 to 14.6%, underscoring the solid capitalisation of the
ProCredit group. The 10% capital increase carried out in February 2018 had a
significant influence on this ratio.
Capital requirements according to the Supervisory Review and Evaluation
Process (SREP) were provided to ProCredit Holding for the first time in Q2
2018. The SREP requirement for the ProCredit group for 2018 was set at 8.1%
for the CET1 capital ratio, 10.1% for the Tier 1 capital ratio and 12.9% for
the total capital ratio, taking into account the capital buffers. The
ProCredit group's capital base is comfortably above these requirements.
For 2018 as a whole, ProCredit confirms the forecasts presented in the
published 2017 Annual Report: gross loan portfolio growth of 12 to 15% is
still anticipated. Depending on the development of the net interest margin
and loan portfolio growth, the RoE is expected to be between 7.5% and 8.5%
for the 2018 financial year.
The group's half-year report is available from today in German and English
on the ProCredit Holding website under Investor Relations at:
http://www.procredit-holding.com/investor-relations/reports-publications/financial-reports/
Contact:
Andrea Kaufmann, Group Communications, ProCredit Holding, Tel.: +49 69 951
437 138,
E-mail: [email protected]
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 report contains forward-looking statements. Forward-looking statements
are statements that do not describe past events. They include statements on
the assumptions and expectations of ProCredit Holding as well as underlying
assumptions. These statements are based on the plans, estimates and
forecasts currently available to the Management of ProCredit Holding.
Forward-looking statements therefore pertain solely to the date on which
they are made. ProCredit Holding undertakes no obligation to update these
statements in the event of new information or future events. Forward-looking
statements naturally involve risks and uncertainties. A number of important
factors can contribute to the fact that actual results may differ materially
from forward-looking statements. These factors could include major
disruptions in the Eurozone, a significant change in foreign trade or
monetary policy, a worsening of the interest rate margin or pronounced
exchange rate fluctuations. Should any of these factors arise, the impact
could be manifested in decreased loan portfolio growth and an increase in
past-due loans, and thus result in lower profitability.
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14.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: ProCredit Holding AG & Co. KGaA
Rohmerplatz 33-37
60486 Frankfurt am Main
Germany
Phone: +49-69-951437-0
Fax: +49-69-951437-168
E-mail: [email protected]
Internet: www.procredit-holding.com
ISIN: DE0006223407
WKN: 622340
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Dusseldorf, Stuttgart, Tradegate
Exchange
End of News DGAP News Service
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