ProCredit Holding AG
SWB:PCZ
ProCredit Holding AG
ProCredit Holding AG & Co. KGaA engages in development-oriented commercial banks. The company is headquartered in Frankfurt, Hessen and currently employs 3,437 full-time employees. The company went IPO on 2016-12-22. The activities of the ProCredit group comprise the financing of Small and Medium-sized Enterprises (SMEs) and direct banking for private clients. The firm provides provision of equity and debt financing, strategic guidance and supervision, ensuring that all ProCredit institutions have appropriate organisational structures and procedures in place, and that they apply appropriate standards for risk management and the prevention of money laundering, fraud and the financing of terrorism. The company sets the overall policy guidelines and standards regarding all key areas of banking operations and involved in staff management and training. The firm offers development and delivery of curricula at the central ProCredit Academy in Fuerth. The company operates in South Eastern Europe, Eastern Europe, South America and Germany.
ProCredit Holding AG & Co. KGaA engages in development-oriented commercial banks. The company is headquartered in Frankfurt, Hessen and currently employs 3,437 full-time employees. The company went IPO on 2016-12-22. The activities of the ProCredit group comprise the financing of Small and Medium-sized Enterprises (SMEs) and direct banking for private clients. The firm provides provision of equity and debt financing, strategic guidance and supervision, ensuring that all ProCredit institutions have appropriate organisational structures and procedures in place, and that they apply appropriate standards for risk management and the prevention of money laundering, fraud and the financing of terrorism. The company sets the overall policy guidelines and standards regarding all key areas of banking operations and involved in staff management and training. The firm offers development and delivery of curricula at the central ProCredit Academy in Fuerth. The company operates in South Eastern Europe, Eastern Europe, South America and Germany.
Loan Growth: ProCredit Group’s loan portfolio grew strongly by 7.2% in the first half of 2025, adjusted for currency effects, with particular momentum in micro, small, and retail segments.
Profitability: Return on equity stood at 9%, slightly below but broadly in line with guidance, and would be 10% excluding negative contributions from Ecuador.
Margin Pressure: The group faced margin pressure from falling ECB and local policy rates, impacting income from central bank placements, while deposit rates remained sticky.
Cost/Income Ratio: Cost/income ratio reached 70.9%, reflecting elevated investments in staff, branches, and IT, but management expects improvement as these costs are now largely absorbed.
Guidance Confirmed: Management reaffirmed full-year guidance for 12% loan growth, about 10% return on equity, and a CET1 ratio of about 13%, though noted increased macroeconomic uncertainty.
Ecuador Weakness: Operations in Ecuador continued to weigh on group results, producing a loss of EUR 5.4 million in H1 2025.
Retail Deposit Growth: Retail deposits increased, driving a 1.5% FX-adjusted deposit growth year-to-date, though total deposit growth was below prior years due to business client outflows.
Strong Asset Quality: Cost of risk remained very low at 6 basis points annualized, with stable credit quality and low default rates (2.1%).
