ProCredit Group Reports Strong Performance in 2023 with Achieved RoE Guidance

The ProCredit group announced a robust financial outcome for 2023, achieving a result of EUR 113.4 million, which corresponds to a return on equity (RoE) of 12.2%. This marks a significant year-on-year operating income increase of 21%, contributed to by all regular income sources. The group also reported an improved cost-income ratio of 59.9%, down by 4.1 percentage points.

Amidst moderate loan portfolio growth of 1.9%, ProCredit Direct's appeal to private clients led to a substantial 15.3% growth in deposits. The group's CET1 ratio remained comfortable at 14.3%. Looking ahead, the Management Board has set an RoE target ranging between 10%-12% for 2024, with longer-term aspirations aimed at reaching 13%-14%. A dividend proposal of EUR 0.64 per share is also on the agenda for the upcoming Annual General Meeting.

Operational efficiencies and income growth were noted across the board, with notable increases in net interest income, net fee, and commission income, alongside foreign currency transaction gains. The cost of risk normalized to 25 basis points in 2023, showcasing steady portfolio quality despite ongoing global uncertainties.

In alignment with their optimistic performance and future outlook, ProCredit plans to further invest in staff, IT, and marketing endeavors to bolster market presence and achieve desired scale effects. The group also anticipates a significant growth in its loan portfolio and an enhanced deposit base, aiming for a balanced and sustainable growth trajectory in the years to come.