ProCredit Holding (XETRA: PCZ)

Last close As at 28/03/2024

EUR9.06

0.38 (4.38%)

Market capitalisation

EUR512m

ProCredit Holding (PCB) is a Germany-based group operating regional banks across South Eastern and Eastern Europe and Ecuador. The banks focus on SMEs and private middle-income and high earners.

The economic outlook for 2024 is benign, with GDP growth of 3.0% or more across all countries of PCB’s operations (except for Ecuador – 1.8%), according to the forecasts of the International Monetary Fund released in October 2023. PCB’s in-depth, impact-oriented relationships with SME borrowers (c 90% of the loan book), prudent credit risk management and solid capital base (CET-1 ratio of 14.9% at end-September 2023) should help it benefit from the economic growth across Southeastern and Eastern Europe. Longer term, PCB’s business should be assisted by the low banking sector penetration in the region, scaling potential of its regional banks, an improving deposits to loans ratio and the sustained good credit quality of its portfolio, among others.

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Sector

Financials

Equity Analyst

Milosz Papst

Milosz Papst

Director, Financials

Key Management

  • Christian Dagrosa

    Management Board Member

  • Dr Gian Marco Felice

    Management Board Member

  • Eriola Bibolli

    Management Board Member

  • Hubert Spechtenhauser

    Chairman

  • Sandrine Massiani

    Management Board Member

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 14.2 7.4 59.0
Relative 8.2 (2.4) 29.3
52 week high/low €8.8/€5.8

Financials

PCB has extensive experience in supporting SMEs in emerging economies (and a strong ESG profile), with a focus on Southeastern and Eastern Europe and banking operations in Ecuador. The company’s medium-term target assumes a return on equity of c 12%, based on a cost of risk at 25–30bp over the cycle, as well as a cost-income ratio of c 57%, which we consider achievable.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2021A 222.0 N/A 94.5 135.0 6.7 N/A
2022A 264.6 N/A 17.8 28.0 32.4 N/A
2023E 339.8 N/A 142.2 197.5 4.6 N/A
2024E 349.3 N/A 135.4 196.8 4.6 N/A

Further insights

insight

Financials

ProCredit Holding: EKF 2023 QuickView

insight

Financials

ProCredit ESG Edge Update

insight

Financials

Deutsches Eigenkapitalforum (EKF) 2022 financials

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022

insight

Financials

ProCredit Holding: Flying High – ESG Edge Report

Thematics

thematic

Industrials

German industrials: Global ambitions

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