ProCredit Holding (PCB) is a Germany-based group operating regional banks across South Eastern and Eastern Europe and Ecuador. The banks focus on MSMEs and private clients.
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 October 2023 forecasts of the International Monetary Fund. PCB’s performance should be driven by its in-depth, impact-oriented relationships with SME borrowers, prudent credit risk management and solid capital base (CET-1 ratio of 14.3% at end-2023). 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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Outlook
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
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 8.9 | 16.2 | 56.9 |
Relative | 11.0 | 9.6 | 39.0 |
52 week high/low | €9.3/€5.8 |
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 is to grow its loan portfolio to more than €10bn (compared to c €6bn at end-2023) and reach a return on equity of c 13–14%.
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 | 32.3 | 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 |