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ProCredit Holding (XETRA: PCZ)

Currency in EUR

Last close As at 04/12/2023

EUR8.74

▲ 0.32 (3.80%)

Market capitalisation

EUR511m

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.

According to the World Economic Outlook released in October 2023, the International Monetary Fund expects c 3–5% GDP growth pa in 2024–28 for PCB’s countries of operations (except for Ukraine and Ecuador). 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 14.2% at end-June 2023) should help it weather the near-term macroeconomic slowdown. 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 sustained good credit quality of its portfolio, among others.

Latest Insights

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Financials | Update

ProCredit Holding — Profitability not fully rewarded by the market

Financials | Update

ProCredit Holding — On track to meet FY23 ROE guidance of 8–10%

Financials | Update

ProCredit Holding — Strong rebound in profitability in Q123

Financials | Outlook

ProCredit Holding — Raising its mid-term targets
ProCredit Holding_resized
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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 28.0 17.0 131.5
Relative 16.3 15.3 105.5
52 week high/low €8.8/€3.7

Financials

ProCredit Holding (PCB) reported a strong Q323 return on equity (ROE) of 12.5%, assisted by a significant increase in net interest margin (NIM) to 3.9% (vs 3.2% in Q322 and 3.6% in Q223) on the back of continued positive asset repricing from higher base rates (which more than offset deposit repricing). As a result, operating income grew by 26.5% y-o-y (ahead of operating expenses), bringing PCB’s cost to income ratio (CIR) to 57.1% (vs 61.9% in Q322). This was coupled with a moderate annualised cost of risk of 55bp (9M23: 20bp). PCB’s management guides to FY23 ROE of c 12% (vs 8–10% earlier this year), which is in line with its current mid-term ROE target. We are raising our FY23 and FY24 net income estimates by 28% and 15%, respectively. PCB is likely to pay out one-third of its FY23 profits, implying currently a healthy dividend yield of 7.5%.

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 6.2 N/A
2022A 264.6 N/A 17.8 28.0 30.1 N/A
2023E 304.0 N/A 109.2 154.8 5.4 N/A
2024E 312.5 N/A 118.9 171.4 4.9 N/A

Research

ProCredit Holding_resized

Update

Financials

ProCredit Holding — On track to meet FY23 ROE guidance of 8–10%
ProCredit Holding_resized

Update

Financials

ProCredit Holding — Strong rebound in profitability in Q123
ProCredit Holding_resized

Financials

Update

ProCredit Holding — Profitability not fully rewarded by the market

ProCredit Holding_resized
View All

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

Analyst of the week

Milosz Papst

Milosz Papst

Director, Financials

mpapst@edisongroup.com +44 (0)20 3077 5700
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