ProCredit Holding AG (PCZ.DE), on Thursday, reported financial results for the first half of 2025, highlighting its progress in executing a multi-year growth and transformation strategy.
The group posted a net profit of EUR47.0 million, translating to an annualized return on equity of 9.0%. Excluding its South American operations, return on equity reached 10.0%. Loan growth remained strong and diversified, with the portfolio expanding by EUR504 million or 7.2% (FX-adjusted), driven primarily by micro and small enterprises and private clients.
Despite strategic investments, including a 19% increase in staff and 47 new service points in 2024, the cost-income ratio rose only modestly to 70.9%, with much of the cost base increase absorbed by mid-year.
Net interest income declined to EUR171.3 million, impacted by lower policy rates, while fee and commission income rose 6.2% to EUR47.0 million, buoyed by strong transaction and FX business.
Portfolio quality remained high, with a cost of risk at just 1 basis point and defaulted loans stable at 2.1%. The CET1 capital ratio held steady at 13.1%, supporting the group's dividend policy and growth ambitions.
Looking ahead, management reaffirmed its full-year guidance: 12% FX-adjusted loan growth, 10% return on equity, and a CET1 ratio around 13%. The cost-income ratio is now expected to settle near 70%, slightly above the prior year's 68.1%.
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