DGAP-News: ProCredit Holding AG & Co. KGaA / Key word(s): Quarterly / Interim Statement
ProCredit group reports solid first quarter of 2019
- Gross loan portfolio growth of 1.7%
- Negotiations for the sale of ProCredit Bank Colombia successfully concluded
- Consolidated result of EUR 10.7 million in line with the group's expectations
- Full-year forecast confirmed
This portfolio growth was the result of a solid increase in loans to clients in all segments outside Germany. The development in Germany was influenced by the sale of the project finance portfolio. Overall, growth was in line with the expectations set forth in the business plan.
The volume of customer deposits amounted to EUR 3.8 billion at the end of the first quarter. The drop in deposits of EUR 27 million or 0.7% since year-end was due to the seasonal decrease in business client deposits. Compared to the previous year, deposits from private clients have clearly stabilised.
The ProCredit group's consolidated result for the first quarter of 2019 amounted to EUR 10.7 million, and was thus EUR 3.9 million lower than the result for the same period of the previous year (Q1 2018: EUR 14.6 million).
As expected, expenses for risk provisioning rose by EUR 2.5 million during the current financial year compared to the same period of the previous year. At 3.1%, the share of credit-impaired loans in the overall loan portfolio and their risk coverage ratio generally remained at the same very good level reported at year-end 2018. Another factor impacting the consolidated result was a consequence of the strategic decision to sell ProCredit Holding's shares in Banco ProCredit Colombia S.A. during the current financial year. Agreement over the sale has already been reached. Completion of the transaction is subject to the approval of the Colombian authorities. The result from discontinued operations, amounting to EUR -1.8 million, primarily reflects the anticipated losses from this transaction.
Interest income increased by more than EUR 5 million to EUR 70.7 million compared to the same period of the previous year. Interest expenses also increased due to higher liquidity levels and to the growing proportion of long-term liabilities in total liabilities and equity. Net interest income fell slightly compared to the same period in the previous year.
The EUR 1.3 million rise to EUR 12.7 million in net fee and commission income compared to the result for the same period of the previous year derives mostly from the introduction of the direct banking strategy during 2018. Furthermore, the acquisition of new business clients is leading to higher fee income from payment transactions.
The ProCredit group's cost-income ratio for the first quarter of 2019, at 69.8%, was on a par with the previous year's figure. The Common Equity Tier 1 capital ratio, at 14.3%, also matched the level reported at year-end 2018.
ProCredit reconfirms its forecast of 10%-13% growth of the gross loan portfolio for the year as a whole. The group also reiterates its forecast of a cost-income ratio of below 70% and a consolidated result of between EUR 48 million and EUR 55 million. The Common Equity Tier 1 capital ratio (CET1 fully loaded) is expected to exceed 13%.
During the current financial year Fitch Ratings confirmed its Long-Term Issuer Default Rating (IDR) of 'BBB' with Stable Outlook, and ProCredit Holding's so-called Viability Rating was raised from bb- to bb. This was prompted, among other things, by the solid capital and risk indicators.
The ProCredit group's quarterly report is available in the German and English languages as of today on the ProCredit Holding website under Investor Relations at http://www.procredit-holding.com/en/investor-relations/reports-publications/financial-reports/.
About ProCredit Holding AG & Co. KGaA
13.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||ProCredit Holding AG & Co. KGaA|
|60486 Frankfurt am Main|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange|
|EQS News ID:||810175|
|End of News||DGAP News Service|