DGAP-News: ProCredit Holding AG & Co. KGaA
/ Key word(s): 9 Month figures/9 Month figures
The ProCredit group achieves strong results in the third quarter
- Consolidated result of EUR 44.0 million since the beginning of the year (9M 2018: EUR 40.9 million) well in line with expectations
- Significantly improved result in the third quarter to EUR 21.1 million (Q2 2019: EUR 12.2 million; Q1: EUR 10.7 million), among other factors attributable to strong increase in net interest income
- Strong growth in customer deposits of EUR 348 million or 9.1% since the beginning of the year (9M 2018: 2.8%)
- Continued solid growth in the gross loan portfolio of 8.3% or EUR 360 million since the beginning of the year
- Full-year forecast confirmed
The ProCredit group continues to benefit from its positioning as the Hausbank for small and medium-sized enterprises (SMEs) and the implementation of the digital ProCredit DIRECT strategy. The improvement in earnings is primarily attributable to the increase in net interest income in the third quarter by 7.8% to EUR 50.9 million (Q2 2019: 47.3 million). This was driven both by continued portfolio growth and a slight increase in the net interest margin compared with the previous quarters.
Customer deposits grew strongly over the past nine months by EUR 348 million. This is significantly higher than in the same period of the previous year (9M 2018: EUR 99 million). Deposits from both private and business customers increased in the third quarter. This positive development reflects the successful implementation of the Hausbank concept and the ProCredit DIRECT strategy.
The increase in net fee and commission income by EUR 1.6 million to EUR 38.9 million in the first nine months of the year (9M 2018: EUR 37.3 million) is mainly due to the introduction of the direct banking offer.
Operating expenses for the first nine months of the year increased by EUR 3.1 million to EUR 126.1 million, particularly due to increased marketing efforts for ProCredit DIRECT. Quarterly operating expenses of EUR 42.7 million remained essentially stable compared to the previous quarter (Q2 2019: EUR 42.3 million). A minor increase in staff costs was largely offset by lower administrative expenses.
The result from discontinued operations of EUR -1.9 million for the first nine months of 2019 primarily consists of the anticipated losses from the sale of ProCredit Bank Colombia. As previously announced, ProCredit Holding successfully completed the sale of this entity in October 2019. The transaction is expected to have a further negative effect of approximately EUR 5 million in the fourth quarter of 2019, mainly due to the deconsolidation and related currency effects.
At 68.4%, the cost-income ratio for the first nine months of 2019 was below the previous year's level (9M 2018: 69.2%) due to improvements in earnings. At 14.3%, the fully loaded Tier 1 capital ratio as of 30 September 2019 remained at the comfortable level of year-end 2018.
The expansion of the "green" loan portfolio continues to be of high strategic importance for the ProCredit group. The growth of green loans by 10.2% over the past nine months to EUR 746.6 million exceeded the growth of the total loan portfolio. The green loan portfolio accounted for 15.9% of the total loan portfolio as at 30 September 2019. This underscores the good positioning of the ProCredit group as a partner for financing green and sustainable investments in the SME sector.
The quality of the portfolio also improved after the first nine months of 2019 compared with the end of the previous year. At 2.7%, the share of non-performing loans in the total loan portfolio was below the already good level at the end of 2018 (31 December 2018: 3.1%). The risk coverage ratio also improved, from 90.8% to 93.1% as of 30 September 2019.
The group confirms its forecast of 10-13% growth of the gross loan portfolio for the year as a whole, assuming no significant volatility in the exchange rates. It also reiterates its forecast of a cost-income ratio of below 70% and a consolidated result of between EUR 48m and EUR 55m. It is expected that the Common Equity Tier 1 capital ratio (CET1 fully loaded) will continue to exceed 13%.
About ProCredit Holding AG & Co. KGaA
13.11.2019 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:||911449|
|End of News||DGAP News Service|