ProCredit achived exceptional growth in 2017

16/05/2018

Frankfurt am Main - Belgrade 12 April 2018 - ProCredit Holding AG & Co. KgaA, as the parent company of the ProCredit group of banks, recorded outstanding business results in 2017. In the same time, ProCredit group of banks recorded growth of 18% in lending to small and medium-sized enterprises (SMEs) and this was achieved in their key segment - corporate loans exceeding EUR 30,000 (2016: 13%).

The total client loan portfolio of the Group, operating as “the bank” for SMEs primarily in South-Eastern and Eastern Europe, grew by 8% in 2017, which is significantly higher in comparison to 2016 (2.4%), despite the negative impact of the exchange rate.  

As at 31 December 2017, the Group’s total loan portfolio amounted to EUR 3.9 billion (31 December 2016: EUR 3.6 billion), and the main driver of this growth was very positive developments in key business with its clients. 

ProCredit Group is strategically focused on SMEs with sound potential for growth and development, and whose needs for financial assistance ranges from loans in the EUR 30,000 to EUR 3 million range. Throughout 2017, this key segment recorded double-digit growth of 18% to EUR 3.4 billion. 

In its sub-segment of loans exceeding EUR 50,000, ProCredit Group achieved growth of the portfolio of as much as 22.9%, whereby as at 31 December 2017 this sub-segment made up 89.7% of the key segment of loans exceeding EUR 30,000.

Growth of the loan portfolio of the Group was followed by further development in terms of quality. The share of loans in arrears (PaR 30) dropped to 2.9% (2016: 3.9%). As a result of this, the cost of provisions has been reduced by EUR 18.6 million (2016) to just EUR 5.3 million, while an appropriate level of risk coverage has been maintained.

Thanks to successful operations of this kind, the ProCredit Group achieved total profits of EUR 48.1 million in 2017.  Return on Average Equity amounts to 7.1% year-end. 

For 2018, growth of the gross loan portfolio has been projected at 12 - 15%, under the assumption of positive overall economic trends and without dramatic fluctuation of the exchange rate. Growth of this kind is expected primarily in terms of loans exceeding EUR 50,000. The share of lending in green financing and green loans will increase by over 15% of the gross loan portfolio.

- We can look back at 2017 with satisfaction, considering that we achieved our objectives in terms of profit and growth, as well as having successfully developed our private individual client strategy in initiating a new range of digital services. We intend to quicken our growth rate in 2018. Our banks have excellent reputations as “the bank” for SMEs in the markets in which we operate. Funds collected through successful recapitalisation at the start of this year will allow us to continue with good positioning, supporting our clients and will ensure the further growth of the ProCredit Group. - highlighted Mr Borislav Kostadinov, Member of Management at ProCredit Holding.