ProCredit Holding AG & Co. KGaA
- ISIN: DE0006223407
- Land: Deutschland
Nachricht vom 14.08.2019 | 06:58
ProCredit Holding AG & Co. KGaA: ProCredit group reports solid results and further strengthens its market position in the first half of 2019
DGAP-News: ProCredit Holding AG & Co. KGaA / Key word(s): Half Year Results/Quarter Results
ProCredit group reports solid results and further strengthens its market position in the first half of 2019
- Gross loan portfolio growth of 5.0% YTD (EUR 217m)
- Net interest and commission income higher than same period of previous year
- Consolidated result of EUR 22.9m (H1 2018: EUR 26.7m) in line with the group's expectations
- Further cooperation agreements concluded with international institutions such as EIF and IFC in order to finance innovative and green investments by SMEs in the emerging markets in which the group works
- Full-year forecast confirmed
In lending, the group focuses on the sustainable financing of investments by innovative, high-growth SMEs with stable and formalised structures. Particular emphasis is placed on promoting green investments, financing local production and strengthening the agricultural sector. 93% of outstanding ProCredit group loans are to businesses.
At the end of Q2 2019, the volume of customer deposits in the continuing operations amounted to EUR 3.9 bn. This represents an increase of EUR 63m (1.7%) compared with the previous year. Deposits from private customers also increased, reversing a decrease in 2018, reflecting positive developments with the execution of the group's digital ProCredit DIRECT strategy.
Due to the portfolio growth, net interest income recorded an increase in the first half of 2019 to EUR 92.7m (H1 2018: EUR 92.1m). At 3.1%, the net interest margin at the end of Q2 2019 was stable at the same level as at the end of Q1, laying the foundation for increased net interest income with future portfolio growth.
Expenses for credit risk provisions increased year on year to EUR 4.1m in the first half of 2019 (H1 2018: EUR -0,1m). Overall, however, portfolio quality improved further in the first half of 2019. At 2.9%, the share of non-performing loans in the total loan portfolio of the continuing operations showed a slight improvement on the already good level recorded at the end of the previous year (31 December 2018: 3.1%). The risk coverage ratio also improved during the first half of 2019, from 90.8% on 31 December 2018 to 94.9% on 30 June 2019. At 0.1%, net write-offs in the first half of 2019 remained at their usual very low level.
Net fee and commission income grew by EUR 1.8m (7.4%) to EUR 25.8m (H1 2018: 24.0m). This increase is primarily the result of the ProCredit group implementing its direct banking strategy.
The increase in operating expenses by EUR 2.1m to EUR 83.5m (H1 2018: EUR 81.4m) was mainly due to spending on marketing activities in connection with the introduction of ProCredit DIRECT.
The result from discontinued operations of EUR -1.5m mainly comprises the anticipated losses from the planned sale of ProCredit Bank Colombia, which is currently awaiting the approval of the Colombian authorities.
The ProCredit group's total consolidated result for the first half of 2019 amounted to EUR 22.9m. This was EUR 3.8m lower than the previous year (H1 2018: EUR 26.7m), which is broadly in line with expectations.
At 70.7%, the cost-income ratio of the ProCredit group for the first half of 2019 in its continuing operations was slightly above the previous year's level (H1 2018: 70.2%). The Common Equity Tier 1 capital ratio, which stood at 14.3%, on 30 June 2019, was at the same level as at year-end 2018.
The group's "green portfolio" continued to show strong growth in the first half of 2019, increasing by EUR 34m to EUR 711m. It now accounts for 15.6% of the total loan portfolio. This underlines the great importance the group places on financing its clients' green and sustainable investments.
Thanks to its strong market positioning with SMEs in South-Eastern and Eastern Europe, during the course of financial year 2019 the ProCredit group has been able to conclude further cooperation agreements with international institutions whose mandate includes the sustainable promotion of SMEs in these regions.
In July 2019 the cooperation with the European Investment Fund (EIF) to promote lending to innovative SMEs in Eastern and South-Eastern Europe through the InnovFin guarantee programme was expanded by an additional EUR 800m, bringing the total volume to EUR 1.6bn. This will support the ProCredit group's ambitions to grow its target SME loan portfolio in an efficient manner regarding risk weighted assets, whilst providing high quality collateral.
In May 2019 an agreement was signed with the World Bank's International Financial Corporation (IFC) to place USD 90m in green bonds. The agreement sets a milestone in the financing of SME green investments in Eastern Europe in the fields of energy efficiency, renewable energy and environmentally friendly measures ("green loans").
The company's management 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 48m and EUR 55m. It is expected that the Common Equity Tier 1 capital ratio (CET1 fully loaded) will continue to exceed 13%.
The group's half-year report is available from today in German and English on the ProCredit Holding website under Investor Relations at: https://www.procredit-holding.com/investor-relations/reports-and-publications/financial-reports/.
|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:||857069|
|End of News||DGAP News Service|
Solid H1 result and strong growth figures - Pr ...
ProCredit Holding AG & Co. KGaA: Preliminary a ...
ProCredit Holding AG & Co. KGaA: International ...
ProCredit Holding AG & Co. KGaA: Management Bo ...
ProCredit group closes Q1 2020 with portfolio ...
Anleihe der German Real Estate Capital S.A. stark überdurchschnittlich attraktiv
Die Anleihe der German Real Estate Capital S.A. weist aktuell eine Effektivverzinsung von ca. 14 % auf. Da es sich hier quasi um eine Immobilien-Anleihe handelt, ist das Anleiherisiko überschaubar. Insgesamt verfügt die German Real Estate-Gruppe über 6 Objekte, 24 Bestands- und 22 Handelsobjekte, womit eine Kombination aus stetigen Einnahmen und attraktiven Entwicklerrenditen erreicht wird. Wir stufen die Anleihe als stark überdurchschnittlich attraktiv ein.
Der AKTIONÄR News
14. August 15:01 Mallorca wieder Corona-Risikogebiet – TUI leidet
14. August 14:58 Alibaba und Xiaomi: Milliarden-Beben im Top-Index
News im Fokus
Daimler AG: Daimler erzielt Grundsatzeinigungen über die vergleichsweise Beilegung behördlicher und zivilrechtlicher Verfahren in den USA im Zusammenhang mit Diesel-Emissionen
13. August 2020, 18:22
H1/Q2 2020 Earnings Call
14. August 2020
Original-Research: Media and Games Invest plc (von First Berlin Equity Research GmbH): BUY
14. August 2020