ProCredit (PCZ) Q2 2025 earnings summary

Executive summary

• Achieved 7.2% FX-adjusted loan growth in H1 2025, mainly from micro, small, and retail/private clients, with over 70% of growth from these segments.

• Net profit reached €47 million, corresponding to a 9.0% ROE, despite increased costs from strategic investments and a challenging macro environment.

• Strategic transformation focused on expanding retail and MSME banking, digital infrastructure, and sustainability initiatives, with investments in staff, branches, IT, and marketing largely absorbed.

• Strong regional performance in South Eastern and Eastern Europe, with resumed growth in Ukraine after a €20 million capital increase and investment guarantee.

Financial highlights

• Customer loan portfolio grew to €7.4bn (+7.2% FX-adjusted), with customer deposits at €8.2bn (+1.5% FX-adjusted).

• Operating income for H1 2025 was €213 million, down 3% year-over-year, mainly due to lower net interest income from receding policy rates.

• Net interest income declined by €9.2 million year-over-year to €171.3 million, while net fee and commission income increased by 6.2% to €47.0 million.

• Cost-income ratio rose to 70.9%, reflecting absorbed strategic investments and higher expenses.

• Stage 3 (credit-impaired) loans ratio improved to 2.1%, with coverage ratio at 49.3%.

Outlook and guidance

• 2025 guidance confirmed: loan growth around 12% (FX-adjusted), ROE around 10%, CET1 ratio around 13%, and cost-income ratio updated to around 70%.

• Medium-term ambitions: loan portfolio above €10 billion, cost-income ratio to 57%, ROE of 13–14%.

• Guidance risk heightened due to increased macroeconomic uncertainty, including inflation, FX volatility, and interest rate margin compression.