Record loan growth in the middle …

Appearance date: May 12, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Procdredit Holding AG (Xter: PCZ) achieved the highest growth of the loans and deposits in its history in the financial year 2024.

• Despite the challenges due to lower interest rates, the company reported a solid return on equity of 9.5%.

• The loan growth was strong at 2.5%, mainly due to smaller volume segments such as micro, small and private individuals.

• The company was promoted to the German Sax Index for small upper limits, which improved its visibility on the capital markets.

• Procdredit Holding AG (Xter: PCZ) is on the right track with its strategic growth and transformation strategy, whereby the scaling effects will probably occur soon.

• The Ecuadorian subsidiary is still below average and has a negative impact on the consolidated results of the group.

• The operating result decreased slightly due to a reduction in the net interest rate, which was influenced by lower political interest rates.

• The ratio of costs to income remains high at 70.8%, whereby the scaling advantages can still be realized.

• Due to the high deposit interest in many markets, there is permanent pressure on the net interest margins.

• Macroeconomic uncertainty, including the potential effects of US tariffs, carries risks to future performance.

Q: You have reported good growth of the net fee and commission income, some of which are due to FX transactions. Can you explain the drivers behind this growth and the restrictive factors for future growth? A: The growth is mainly due to volume effects, in particular from an increase in business customers. In some markets, we have recorded a slight slowdown of the transaction business due to the naval racing race, which led to a downward prices for transaction fees. We are working on limiting the effects of increased card transaction fees that we will not repeat this year. Unidientified_2

Q: What steps do you plan to increase your capital buffer in view of the expected regulatory changes? A: At the moment we have a comfortable buffer about the requirements and no specific measures are being processed. We have a tool kit of measures, including warranty programs and synthetic verbatim, which we can fall back on if necessary. We also consider diversifying our capital structure with new instruments. Unidientified_2

Q: How does traffic stand in your new branches and service points and match the expectations? A: We are satisfied with traffic in our new service points, which are intended to attract private customers in urban areas. The new branches have opened us for new geographical areas to enable shorter distances for the company's management and attract new customers. Unidientified_2