ProCredit (PCZ) Q3 2025 earnings summary

Executive summary

• Loan portfolio grew 10.2% year-over-year FX-adjusted, with nearly 80% of growth from micro, small, and retail segments, and strong regional contributions, especially in Eastern and Southeastern Europe.

• Net profit was €58.2 million and ROE 7.4%, both impacted by a one-time Q3 increase in loss allowances, mainly from project finance exposures in renewable energy.

• Retail deposit base expanded significantly, with private client deposits rising 6.4% FX-adjusted and tens of thousands of new clients added.

• Strategic investments in staff, IT, digital transformation, and branch network underpin medium-term growth ambitions.

• Positive regional development, including resumed loan growth in Ukraine after investment guarantees.

Financial highlights

• Operating income for the nine months was €323.7 million, down 2.1% year-over-year, mainly due to a €19 million decline in interest income from cash and equivalents.

• Net interest income fell by €9.8 million year-over-year to €260.8 million; net fee and commission income rose by €3.8 million (5.6%) to €71.0 million.

• Cost-income ratio increased to 71.3% (from 65.7%), reflecting high investments, personnel, and refinancing costs.

• CET1 ratio remained robust and stable at 13.0%, well above regulatory minimums.

• Green loan portfolio reached €1.4 billion, about 19% of total loans.

Outlook and guidance

• Loan growth target for 2025 confirmed at around 12% FX-adjusted; CET1 ratio expected to remain near 13%.

• Return on equity for 2025 revised down to 7–8% from ~10% due to increased provisioning.

• Cost-income ratio expected at 72% for 2025, up from previous 70% guidance.

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