ProCredit Announces Enhanced Business Strategy During Capital Markets Day

ProCredit Holding revealed its refined business strategy to broaden its footprint in South Eastern and Eastern Europe, aiming for a loan portfolio exceeding EUR 10bn. The announcement came during its second Capital Markets Day, highlighting plans for significant scaling effects and an improved return on equity (RoE) forecast of around 13%-14% in the medium term.

The bank seeks to bolster its position among MSMEs while attracting more private individuals by enhancing services and expanding market presence through investments in staff, IT, and marketing. Managers from ProCredit banks in Kosovo, Ukraine, and Bosnia & Herzegovina discussed local implications of this strategy, emphasizing the bank's commitment to responsible and green banking practices.

The ambitious growth targets include leveraging ProCredit's strong market position in the MSME segment and increasing efforts towards smaller SMEs. Additionally, the bank plans to enrich its offerings in the retail sector, aiming to grow its private client base by 150%. ProCredit strives to promote responsible banking and prevent over-indebtedness among consumers.

ProCredit's commitment to achieving net-zero emissions by 2050 or sooner was also highlighted, with plans to reduce Scope 1 and 2 greenhouse gas emissions by 42% by 2030. The bank intends to engage with clients to support their green investment efforts, aiming for green loans to comprise 25% of its portfolio.

The bank's updated strategy signifies a robust approach to growth, sustainability, and profitability, with a clear focus on responsible banking and environmental commitments. The Management Board anticipates these efforts to result in enhanced profitability and a stronger impact in the regions they serve.