ProCredit Holding AG Updates 2024 Financial Guidance

ProCredit Holding AG, based in Frankfurt am Main, has revised its financial guidance for 2024. The company's management now anticipates a return on equity of approximately 10%, a reduction from the previous forecast of 10-12%. This adjustment accounts for an expected increase in the income tax rate for Ukrainian banks from 25% to 50% and challenging macroeconomic conditions in Ecuador.

The group's cost-income ratio guidance has also been updated. It is now estimated at around 66% due to accelerated strategic investments. These investments aim to expand the loan portfolio beyond EUR 10 billion, achieving economies of scale and a medium-term return on equity of 13-14%.

Additionally, ProCredit forecasts more than 10% growth in its loan portfolio, reflecting robust growth dynamics. The company's CET1 ratio and leverage ratio forecasts remain unchanged, expected to be over 13% and around 9%, respectively, by year-end 2024.