EQS-News: 9-month result 2025: ProCredit delivers strong and granular business growth; quarterly result impacted by one-time increase in loss allowance

9-month result 2025: ProCredit delivers strong and granular business growth; quarterly result impacted by one-time increase in loss allowance

• Strong 10.2% loan growth (adjusted for foreign exchange effects); around 80% of this increase driven by granular, lower-volume client segments
• Group result of EUR 58.2 million for 9M 2025 or 7.4% return on equity
• Positive quarter-on-quarter operating income trend supported by net interest margin improvement
• Loss allowance of EUR 16.6 million in Q3 relating largely to one-off reassessment of sub-portfolio in project finance
• Updated FY 2025 guidance for return on equity of 7-8% and cost-income ratio of around 72%

 

Frankfurt am Main, 13 November 2025 – The German impact banking group ProCredit, which focuses on South Eastern and Eastern Europe, continued to make substantial progress in executing its growth and transformation strategy during the third quarter of 2025 (Q3). The group recorded strong and well-diversified business growth, marked by a 10.2%[1] increase in its loan portfolio since the beginning of the year. Deposits grew by 6.4%¹ year-to-date, with strong growth of 4.9%¹ achieved in Q3 alone. On the income side, positive quarter-on-quarter dynamics in the group’s underlying income drivers started to become visible. Loss allowance of EUR 16.6 million booked in Q3 relating foremost to a sub-portfolio of exposures in project finance resulted in an increased cost of risk for the nine-month (9M) period of 31 basis points. In response, on 28 October 2025, the group’s return on equity guidance for FY 2025 was updated to a range of 7-8%. Despite the strong loan growth since the beginning of the year, the CET1 ratio remained steady at a solid level of 13.0%.

 

“Our nine-month results demonstrate that we are continuing to make progress in accelerating growth and re-shaping our balance sheet towards a more granular structure. We achieved broad-based and granular growth in both loans and deposits, driven by sustained demand, positive market dynamics, and the continued execution of our strategy for growth and digital transformation. At the same time, we see our balance sheet transformation beginning to yield positive structural results, including a second consecutive quarter-on-quarter increase in our net interest margin,” said Hubert Spechtenhauser, Chairman of the Management Board of ProCredit Holding AG.

Strong business growth with positive trends in revenues

During the first nine months of 2025, the group’s loan portfolio grew by EUR 556 million (9M 2024: EUR 557 million). Excluding the effects from local currency depreciation, loans grew by a strong EUR 712 million and reflected broad-based expansion across all client segments and most markets, with particularly strong momentum in lending to micro and small enterprises as well as private clients.

Deposits increased by EUR 329 million (9M 2024: EUR 566 million); however, adjusted for currency effects, deposit growth exceeded the EUR 500 million mark. The largest part of these inflows came from private clients.

Net interest income for the first nine months amounted to EUR 260.8 million, with a net interest margin of 3.2% (9M 2024: EUR 270.6 million and 3.6%). On quarterly level, net interest income showed a further slight improvement compared to Q2. This was supported by strong loan growth and consolidating margins, despite ongoing high funding costs related to local market deposit rates.

Net fee and commission income continued its positive trend, increasing by EUR 3.8 million or 5.6% year-on-year to EUR 71.0 million (9M 2024: EUR 67.2 million), mainly due to strong development of transaction income and foreign exchange business. Net other operating income contributed EUR -8.1 million (9M 2024: EUR -7.1 million) to the overall result.

Personnel and administrative expenses stood at EUR 230.8 million (9M 2024: EUR 217.2 million), growing 6.3% year-on-year. This increase was mainly driven by the strong expansion of staff in 2024, in line with the group’s strategic growth initiatives. The cost-income ratio for the first nine months of 2025 stood at an elevated level of 71.3% (9M 2024: 65.7%) and reflected above all the cost increases from strategic growth investments and the prevailing market rates on deposits.

Robust portfolio quality, despite headwind from elevated loss allowance in Q3

The quality of the loan portfolio remained strong, with the share of defaulted loans at a continued low level of 2.1% (Q4 2024: 2.3%). For the nine-month period, the loss allowance amounted to EUR 16.9 million, corresponding to a cost of risk of 31 basis points (9M 2024: EUR 4.1 million or 8 basis points). The main driver for the elevated loss allowance was the EUR 16.6 million booked in the third quarter, relating predominantly to a one-off reassessment of a sub-portfolio of exposures in project finance.

“Prudent risk management is and remains at the centre of ProCredit’s core strengths. Although the temporarily elevated loss allowance in Q3 has impacted our 2025 ambitions, we consider it a one-off in nature. Our portfolio quality remains strong and is based on long-term client relationships, well-trained staff and effective risk management. Having said that, it is important to note that with our provisioning in Q3, we do not expect material additional provisioning for the remainder of the year,” Hubert Spechtenhauser noted.

The group’s CET1 capital ratio stood at 13.0% as of 30 September 2025 (Q4 2024: 13.1%), reflecting the solid capital position despite the strong balance-sheet growth.

Updated outlook for 2025, reaffirming medium-term ambition

Based on the performance year to date and the expectations for the fourth quarter, the Management Board has confirmed the guidance for full-year 2025 loan portfolio growth of around 12% (adjusted for foreign exchange effects) and a CET1 ratio of around 13% at year-end. The return on equity is now expected to be between 7% and 8% (previously: around 10%), considering primarily a cost of risk above the previous assumption of a “continued low cost of risk”. The cost-income ratio is expected to be around 72% (previously: around 70%).

Against the backdrop of the strong business growth and strategic progress in all key areas of the group’s scaling strategy, the Management Board reaffirms the medium-term outlook of a return on equity of around 13-14% and a cost-income ratio of around 57%. In this outlook, the contribution of ProCredit Bank Ukraine to return on equity at group level is largely neutral. The end of the war and subsequent reconstruction efforts with support by the Western community could provide an additional upside potential of around 1.5 percentage points to this guidance for return on equity.

The ProCredit group’s Quarterly Report as of 30 September 2025 is available as of today on the ProCredit Holding website under Investor Relations, at: https://www.procredit-holding.com/en/investor-relations/reports-publications/financial-reports. The financial calendar for ProCredit Holding can be found under Investor Relations, at:  https://www.procredit-holding.com/investor-relations/financial-calendar.

 

9M 2025 results at a glance

in EUR m
Statement of financial position	30.09.2025	31.12.2024	Change
Loan portfolio	7,566.0	7,010.0	556.0
Deposits	8,620.7	8,291.4	329.4

 

Statement of profit or loss	1.1.-30.09.2025	1.1.-30.09.2024	Change
Net interest income	260.8	270.6	-9.8
Net fee and commission income*	71.0	67.2	3.8
Operating income	323.7	330.7	-7.0
Personnel and administrative expenses	230.8	217.2	13.6
Loss allowance	16.9	4.1	12.8
Profit of the period	58.2	84.8	-26.6

 

Key performance indicators	1.1.-30.09.2025	1.1.-30.09.2024	Change
Change in loan portfolio	7.9%	9.0%	-1.0 pp
Cost-income ratio	71.3%	65.7%	5.6 pp
Return on equity (annualised)	7.4%	11.3%	-3.9 pp

 

	30.09.2025	31.12.2024	Change
CET1 ratio (fully loaded)	13.0%	13.1%	0.0 pp

 

Additional indicators	30.09.2025	31.12.2024	Change
Deposit-to-loan portfolio ratio	113.9%	118.3%	-4.3 pp
Net interest margin (annualised)	3.2%	3.5%	-0.3 pp
Cost of risk (annualised)	31 bp	-8 bp	39 bp
Share of defaulted loans	2.1%	2.3%	-0.2 pp
Stage 3 loans coverage ratio	50.0%	49.9%	0.2 pp
Green loan portfolio (in EUR m)	1,411.8	1,354.6	4.2%

* Previous year figures have been adapted to the current disclosure structure.

 

Contact:
Petra Vielhaber, Group Communications, ProCredit Holding, tel.: +49 69 95 14 37 249, mobile: +49 171 686 5932, e-mail: Petra.Vielhaber@procredit-group.com

 

About ProCredit Holding AG

ProCredit Holding AG, based in Frankfurt am Main, Germany, is the parent company of the development-oriented ProCredit group, which consists of commercial banks for micro, small and medium enterprises (MSMEs) as well as private individuals, fostering economic, ecological and social development. In addition to its operational focus on South Eastern and Eastern Europe, the ProCredit group is also active in South America and Germany. The company’s shares are traded on the Prime Standard segment of the Frankfurt Stock Exchange. The main shareholders of ProCredit Holding AG include Zeitinger Invest GmbH, KfW, the Dutch DOEN Participaties BV, the European Bank for Reconstruction and Development and ProCredit Staff Invest GmbH & Co. KG. As the group’s superordinated company according to the German Banking Act and as the parent financial holding company of the ProCredit financial holding group, ProCredit Holding AG is supervised on a consolidated level by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the German Bundesbank. For additional information, visit: https://www.procredit-holding.com/
 

Forward-looking statements

This press release contains statements relating to future business development and/or future financial performance and/or future actions and/or developments affecting ProCredit Holding (forward-looking statements). Such forward-looking statements are based on the Management of ProCredit Holding’s current expectations and specific assumptions, which are partly beyond the control of ProCredit Holding. The forward-looking statements are therefore subject to a multitude of uncertainties. Should one or more of these uncertainties materialise, or should underlying expectations or assumptions prove inapplicable, then the actual conditions (both negative and positive) may differ significantly from those expressed or implied in the forward-looking statement. Beyond mandatory legal requirements, ProCredit Holding does not undertake any obligation to update these forward-looking statements or to correct them.

 

 

^[1] adjusted for foreign exchange effects