Strategic shift yet to drive profitability

ProCredit Holding (PCB) continues to focus on its strategic priorities, including scaling its operations, digitalisation, balance sheet transformation and capital efficiency measures. These activities should contribute to an improvement in PCB’s net interest margin (NIM), cost-income ratio (CIR) and return on equity (ROE) over the medium term, with management reiterating its objective of a c 13–14% ROE, now targeted by FY29. However, sustained investments in digital infrastructure, coupled with one-time effects (including temporarily higher tax rates in Ukraine and Romania), will weigh on PCB’s near-term profitability, with management guiding to an ROE of around 7% in FY26 (FY25: 7.8%). PCB is in the process of selling a 95% stake in its...