Well-positioned for Ukraine's reconstruction

ProCredit Holding’s (PCB’s) financial year 2024 was characterised by continued execution of its updated strategy; it made solid progress in terms of loan book expansion, scaling up its smaller banks, growing the share of loans to low-volume clients (micro and small enterprises, and private clients), as well as increasing the deposit-to-loan ratio. Continued strategic investments in IT, marketing, headcount expansion and selected expansion of PCB’s branch network led to a c 23% increase in operating expenses, which management expects to stabilise in H225. This, together with a contracting net interest margin (NIM) due to a cyclical repricing of assets, translated into a decline in return on equity (ROE) from 12.2% in FY23 to a still robus...