An impact-oriented group of commercial banks for MSMEs and private clients in South Eastern and Eastern Europe
Capital Markets Day, 21 March 2024
Today's agenda
13.00 | ProCredit strategy and impact update followed by Q&A |
Strategic update | Hubert Spechtenhauser | |
ProCredit impact | Dr Gian Marco Felice | |
Positioning and growth | Eriola Bibolli | |
Profitability | Christian Dagrosa | |
15.00 | Break |
15.30 | Round table 'ProCredit on the ground' |
ProCredit Banks Bosnia & Herzegovina, Kosovo and Ukraine | |
16.30 | Conclusion of event |
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024
- Strategic update
Hubert Spechtenhauser,
Chairman of the management board - ProCredit impact
- Positioning and growth
- Profitability
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024
Strategic update | what's new?
Broadened ProCredit footprint for enhanced positive impact
Positioning
- Broadened and sharpened impact definition
- Universal bank for MSME and PI clients
- Strengthened position as attractive bank for retail clients
Growth
- Attain critical size and strong SME market position in each country
- Substantially grow # of clients (50% in SME; 150% in PI)
- Loan portfolio > EUR 10bn
Profitability
- Improved balance sheet structure with more granularity of assets & liabilities
- Investments in staff, IT & marketing to enable operating leverage & scaling effects
- Enhance medium-term RoE to 13 - 14%
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024 | 3 |
Raison d'être
- As a development-oriented commercial banking group, we strive to balance financial sustainability with comprehensive positive impact of our business '' on the economies, environment and societies of our countries of operation
Broader sense
of responsibility
responsibility towards the | Ethical |
societies in which we operate | behaviour |
Cultivate professionalism
and integrity among staff respect to all fellow human beings
social justice
protecting the | fostering democracy |
environment | and free speech |
Positive contribution to ESG transition in our countries
Social impact | Environmental impact | ||||||||||
KPIs | Jobs Creation | Green lending |
Investment Loans | ||
Net zero | ||
Gender Equity |
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024 | 4 |
ProCredit regional focus in context of EU accession
Intact and strong GDP growth outlook for SEE/EE of 3.8%
(p.a. in 2025-28 vs. 1.6% for Euro area)
Continued EU accession
(currently 8 countries status as candidates for EU membership)
>€100bn IFI investment into
SEE/EE
(EIB and EBRD, cumulative until 2022)
EU member states
EU candidates / EU applicants
ProCredit countries of operation in
SEE/EE
ProCredit is focused on an attractive and highly relevant region from all relevant perspectives - in terms of economic relevance and growth, political significance and impact potential
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024 | 5 |
Before strategic update: focused positioning on SMEs
ProCredit target customers
(by client exposure)
Business focus
Business
Micro
Very Small:
Up to € 50k
Non-strategic
- 2% of loans
- Non-targeted,rather opportunistic approach
SME | |
Small: | Medium: |
€ 50 - 500k | > € 500k |
Core segment
- 88% of loans
- 'Hausbank' concept serving all SMEs banking needs
- Strong growth track record with client group: €2bn loan growth in four years before Ukraine War (2017 - 2021)
- Client approach mainly through Business Client Advisors
Retail
Private individuals
Business owners,
high-/medium income
Highly restrictive
- <10% of loans, mainly mortgage
- Limited to business owners or middle- and high-income private individuals
- High-quality,restrictive offer
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024 | 6 |
Strong group positioning for MSME and PI clients
ProCredit target customers
(by client exposure)
Strategic update
- additional growth areas
Business
Micro
Very Small:
Up to € 100k
STRONG GROWTH
- Strong expansion in client group
- Direct banking approach
- Strong impact rationale
SME | |
Small: | Medium: |
€ 100 - 750k | > € 750k |
CONTINUE TO EXPAND MARKET SHARE
- Continue successful growth track as Hausbank for SME clients
- Focus growth on smaller business clients, converting into medium-sized companies
- Expand via branches in Tier 2 economic hubs and stronger syndication of SME services
(POS, e-commerce, trade finance)
Retail
Private individuals
BROAD RETAIL APPROACH
- Broader, less restrictive retail approach
- Universal bank for PI customers
- Focus on social responsibility
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024 | 7 |
Targeting ambitious client and balance sheet growth
'Strategic
update'
(Mar-24)
Strategic investments in growth catalysts
(people, marketing, IT, branches)
Client growth by ~1.5x in SME and ~2.5x in PI
Loan growth to >€10bn and B/S transformation
Leading bank for MSMEs in SEE/EE
Critical size and
strong MSME market
position in each
market
Attractive bank for private individuals
Increased group footprint, amplifying the group's positive impact & strengthened group resilience through a balanced approach and self-funded local bank growth
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024 | 8 |
Medium-term RoE outlook
~ 13 - 14%
~ 12%
Increased outlook for group profitability
Scale and B/S transformation
- Margins to be strengthened from both sides of the balance sheet
- Expansion of client base across all segments to support non-interest income
Continued strong focus on cost efficiency
- Strategic investments in growth catalysts in 2024/25
- Underlying cost efficiency to remain high; target medium-termcost-income ratio at ~57%
Previous New
Moderate assumptions for PCB Ukraine
- Fully operational and ringfenced
- Moderate group contribution assumed from 2024 onwards
unchanged
upside potential
~1.5 ppt
on medium-term
group RoE
ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024
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Disclaimer
ProCredit Holding AG & Co. KGaA published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 April 2024 14:50:06 UTC.