ProCredit: Executive buys shares despite falling price!

ProCredit: Executive buys shares despite falling price!

On May 14, 2025, it was announced that senior individuals at ProCredit, a major financial services provider, made their own share purchases on May 9, 2025. Christoph Beeck, a member of the board, purchased a total of 331 ProCredit securities at a price of EUR 10.85 each. This transaction was reported to BaFin on May 13, 2025. Despite the positive news about the internal purchases, ProCredit's share price fell by 1.40 percent to EUR 10.65 in Frankfurt stock exchange trading. On the reporting day, the share even fell by 3.10 percent to EUR 11.00. The turnover on that day was 785 ProCredit shares, and the company's total market value is 668.50 million euros. There are currently 58,898,500 securities available in free trading.

This mention of internal transactions comes at a time when ProCredit has a successful financial performance. According to a report from the ProCredit group, the company achieved a financial result of EUR 113.4 million and a return on equity of 12.2% in 2023. Operating income increased by 21% to EUR 412.5 million compared to EUR 339.8 million in 2022. This is also reflected in an improved cost-income ratio of 59.9%, an increase of 4.1 percentage points.

Growth and dividend policy

In 2023, ProCredit Group recorded loan growth of 1.9% as well as impressive deposit growth of 15.3%, resulting in a total of EUR 965 million. The CET1 ratio stands at 14.3%, while the cost of risk normalizes to 25 basis points, down sharply from 174 basis points previously in 2022. This underlines the company's solid financial foundation and healthy growth.

ProCredit also plans to pay a dividend of EUR 0.64 per share, which accounts for a third of the group's earnings. The Management Board has a positive outlook for the coming year, expecting a return on equity of 10 to 12% and an increase to 13 to 14% in the medium term. There is also the goal of expanding the loan portfolio to over EUR 10 billion, with the target deposit-to-loan ratio of 120%.

Market and risk analysis

Analysis of defaulted loans shows that the share fell to 2.7%, compared to 3.3% in 2022. In Ukraine, the share fell from 11.9% to 7.3%, signaling a clear trend towards improving loan quality. Net interest income increased by 27.4% to EUR 337.2 million in the same period, with a net interest margin of 3.6%, increasing by 53 basis points.

With the upcoming strategic changes and the Capital Markets Day on March 21, 2024, where the new strategy will be presented, the ProCredit Group is demonstrating its focus on sustainable growth and profitability in the coming years.