Frankfurt-based ProCredit Bank: pioneer for social investments in Eastern Europe!

Frankfurt-based ProCredit Bank: pioneer for social investments in Eastern Europe!

ProCredit Holding, listed on the SDax, has established itself as a major player in the financing of small businesses in Eastern and Southeastern Europe. With a clear focus on socially responsible banking, the company promotes economic development in these regions. The roots of ProCredit Holding go back to the 1968 student movement, which underlines the company's ethical principles.

The bank is heavily involved in training future bankers, which takes place in the Odenwald, between Frankfurt and Heidelberg. There, the young bankers not only learn the business processes, but also the company's social and ecological approaches. CEO Hubert Spechtenhauser emphasizes the importance of a zero-tolerance policy towards money laundering, which forms the ethical foundation of the bank.

Business model and strategies

ProCredit Holding acts as the parent company of a group of commercial banks that primarily serve small and medium-sized enterprises (SMEs). These banks operate not only in Southeastern Europe and Eastern Europe, but also in Ecuador and Germany. The company's strategic focus is on providing banking services to SMEs and expanding its green loan portfolio.

An important aspect of ProCredit's business model is the promotion of local production, particularly in agriculture. The focus on impact investing is also reflected in the direct banking strategy for private customers, which is intended to particularly appeal to the growing middle class. According to the 2020 annual report, the ProCredit Group's total assets were approximately EUR 7.3 billion, with customer deposits of approximately EUR 4.9 billion and a gross loan portfolio of approximately EUR 5.3 billion.

Green loans as a growth engine

ProCredit emphasizes its strategic focus on providing green loans to finance energy efficiency and renewable energy projects. In 2020, about 40% of the growth in the total loan portfolio came from these green loans. This initiative is part of a broader goal to not only position the company in a financially sustainable manner, but also to make a positive contribution to the environment.

ProCredit Holding is 100% owner of several banks, including ProCredit Bank in Albania, Bosnia and Herzegovina, Bulgaria, Germany, Ecuador, Georgia, Kosovo, North Macedonia, Moldova, Romania, Serbia and Ukraine. Its main shareholders, including Zeitinger Invest GmbH with 18.3% and KfW with 13.2%, ensure the bank additional trust and stability.

Overall, ProCredit Holding is characterized by a holistic approach aimed at ethical business practices, social responsibility and sustainable economic development. With a BBB rating from Fitch and close regulation by German and European regulators, the company is well positioned to further expand its influence in Eastern and Southeastern Europe.