ProCredit share purchase: Boards of directors put their trust in strong growth!

ProCredit share purchase: Boards of directors put their trust in strong growth!

On May 14, 2025, a dynamic market will emerge for ProCredit Holding, as current developments show. On May 9, 2025, several members of the Executive Board and Supervisory Board purchased shares in the company, which was announced the following Tuesday. Among the buyers are Dr. Gian Marco Felice, who acquired 344 shares at €10.85 each, and Eriola Bibolli with 366 shares. Jovanka Joleska Popovska from the supervisory board also participated by purchasing 139 shares. Further purchases were made by Christoph Beeck, Georgios Chatzis and Christian Dagrosa. These purchases demonstrate management's confidence in the company's future development.

ProCredit shares are currently trading at €10.95, which is only 3.5% below the annual high of €11.35. The stock has gained over 41% since the beginning of the year, although it fell 2.67% on the day the investments were published. The high volatility of the share is stated at 48%, which underlines the uncertainties in the market. The next quarterly figures are crucial for market reactions and investor confidence.

Growth and performance of the ProCredit Group

ProCredit Group achieved record growth in lending business in 2024. With an increase in loans of 784 million euros, an increase of 12.6%, the company achieved the strongest results in its history. In addition, deposits increased by 1.0 billion euros (14.3%), particularly from private customers. The total result for 2024 was 104.3 million euros, with a return on equity (RoE) of 10.2%.

Nevertheless, a temporary increase in the cost-income ratio to 68.1% was recorded, due to strategic investments in personnel, IT, marketing and the expansion of the branch network. An RoE of around 10% is forecast for 2025, while a guidance of 13 to 14% has been confirmed in the medium term. The board also plans to propose a dividend of 0.59 euros per share for the 2024 financial year.

Market development and future outlook

Loan portfolio growth was primarily driven by microcredit and small businesses as well as retail customers, with two-thirds of the growth coming from small-volume loans. In 2024, the group served approximately 75,000 companies in Southeast and Eastern Europe. Operating income rose by 31.8 million euros (7.7%) to 444.3 million euros. Particularly noteworthy is the increase in interest income by EUR 21.0 million (6.2%). Personnel and administrative expenses increased by 55.8 million euros (22.6%), which is due to the increase in the number of employees by 738 to a total of 4,689, as well as the opening of six new branches and 41 service points.

The group was able to reduce the loan default rate to 2.3%, a decrease of 2.7%. Additionally, provisions for losses showed a net release of €5.2 million, resulting in a risk expense of -8 basis points. As of December 31, 2024, the CET1 capital ratio was 13.1%.

In summary, ProCredit Holding shows that it is well positioned with its strategic investments and continuous growth. However, expectations for the coming quarterly figures and future development remain high. ProCredit Group will publish its 2024 Annual Report on the Investor Relations website and the Impact Report Package will be available on May 20, 2025.