ProCredit Holding's (PCB's) Q325 results were affected by a downgrade in the risk classification of a sub-portfolio of exposures in project finance in South-Eastern Europe (SEE), leading to loss allowances of €16.6m in the quarter (vs a net release of €1.6m in Q324). This, together with revised assumption regarding the timing of provision release in project finance exposures (now not expected before 2026) and a revised cost-to-income ratio (CIR) expectation of c 72% (vs c 70% previously), led management to reduce its FY25e return on equity (ROE) guidance to 7-8% (vs c 10% previously). Meanwhile, PCB's fx-adjusted loan book growth of 10.2% in the first nine months of 2025 (9M25) puts the company on track to reach the 12% guided by management for FY25e. Importantly, the associated positive volume effects could soon outweigh PCB's negative repricing effects. PCB maintains its medium-term guidance of an ROE of c 13-14%, a CIR of c 57% and a loan portfolio of over €10bn, and a continuation of its dividend policy with a 33% payout ratio. Management expects the growth catalysts embedded in its strategy to start contributing to PCB's results in the coming quarters.Den vollständigen Artikel lesen ...
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