ProCredit Holding's (PCB's) FY25 results were slightly ahead of our expectations, with a net profit of €83.5m (3% above our forecast) and a return on equity (ROE) of 7.8% (vs our estimate of 7.5%). This was aided by robust fx-adjusted growth in the loan book and deposits of 13% y-o-y amid good traction in the structural transformation of PCB's loan book towards lower-volume client segments and solid growth of sight and savings deposits. Management proposed a dividend of €0.47 per share for FY25 in line with its targeted 33% payout ratio. It also maintained its medium-term ROE outlook at c 13-14%, now targeted until FY29. However, while management guides to further strong FY26 loan book growth of 12-15%, it expects a moderate ROE of 7% (vs our last forecast of 10.2%) and a still elevated cost-to-income ratio (CIR) close to the FY25 level of 73.4% (vs our last forecast of 65.6%). This is driven by continued investments in digitalisation and multiple effects, which are either one-time or were not affecting PCB's P&L in the past. PCB expects ROE to improve from FY27 onwards. We will revisit our forecasts in an upcoming outlook note on PCB.Den vollständigen Artikel lesen ...
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