Half Year 2026 ProCredit Holding AG Earnings Call Transcript
Key Points
- Loan portfolio grew 8% in H1 2026, crossing EUR8 billion for the first time, with strong growth in micro (23%) and retail (14.5%) segments.
- Net interest income increased 11.6% year-on-year, with net interest margin improving to 3.4% in Q2, driven by balance sheet transformation.
- Active client base grew by 27,000, with micro clients up 18% and retail up 8%, supported by digital initiatives and new mobile banking apps.
- Inaugural AT1 issuance of EUR150 million was oversubscribed, boosting Tier 1 capital ratio to 14.7% and supporting capital optimization.
- Ukrainian portfolio showed resilience with default rate at 2%, near pre-war levels, and Ecuador returned to positive contribution.
- Cost-income ratio remained elevated at 71.2%, with operating costs up 7% due to investments in digitalization and central functions.
- Net fee and commission income declined year-on-year due to euro introduction in Bulgaria and SEPA adoption, reducing FX and payment fees.
- Geopolitical risks (Ukraine war, Middle East tensions) increased downside risks, leading to additional portfolio-level provisions of EUR2.7 million.
- Elevated tax rates in Ukraine and Romania, along with reduced fee income, pressured profitability, with ROE guidance at 7%.
- Deposit growth was modest at 2.2% in H1, with competition for term deposits remaining a headwind, though management expects stronger H2.
Good afternoon from Frankfurt, and welcome to our call to discuss Procredit Group's results for the first half and second quarter of 2026.
My name is Eliuda Biboli. I'm the Chairperson of the Management Board of Procredit Holding, and I'm joined today once again by Christian Da Grossa, our Chief Financial Officer.
The slide deck accompanying this presentation is available on our website, and a recording of this call will be made available in the coming days.
Before we begin, let me draw also your attention to the customer disclaimer regarding forward-looking statements, which is included at the end of the presentation.
We expect today's earnings call to last approximately 30 minutes. Following our presentation, we will as always be happy to take your questions. I will focus on the key developments of the first half of 2026 and provide an update on the progress we are making against our strategic roadmap.
Christian will then take you through the Group's
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