ProCredit Holding AG ProCredit H1 2026: Strategy execution yields strong and targeted loan growth amid increased net interest margin

ProCredit H1 2026: Strategy execution yields strong and targeted loan growth amid increased net interest margin

• Loan portfolio grows by 8%, crossing the EUR 8 billion mark for the first time
• Active client base increases by 27,000 clients, with micro clients up nearly 18% and retail clients up 8%
• Volume growth and net interest margin expansion drive robust 7% growth in operating income
• Profit of the period amounts to EUR 38.5 million; cost-income ratio at 71.2%
• Inaugural AT1 issuance of EUR 150 million in May supports group capital structure optimisation

 

Frankfurt am Main, 13 August 2026 – ProCredit continued to deliver on its growth and transformation strategy in the first half of 2026. The strong loan growth was primarily driven by higher-yielding, lower-volume client segments. Net interest income grew by 11.6%, reflecting sustained business volume momentum and the strengthening net interest margin. New mobile retail banking apps have now been successfully rolled out across seven banks. The group result was in line with expectations, reflecting income growth, ongoing digitalisation investments, capital optimisation measures as well as short-term headwinds. The Management Board confirmed its outlook for 2026.

 

Loan and client growth in higher-yielding segments

In the first half of 2026, the group’s loan portfolio increased by 8.0% or EUR 617 million (H1 2025: 4.9% or EUR 347 million). Growth was particularly pronounced in the higher-yielding, lower-volume client segments that make up the strategic growth focus of the group.

Customer deposits increased by 2.2% or EUR 201 million (H1 2025: -0.9% or EUR 
-72 million). The micro and retail client segments accounted for the largest share of the increase, supported by the growing availability and use of our digital product offering.

The number of active clients across all segments increased by 8.2% or around 27,000 (H1 2025: 5.7% or around 16,300), including a 17.7% increase in micro clients.

 

Operating income growth driven by net interest income expansion

Net interest income increased by 11.6% year-on-year to EUR 191.3 million (H1 2025: EUR 171.3 million). The increase was driven by strong volume growth and a strengthening net interest margin, which improved by 6 basis points year-on-year to 3.3% (H1 2025: 3.2%) and by 18 basis points with respect to Q1 2026.

Net fee and commission income amounted to EUR 44.0 million, down 6.5% compared with the prior-year period (H1 2025: EUR 47.0 million). This development was broadly in line with the assumptions underpinning the group’s 2026 outlook, which anticipated lower fee and commission income following the introduction of the euro in Bulgaria.

Personnel and administrative expenses amounted to EUR 161.7 million, up 7.0% from the prior-year period (H1 2025: EUR 151.1 million), primarily driven by higher personnel expenses; this includes higher staff numbers in functions central to the execution of the retail and digital transformation strategy.

Loss allowances stood at EUR 9.0 million, which corresponds to cost of risk of 22 basis points. This is above the exceptionally low level recorded in the prior-year period (H1 2025: EUR 0.3 million, 1 basis point) and includes portfolio-level model provisions to account for a more challenging global macroeconomic environment. The quality of the loan portfolio has remained resilient, with the share of defaulted loans steady at 2.9% (Q4-2025: 3.0%).

Tax expenses increased by EUR 3.4 million to EUR 18.0 million (H1 2025: EUR 14.6 million), primarily reflecting the higher profit tax rate in 2026 for banks in Ukraine, as highlighted in the group’s 2026 outlook. Profit of the period amounted to EUR 38.5 million (H1 2025: EUR 47.0 million). This corresponds to a return on equity (RoE) of 6.7% (H1 2025: 9.0%) and a return on tangible equity (RoTE) of 7.3% (H1 2025: 9.3%), excluding the newly issued AT1 instruments and intangibles.

“The first half of 2026 demonstrates that our growth and transformation strategy is beginning to translate into measurable results beyond volume growth. Our targeted growth in higher-yielding, lower-volume client segments further increased balance sheet granularity and, most importantly, is contributing to net interest margin expansion. On the digital agenda, we remain well on track. We successfully launched the new mobile banking app in North Macedonia, Albania and Romania this year, marking important milestones in establishing our mobile-first retail banking franchise. The financial performance is in line with expectations. We remain disciplined in strategy execution and confirm our outlook for 2026,” said Eriola Bibolli, CEO of ProCredit Holding AG.

Inaugural AT1 issuance supports group capital structure optimisation; 2026 outlook confirmed

The CET1 ratio stood at 12.7% as of 30 June 2026. As a result of the successful inaugural AT1 issuance of EUR 150 million in May 2026, the ProCredit group’s Tier 1 capital ratio increased by approximately two percentage points to 14.7% as of 30 June 2026.

Based on the group’s performance in the first half of the year, the Management Board confirmed its full-year outlook for loan growth of 12-15% (for continued operations, assuming no significant foreign exchange volatility), group RoE of around 7% (including the expected effects from a planned divestiture of ProCredit Bank Ecuador during the year), cost-income ratio around the level of the previous year (FY 2025: 73.4%) and a CET1 capital ratio of around 13% at year-end.

The ProCredit group’s Interim Report as of 30 June 2026 is available as of today on the ProCredit Holding website under Investor Relations at: https://www.procredit-holding.com/en/investor-relations/reports-publications/financial-reports. The financial calendar for ProCredit Holding is available at: https://www.procredit-holding.com/investor-relations/financial-calendar.

H1 2026 results at a glance

in EUR m
Statement of financial position		30.6.2026		31.12.2025		Change
Loan portfolio		8,369.7		7,752.5		617.2
Deposits		9,337.3		9,136.2		201.1

Statement of profit or loss		1.1.-30.6.2026		1.1.-30.6.2025		Change
Net interest income		191.3		171.3		19.9
Net fee and commission income		44.0		47.0		-3.1
Operating income		227.2		213.1		14.1
Personnel and administrative expenses		161.7		151.1		10.6
Loss allowance		9.0		0.3		8.7
Profit of the period		38.5		47.0		-8.6
Key performance indicators		1.1.-30.6.2026		1.1.-30.6.2025		Change
Change in loan portfolio		8.0%		4.9%		3.0 pp
Cost-income ratio		71.2%		70.9%		0.3 pp
Return on equity (annualised)		6.7%		9.0%		-2.3 pp

		30.6.2026		31.12.2025		Change
Common Equity Tier 1 capital ratio		12.7%		13.1%		-0.4 pp
Additional indicators		30.6.2026		31.12.2025		Change
Loan portfolio to deposits ratio		89.6%		84.9%		4.8 pp
Net interest margin (annualised)		3.3%		3.2%		0.1 pp
Cost of risk (annualised)		22 bp		15 bp		7 bp
Share of defaulted loans		2.9%		3.0%		-0.1 pp
Stage 3 loans coverage ratio		41.3%		44.5%		-3.2 pp
Green loan portfolio		1,416.6		1,419.6		-0.2%

		1.1.-30.6.2026		1.1.-30.6.2025		Change
Return on tangible equity (annualised)*		7.3%		9.3%		-2.1 pp
* Return on tangible equity is the ratio of profit of the period less expected coupon payments and fees on additional equity components to the average equity attributable to ProCredit shareholders excluding intangible assets and additional equity components.

Contact:

Petra Vielhaber, Group Communications and Marketing, ProCredit Holding, tel.: +49 69 95 14 37 249, mobile: +49 171 686 5932, e-mail: petra.vielhaber@procredit-group.com

 

About ProCredit Holding AG

ProCredit Holding AG, based in Frankfurt am Main, Germany, is the parent company of the development-oriented ProCredit group, which consists of commercial banks for micro, small and medium enterprises (MSMEs) as well as private individuals, fostering economic, ecological and social development. In addition to its operational focus on South Eastern and Eastern Europe, the ProCredit group is also active in South America and Germany. The company’s shares are traded on the Prime Standard segment of the Frankfurt Stock Exchange. The main shareholders of ProCredit Holding AG include Zeitinger Invest GmbH, KfW, the Dutch DOEN Participaties BV, the European Bank for Reconstruction and Development and ProCredit Staff Invest GmbH & Co. KG. As the group’s superordinated company according to the German Banking Act and as the parent financial holding company of the ProCredit financial holding group, ProCredit Holding AG is supervised on a consolidated level by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the German Bundesbank. For additional information, visit: https://www.procredit-holding.com/.

Forward-looking statements

This press release contains statements relating to future business development and/or future financial performance and/or future actions and/or developments affecting ProCredit Holding (forward-looking statements). Such forward-looking statements are based on the Management of ProCredit Holding’s current expectations and specific assumptions, which are partly beyond the control of ProCredit Holding. The forward-looking statements are therefore subject to a multitude of uncertainties. Should one or more of these uncertainties materialise, or should underlying expectations or assumptions prove inapplicable, then the actual conditions (both negative and positive) may differ significantly from those expressed or implied in the forward-looking statement. Beyond mandatory legal requirements, ProCredit Holding does not undertake any obligation to update these forward-looking statements or to correct them.