ProCredit (PCZ) investor relations material

Executive summary

• Loan portfolio grew by 8% in H1 2026, surpassing EUR 8 billion, with strong expansion in micro, retail, and higher-yielding segments; deposits increased by 2.2% to EUR 9.3 billion.

• Operating income increased by 6.6–7% year-over-year, but consolidated profit for H1 2026 was EUR 38.5 million, impacted by higher expenses and loss allowances; cost-income ratio stable at 71.2%.

• Return on equity for H1 2026 was 6.7%, with return on tangible equity at 7.3%.

• Digital initiatives and mobile banking rollouts accelerated, enhancing customer experience and operational efficiency.

• Inaugural AT1 issuance of EUR 150 million in May 2026 strengthened capital structure and increased Tier 1 capital ratio by about 2 percentage points.

Financial highlights

• Net interest income rose by 11.6% year-on-year to EUR 191.3 million, driven by loan growth and margin expansion to 3.3%.

• Net fee and commission income declined by about EUR 3 million year-on-year, mainly due to euro introduction in Bulgaria and SEPA adoption.

• Operating costs increased by EUR 10.6 million, mainly from personnel and IT investments.

• Loss allowances for H1 2026 were EUR 9.0 million, with a cost of risk at 22 basis points.

• Cost-income ratio stable at 71.2%.

Outlook and guidance

• Loan growth for 2026 expected in the 12–15% range in core markets, with ROE guidance around 7% and cost-income ratio near 73.4%.

• Medium-term targets: loan portfolio over EUR 10 billion, ROE of 13–14%, and cost-income ratio of about 57%.

• Double-digit deposit growth anticipated in H2 2026, supported by strong SME and micro customer trends.

• Anticipated sale of ProCredit Bank Ecuador expected to negatively impact results by high single- to low double-digit millions.