ProCredit (PCZ) Q4 2025 earnings summary

Executive summary

• Achieved strong operational progress in 2025, with loans and deposits both increasing by 13.1% FX-adjusted, mainly from SME, micro, and retail segments, reflecting successful execution of the strategic transition.

• Group net result reached EUR 83.5 million, corresponding to a 7.8% ROE, in line with updated FY 2025 guidance but below initial assumptions due to digitalisation investments and elevated risk costs.

• Digital transformation accelerated, with core digital services and mobile-first initiatives rolled out in Kosovo and other countries, and further launches planned for 2026.

• Confirmed intent to divest Ecuador operations, with transaction expected to impact 2026 profitability.

• Proposed dividend of EUR 0.47 per share for AGM in June, representing one-third of consolidated result.

Financial highlights

• Loan book grew 13.1% FX-adjusted to EUR 7.8bn, with micro, small, and retail lending accounting for about 80% of new volumes.

• Deposits rose 13.1% FX-adjusted to EUR 9.1bn, with over 60% of new deposits from sight and savings accounts.

• Net interest income for FY 2025 was EUR 353.0 million (down 1.5% YoY), with a net interest margin of 3.2%.

• Net fee and commission income increased by 5.5% YoY to EUR 96.6 million, led by payments and FX business.

• Cost-income ratio elevated at 73.4% due to digitalisation investments and higher personnel/IT costs.

Outlook and guidance

• 2026 guidance: loan growth of 12–15% and ROE around 7%, with profitability and cost efficiency broadly in line with 2025.

• Medium-term targets reaffirmed: ROE of 13–14% by 2029, cost-income ratio to improve to ~57%.

• Digital and capital optimization investments to weigh on short-term ROE but enable long-term growth.

• Dividend proposal of EUR 0.47 per share for FY 2025, in line with policy.