ProCredit Holding AG (PCZ) Q3 2026 Earnings Report

The call was predominantly positive. Strong loan and client growth, net interest income and margin expansion, improving operating leverage, stronger profitability, stable early credit performance, upgraded guidance and solid capital levels significantly outweighed the stated challenges. The main negatives were lower fee income, higher operating costs, the timing shift and valuation effects related to the Ecuador divestment, elevated geopolitical and provisioning risks, and tax-rate uncertainty.

For 2026, ProCredit narrowed continuing-operations loan portfolio growth guidance to “the upper end of the previous range at 14% to 15%,” expects the cost/income ratio to be “2 to 3 percentage points better than initially anticipated,” maintains return on equity guidance at “around 7%,” expects the CET1 ratio to be “between 12.5% and 13% at year-end,” and retains a dividend payout assumption of “1/3 of consolidated profit”; completion of the ProCredit Bank Ecuador divestment is now expected in 2027, with the negative valuation effect expected in 2026 and the positive currency translation reserve effect expected in 2027. Excluding special effects, underlying full-year ROE is expected to come in “slightly north of” the 7.9% reported for the first 9 months, while 2027 lending is expected to show “similar growth rates,” the year-to-date tax-rate run rate should apply to 2027, Ukraine’s tax rate is expected to remain “around 50%,” and there is potential for an uptick in Bulgaria; through 2029, the Group aims to grow the loan portfolio “beyond EUR 10 billion,” raise ROE to “around 13% to 14%,” and move the cost/income ratio “towards 57%.”