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ProCredit Holding AG
(XETRA:PCZ)
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Rating:57Neutral
Price Target:
€8.50
▲(5.33% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weaker financial quality signals—especially sustained negative operating/free cash flow and a sharp increase in debt—despite earlier profitability improvement. Valuation is a meaningful positive (low P/E and high dividend yield), and the earnings call supports the medium-term case with reiterated guidance, margin improvement, and stronger capital, but technical indicators remain weak-to-neutral, limiting near-term momentum.
Positive Factors
Loan Growth and Client Expansion
Broad loan growth across core markets and rising active customers support recurring interest income and deepen the group’s SME and retail relationships. This expands the franchise and provides a durable base for management’s 12–15% full-year loan-growth guidance.
Negative Factors
Higher Debt and Weak Cash Generation
The sharp increase in debt coincides with persistent negative operating and free cash flow, indicating weaker internal funding capacity. Greater reliance on external funding can raise refinancing sensitivity and reduce financial flexibility if credit conditions or profitability deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan Growth and Client Expansion
Broad loan growth across core markets and rising active customers support recurring interest income and deepen the group’s SME and retail relationships. This expands the franchise and provides a durable base for management’s 12–15% full-year loan-growth guidance.
Read all positive factors
ProCredit Holding AG (PCZ) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€529.50M
Dividend Yield5.32%
Average Volume (3M)46.64K
Price to Earnings (P/E)6.9
Beta (1Y)1.15
Revenue Growth5.93%
EPS Growth-20.09%
CountryDE
Employees4,609
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.28
Shares Outstanding58,898,490
10 Day Avg. Volume57,033
30 Day Avg. Volume46,643
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.46
Price to Sales (P/S)0.66
P/FCF Ratio-3.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€16.00Price Target Upside98.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)€484.05M
ProCredit Holding AG Business Overview & Revenue Model
Company Description
ProCredit Holding AG & Co. KGaA, along with its group entities, delivers a full spectrum of commercial banking solutions, catering to both small and medium-sized businesses (SMEs) and individual clients. Its operations span across Europe, South Am...
How the Company Makes Money
ProCredit Holding AG makes money primarily through the earnings generated by its subsidiary banks, with income largely driven by traditional banking activities. The core revenue stream is net interest income: the group collects deposits and other ...
ProCredit Holding AG Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive operating and strategic progress narrative: strong loan growth (H1 +8%), marked expansion in higher-yielding retail/micro segments (micro loans +46% YoY, retail +29% YoY), sustained net interest income momentum (+11.6% YoY; Q2 NII +~15% YoY) and a successful EUR 150m AT1 issuance that improved capital ratios. These positives are balanced against remaining challenges — an elevated cost-income ratio (71.2%), modest overall deposit growth in H1 (2.2%) versus loan growth, declining fee income (–EUR 3m YoY) due to euro introduction and SEPA adoption, and cautious additional provisioning given geopolitical risks. Management provided confidence on sustaining margin improvements and achieving FY targets (12%–15% loan growth; 7% RoE guidance), while acknowledging ongoing macro and tax headwinds.Positive Updates
Strong Loan Growth and Record Portfolio
Loan portfolio grew 8% in H1 2026, crossing EUR 8.0 billion for the first time. Growth was broad-based with particularly strong contributions from Georgia, Kosovo, Bosnia, Bulgaria, Romania and Ukraine. Management confirms FY2026 loan growth guidance of 12%–15%.
Negative Updates
High Cost-Income Ratio and Rising Costs
Cost-income ratio remained elevated at 71.2% in H1. Operating costs rose by around EUR 10.6 million and the cost base increased ~7% year-on-year, driven by higher personnel expenses (including central staff increases) and higher administrative expenses (software and marketing).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Loan Growth and Record Portfolio
Loan portfolio grew 8% in H1 2026, crossing EUR 8.0 billion for the first time. Growth was broad-based with particularly strong contributions from Georgia, Kosovo, Bosnia, Bulgaria, Romania and Ukraine. Management confirms FY2026 loan growth guidance of 12%–15%.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of loan growth of 12–15% in core markets and a 7% RoE for the year (with short‑term headwinds from the expected Ecuador divestment, higher taxes in Ukraine and Romania and lower fee income from Bulgaria’s euro adoption), said it is confident of double‑digit customer deposit growth in H2, and set medium‑term targets to grow the loan book beyond EUR 10bn, lift RoE to ~13–14% and move the cost‑income ratio toward ~57%; the outlook is supported by the May AT1 issuance of EUR 150m (initial coupon 8%, reset in Dec 2031) that increased Tier‑1 by ~2pp pro‑forma. Management pointed to strong H1 momentum underpinning guidance: loans +8% to >EUR8bn, active clients +~27,000 (micro active +~18%, retail active +8%), higher‑yield segments now 49% of loans, net interest income +11.6% YoY (~EUR20m, Q2 NII EUR99m), NIM Q2 3.4% (+18bps QoQ, +6bps YoY), H1 profit EUR38.5m, RoTE H1 7.3%, H1 cost‑income ratio 71.2%; Q2 loss allowances €6.4m (cost of risk 31bps) and management overlays ~€48.8m (~25% of provisions).ProCredit Holding AG Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
52
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 507.30M | 750.83M | 692.08M | 625.68M | 478.44M | 390.74M |
| Gross Profit | 237.16M | 497.91M | 461.15M | 432.38M | 358.75M | 302.32M |
| EBITDA | 100.45M | 130.32M | 167.82M | 187.36M | 152.33M | 125.21M |
| Net Income | 74.98M | 83.50M | 104.31M | 113.37M | 16.50M | 79.64M |
Balance Sheet | ||||||
| Total Assets | 11.93B | 11.60B | 10.75B | 9.75B | 8.83B | 8.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.83B | 2.17B | 2.16B | 2.35B | 1.94B | 1.55B |
| Total Debt | 1.39B | 1.32B | 377.80M | 313.03M | 309.98M | 460.62M |
| Total Liabilities | 10.84B | 10.52B | 9.70B | 8.77B | 7.96B | 7.36B |
| Stockholders Equity | 1.08B | 1.07B | 1.06B | 983.79M | 869.43M | 856.31M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -141.13M | -217.78M | 1.41M | 545.71M | 115.66M |
| Operating Cash Flow | 0.00 | -99.77M | -176.75M | 29.26M | 566.94M | 133.15M |
| Investing Cash Flow | 0.00 | -823.09M | -35.98M | -22.42M | -12.48M | -13.44M |
| Financing Cash Flow | 0.00 | 770.65M | 54.85M | 1.01B | -1.30M | -36.01M |
ProCredit Holding AG Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €45.38B | 14.35 | 9.51% | 2.73% | -2.63% | 20.12% | |
69 Neutral | €59.48B | 8.41 | 10.23% | 3.14% | -3.35% | 8.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | €529.50M | 6.90 | 6.97% | 5.32% | 5.93% | -20.09% | |
54 Neutral | €503.08M | 6.66 | 5.80% | 3.87% | 13.67% | 30.29% | |
49 Neutral | €144.47M | -248.92 | -0.13% | 2.89% | ― | ― | |
43 Neutral | €415.26M | -8.02 | -0.96% | 4.86% | -20.56% | 76.04% |
* Financial Sector Average
DE:PCZ
ProCredit Holding AG
8.83
0.04
0.51%
DE:DBK
Deutsche Bank AG
31.87
2.83
9.75%
DE:CBK
Commerzbank
40.31
8.77
27.82%
DE:PBB
Deutsche Pfandbriefbank
3.09
-1.96
-38.79%
DE:GLJ
GRENKE AG
10.86
-5.54
-33.79%
DE:UBK
UmweltBank AG
3.46
-0.53
-13.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.