PROCREDIT HOLDING AG & CO. KGAA (FRA:DE000622) ProCredit Holding (PCZ): Well-positioned for further loan book expansion

Transparency directive : regulatory news

05/05/2021 08:00

ProCredit Holding (PCZ): Well-positioned for further loan book expansion

05-May-2021 / 07:00 GMT/BST


London, UK, 05 May 2021


ProCredit Holding (PCZ): Well-positioned for further loan book expansion

ProCredit Holding (PCB) posted a c 21% EPS decline to €0.70 in FY20, but we believe it has navigated the COVID-19 crisis well, with strong 9.5% y-o-y growth in the loan book (driven mainly by investment and green loans), a 57bp cost of risk in FY20 (below its closest peers) and a solid capital base with the end-2020 CET-1 ratio at 13.3% (vs a regulatory requirement of 8.2%) and total capital ratio of 14.7% (12.6%). We believe the bank is well-positioned to continue growing its loan book by c 10% pa, in line with its target. Gradually declining loss allowances, and fee and commission income rebounding to pre-COVID-19 levels should help PCB reach its mid-term ROE target of 10%, which we model in FY23.


We have valued PCB's shares using a P/BV-ROE approach. Our fair P/BV multiple of 0.90x used in the valuation is the average of a multiple derived from a capital asset pricing model of 1.05x and a ratio implied by a regression line based on FY20 figures for peers and PCB of 0.75x. We arrive at a fair value of €11.20 per share (vs our previous fair value of €8.00/share), mostly on the back of reduced country risk premiums and bringing the valuation forward to FY21.

Click here to view the full report or here to sign up to receive research as it is published.


All reports published by Edison are available to download free of charge from its website

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5700

Sarah Godfrey +44 (0)20 3077 5700

Learn more at and connect with Edison on: 




Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

End of Announcement - EQS News Service

1192438  05-May-2021 


Other stories

18/05/2021 21:41
18/05/2021 22:21
18/05/2021 21:19
18/05/2021 16:43
18/05/2021 19:40
18/05/2021 20:37
18/05/2021 22:46
18/05/2021 12:41
18/05/2021 20:02
18/05/2021 22:30
18/05/2021 22:14
18/05/2021 15:51
18/05/2021 21:02
17/05/2021 17:50
18/05/2021 11:50
18/05/2021 15:51
18/05/2021 10:17
18/05/2021 17:28
18/05/2021 21:35
18/05/2021 21:26
18/05/2021 15:34
18/05/2021 11:28
18/05/2021 21:16
18/05/2021 21:10
18/05/2021 18:49
18/05/2021 23:31
18/05/2021 21:24
18/05/2021 19:47
18/05/2021 23:16
18/05/2021 15:40
18/05/2021 20:45
18/05/2021 13:13
18/05/2021 18:00
18/05/2021 16:57
19/05/2021 00:00
18/05/2021 16:45
17/05/2021 12:40
18/05/2021 19:08