ProCredit Holding AG Faces Capital Requirement Adjustment

ProCredit Holding AG announced that the German Federal Financial Supervisory Authority (BaFin) intends to increase the company's capital requirements by 2 percentage points. This adjustment follows a review of the company's credit processes and adheres to the German Banking Act.

However, changes in the Supervisory Review and Evaluation Process (SREP) are expected to bring a 1.25 percentage points reduction in these requirements. The net effect would be a 0.75 percentage points increase in the capital requirements.

The impact will raise the CET1 capital ratio requirement from 9.4% in December 2024 to 9.8%. Despite these changes, ProCredit Holding maintains its medium-term guidance on return on equity, loan portfolio growth, and dividend policy.