Page 1
Banks
www.fitchratings.com 19 December 2017
Germany
ProCredit Holding AG & Co. KGaA Full Rating Report
Key Rating Drivers
Shareholder Support Drives Ratings: Fitch Ratings’ view of the support ProCredit Holding
AG & Co. KGaA (PCH) can receive from its core international financial institution (IFI)
shareholders drives its Issuer Default Ratings (IDRs). This view is based on their long-term and
strategic commitment, as highlighted by their role within PCH’s structure, and record of debt
and capital support.
Exposure to Emerging Markets: PCH’s Viability Rating (VR) reflects the group’s exposure to
difficult emerging-market environments, relatively narrow franchises of the subsidiary banks in
their respective jurisdictions (with some exceptions) and the inherent credit risks in PCH’s
business model based on lending to SMEs.
Capitalisation Improved: The group’s capitalisation has improved significantly following the
equity injection completed in late 2016. The Fitch Core Capital (FCC) ratio increased to 14.2%
at end-September 2017 from 10.95% at end-2015, although it remains moderate relative to the
risks the group faces given its exposure to weaker operating environments.
Good Asset Quality Maintained: Conservative underwriting and risk management support the
group’s good asset-quality metrics, with subsidiary banks largely outperforming their domestic
market. Consolidated impaired loans made up 5.4% of gross loans at end-September 2017.
The total provisions coverage of impaired loans was adequate at 67% at end-September 2017,
as portfolios are largely collateralised.
Resilient Performance as Strategy Shifts: Revenue pressure from a tightening net interest
margin – reflecting both the exit from higher-margin micro lending and low interest rates – has
been gradually offset by efficiency gains. Profit in 2016 was supported by low impairment
charges of about 50bp of average gross loans, with this trend maintained in the first nine
months of 2017.
Solid Corporate Governance and Management: PCH Group’s VR also reflects strong
corporate governance and risk management across the group, underpinned by supervision
from BaFin, the German banking regulator, and by a solid and experienced management team.
Liquidity Is Well Managed: Liquidity is well managed across the group and the holding
company has adequate reserves to support the group in stress scenarios. The group is funded
through customer deposits (76% of total funding at end-September 2017) and long-term IFI
funding, largely earmarked for development lending to SMEs.
Rating Sensitivities
Support Considerations: A change in Fitch’s view of the support available to PCH could be
negative for its IDRs. However, the Stable Outlook reflects Fitch’s view that the propensity and
ability of PCH’s owners to provide support are unlikely to change in the medium term.
Operating Environment, Asset Quality: Upside for PCH’s VR could result from an
improvement in the operating environments where the group has a presence. A marked
deterioration in asset quality and capitalisation would be negative for the VR.
Ratings
Long-Term IDR BBB
Short-Term IDR F2 Viability Rating bb- Support Rating 2
Sovereign Risk Long-Term Foreign-Currency IDR AAA Short-Term Foreign-Currency IDR F1+ Long-Term Local-Currency IDR AAA Short-Term Local-Currency IDR F1+ Country Ceiling AAA
Outlooks
Long-Term Foreign-Currency IDR Stable Sovereign Long-Term Foreign-Currency IDR
Stable
Sovereign Long-Term Local-Currency IDR
Stable
Financial Data
ProCredit Holding AG & Co. KGaA
30 Sep 17
31 Dec 16
Total assets (USDm) 6,497.8 5,377.0 Total assets (EURm) 5,503.8 5,667.8 Total equity (EURm) 657.4 654.3 Operating profit (EURm) 47.0 61.1 Net income (EURm) 35.8 61.0 Impaired loans ratio (%) 5.4 6.3 Operating profit/RWA (%) 1.4 1.3 Operating ROAE (%) 9.5 9.9 Fitch Core Capital ratio (%)
14.2 13.7
Tier 1 ratio (%) 13.3 12.5 Gross loans/customer deposits (%)
110.2 104.4
Related Research
ProCredit Holding AG & Co. KGaA - Ratings Navigator (June 2017)
Fitch Affirms IDRs of ProCredit Holding and 6 Subsidiary Banks, Takes Various Actions on VRs (May 2017)
Analysts
Artur Szeski +48 22 338 6292 [email protected] Jakub Kopiec, CFA +48 22 330 6702 [email protected]
Page 2
Banks
ProCredit Holding AG & Co. KGaA
December 2017 2
Support Driven by IFI Core Shareholders’ Commitment
PCH Group’s ratings are driven by Fitch’s view of the potential support from core IFI
shareholders, KfW, IFC and Doen, which had a combined stake of 39.3% (based on latest
voting right notification). The core IFI shareholders, as well as Zeitinger Invest and ProCredit
Staff Invest, the other core shareholders, have strategic control over the group through their
status as general partners within the KGaA structure.
The support considerations include the long-term strategic commitment of the core
shareholders, as highlighted by their role within the PCH structure, the alignment of their own
missions of development finance with that of PCH, and a record of debt and capital support to
PCH and its subsidiary banks. In October 2016, the core shareholders renewed their
commitment to maintain a combined stake of at least 20% for a period of three years.
Operating Environment Constrains Groups Standalone Profile
Fitch’s view of PCH Group’s operating environment reflects its exposure to low-rated markets.
PCH is located in Germany (AAA/Stable), but the group’s exposure to its home market remains
small. The subsidiary banks operate largely in developing countries, mostly rated ‘BB’ or below,
with a strong focus on south-eastern Europe (SEE). Weak stability, limited transparency and
susceptibility to event risk of these economies constrain the subsidiary banks’ VRs. In many
cases, the IDRs are capped by to the Country Ceilings or Fitch’s view of country risks in case
of unrated sovereigns.
The PCH group has been supervised on a consolidated basis by the German financial
supervisory authorities (BaFin and Bundesbank) since 2011, when the Germany subsidiary
bank was established. Fitch views the legal and regulatory framework in Germany as strong.
The German subsidiary bank is a member of the German Government Deposit Insurance
Scheme. Individual ProCredit banks are subject to group consolidated supervision by BaFin as
well as to regulation by their country regulators. Only three subsidiaries – those in Bulgaria,
Germany and Romania – operate in EU countries.
Company Profile Reflects Emerging Markets-Focused SME Bank
PCH groups consolidated assets of EUR5.5 billion at end-September 2017 reflect its focus on
SME lending in emerging markets, especially SEE. The group has its roots in microfinance
banks, which have evolved into full-service commercial banks focused on SMEs, with varying
presences in retail business. The operations are divided into four regional segments, with the
holding company, PCH, and the German subsidiary bank responsible for treasury operations.
The group operates through 13 subsidiary banks. The sale of subsidiaries in El Salvador, and
Nicaragua, both completed by November 2017, has ended the group’s refocus on SEE and
eastern Europe (EE).
PCH’s business and earnings are well-diversified geographically. However, seven of the 13
banks are in SEE, which accounted for 70% of gross loans and 65% of operating income at
end-September 2017. The largest country exposures are in Bulgaria (17% of group assets at
end-2016), Kosovo (14%), Serbia (13%), and Georgia (9%), and their performance tends to
have a strong effect on overall group performance. Group earnings rely on net interest income
from the loan book; net interest income after allowances accounted for 80% of operating
income through to September 2017.
The banks operate simple business models with loans to small business clients on the asset
side, and retail and SME deposits on the liabilities side. The funding is supported by stable and
long-term loans from IFIs, often granted as part of SME development-related programmes.
The group’s organisation is set up around a partnership limited by shares (German KGaA
structure). This ensures the strategic control over the group remains with the core shareholders
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PCH Group Viability RatingPCH Group Viability Rating
Outlooks: Stable, Positive, NegativeImportance: Moderate, Higher, LowerSource: Fitch
AAA8%
BBB22%
BB26%
B21%
Source: Banks, Fitch
Portfolio by Sovereign RatingEnd-2016
Unrated23%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Loans Deposits
SEE EE SA Germany
SEE: south-eastern Europe; EE: eastern Europe; SA: South AmericaSource: PCH adapted by Fitch
PCH Regional ExposureEnd-1H17
(EURm)
Within this report
PCH Group refers to the consolidated group, including ProCredit Holding AG & Co. KGaA, the holding company, and its subsidiary banks.
PCH refers to ProCredit Holding AG & Co. KGaA, the holding company, only.
Related Criteria
Global Bank Rating Criteria (November 2016)
Page 3
Banks
ProCredit Holding AG & Co. KGaA
December 2017 3
despite the group’s listing on the Frankfurt Stock Exchange. Under this structure, the “core”
shareholders have to retain a minimum 20% joint stake in PCH for three-year periods, with the
current term ending in 2019. Should the core shareholders fail to maintain this minimum stake,
the legal structure of PCH would revert to an AG, whereby they would then lose the strategic
control afforded to them through the KGaA. Given their combined stake of 57% (based on
latest voting rights notifications), such dilution seems unlikely in the near term.
There was double leverage of 122% at end-September 2017 at the holding company level as it
partly funds itself, mostly through long-term senior and some subordinated debts. This is
invested into the subsidiary banks as equity or as subordinated debt, creating potential cash
flow mismatches. The group manages this risk by ensuring regular payments (management
consulting fees and interest on loans) or upstreaming of dividends from the subsidiary banks to
the parent. The holding company often reinvests part of these dividends as paid-in capital in
subsidiary banks to meet a local subsidiary bank’s capital requirements.
Strong Management and Governance; Strategy Focus on South-East and Eastern Europe
PCH’s management has significant depth and experience, and managers typically have a long
history with the group. PCH’s management board has four members. The group consistently
invests in the training of all levels of management through its ProCredit academies, ensuring its
access to a pool of talent for promotion.
PCH’s corporate governance is in line with global industry standards. The supervisory board,
comprising five members nominated by core shareholders and one independent member,
oversees the main risk areas and audit policies. At a subsidiary bank level, most supervisory
members come from PCH executive management, which helps group standardisation, but
there are also some independent members.
The group’s strategy is to develop its franchise in SEE and EE, where it positions itself as a
regional financial institution. The growth in small and medium-sized enterprises lending and in
exposures above EUR30,000 remains strong at above 10% a year. The group maintains its
efforts on building a streamlined network of outlets, based on automated zones and e-banking.
The group’s regional positioning was strengthened by centralising international payments within
ProCredit Bank Germany, allowing the subsidiary banks to price such services competitively on
their local markets.
Despite a backdrop of a difficult operating environment since 2008 in all the countries in which
the group operates, PCH Group has delivered stable and resilient profitability and asset-quality
indicators that have largely outperformed their respective banking sector averages. The
adjustments to strategy resulted in a more streamlined group, allowing it to deliver on its
objectives, including institutional changes, and optimisation of the workforce and branch
network.
Prudent Underwriting and Risk Controls Drives Conservative Risk Appetite
The group’s prudent and analytical-intensive underwriting standards, internally trained staff and
key personnel, focus on building long-term relationships with clients and avoidance of sensitive
sectors, such as commercial real estate and consumer loans, play a large role in supporting its
good asset-quality ratios through the cycle.
The group risk management committee develops the framework for risk management, and
monitors and manages the risk profile of the group and of individual ProCredit banks. The
asset-liability committee monitors the group’s liquidity reserve and liquidity management, and
coordinates funding for the group and for individual ProCredit banks. The risk departments of
individual banks report to the central risk function at PCH level and the local supervisory board
is informed at least on a quarterly basis of relevant developments.
ProCredit Bank AG
(EURm) Dec 16
Loans to sister banks 118 Co-financing with sister banks 50 German SMEs 11 German project finance 20 Total assets 484 PCH group’s interbank deposits 309 Equity 51
Source: ProCredit Bank AG, Fitch
SEE67%
EE22%
SA10%
Source: PCH, Fitch
PCH Group Operating Income by RegionEnd-1H17
Germany1%
67% 63%
0
2,000
4,000
6,000
Assets Liabilities & Equity
Equity Other liabilities
Customer deposits Other assets
Securities Customer loans
Source: Bank, Fitch
EURm
PCH Group Balance SheetEnd-3Q17
0.0
0.5
1.0
1.5
2.0
0
5
10
15
20
12
20
13
20
14
20
15
20
16
3Q
17
(%)
Operating profit/RWA (RHS)
Fitch core capital ratio (LHS)
Impaired loans ratio (LHS)
Source: PCH, Fitch
(%)
Results Through-the-Cycle
Page 4
Banks
ProCredit Holding AG & Co. KGaA
December 2017 4
The group’s loan portfolio dominated by SME exposures remains diversified by country, sector
and borrower. The strategic focus on loans above EUR30,000 has reduced the exposure to
small-ticket loans and increased the role of collateral in lending. The top 25 exposures
amounted to EUR133 million, representing a modest 21% of FCC, none of which was impaired.
PCH Group has returned to growth in its gross loan portfolio in first half of 2017, following two
years of contraction driven by its exit strategy from the smallest SME exposures and some non-
core markets (Latin America and Africa). The core portfolio of loans EUR30,000 steadily grew
in 2015 and 2016. Fitch views the medium-term growth target of 10% a year in key portfolio
segment as ambitious, but achievable. The improving macroeconomic situation in the group’s
main markets supports this target.
The group’s foreign-exchange (FX) risk comes from two sources: the potential gain/loss from
open-currency positions of its individual banks and the net effect at a consolidated level. The
group manages this risk through a set of open currency limits imposed on subsidiary banks. At
a group level, FX risk also arises from the equity investments made by PCH in its subsidiary
banks as most banks keep their equity in their respective local currency or in US dollars. The
group’s regulatory capital is exposed to changes in the exchange rates of local currencies and
of the dollar against the euro, through the translation reserve in the group’s equity position.
Asset Quality Remains the Group’s Rating Strength
PCH Group’s asset quality remains a rating strength with subsidiary banks’ largely
outperforming their respective banking sectors. Supported by conservative underwriting, tight
risk control and strategy shift towards larger more formalised business the group’s asset quality
should remain resilient to moderate economic shocks in its operating environment. The group’s
impaired loans ratio was 5.4% at end-September 2017. The group uses a key trigger for
impairment of 30 days’ delinquency plus other signs of impairment, as opposed to the 90 days
typically used by peers.
Fitch views coverage as healthy with reserves (including IBNR) covering 67% of impaired loans
at end-September 2017 (up from 58% at end-September 2016), given the largely collateralised
portfolio. Coverage levels should continue to reflect the weak legal framework of some of the
group’s key operating countries where recovery periods can be lengthy (the average is about
five years). The group aims to maintain the coverage of loans in more than 30 days’
delinquency at 100% or more. At end-September 2017, coverage of these loans was 103%.
Loans in euros and dollars have been stable accounted for 65% of gross loans at end-
September 2017. This puts borrowers’ repayments at risk in the event of a sharp depreciation
of the local currency. In some markets – Bosnia, Bulgaria, Kosovo and Macedonia – the risk is
mitigated by a currency peg. The medium-term target of all PCH banks is to increase the share
of lending in local currencies. The share of foreign-currency lending of subsidiary banks is also
in line with their respective sector averages, particularly in SEE.
-10
-5
0
5
10
15
20
25
20
12
20
13
20
14
20
15
20
16
3Q
17
(%)
Loan growth
Fitch core capital ratio
Source: PCH, Fitch
Loan Growth
0
20
40
60
80
100
0
2
4
6
8
10
20
12
20
13
20
14
20
15
20
16
1H
17
(%)
Reserve coverage ratio (RHS)Impaired loans ratio (LHS)Net imp. loans/net loans (LHS)
Source: PCH, Fitch
(%)
PCH Group Asset Quality
0
5
10
15
20
25
30
35
Albania Bosnia andHerzegovina
Bulgaria Colombia Ecuador Georgia Kosovo Macedonia Moldova Romania Serbia Ukraine
(%) PCH banks Sector
Source: PCH, Banks, Bank Regulators, Fitch
PCH Subsidiary Banks vs. Home Sectors NPLsEnd-2016
Page 5
Banks
ProCredit Holding AG & Co. KGaA
December 2017 5
Profitability Reflects Modest Cost-to-Income Ratio and Low LICs
PCH Group has built a stable record of operating profitability through the cycle through the
group’s ability to maintain wide, albeit tightening, margins and reasonable loan impairment
charges. This was despite strong headwinds in many of markets in which it operates and
comprehensive internal restructuring.
The group’s operating profitability is supported by wide, albeit tightening, interest margins (5%
at end-September 2017) and low cost of risk (0.2%). Tight control of risk cost and volume
growth have supported managing the pressures coming from falling market interest rates and
high competition in banking in countries in which the group operates.
The challenge remains in further optimising the cost structure and restoring revenue pressured
by low market interest rates and the move to safer, but lower-yielding, assets. To
accommodate these, the group has reorganised its branch network, reduced staff numbers as
most of day-to-day business has moved to online and self-service channels. This has resulted
in a significant drop in the ratio of non-interest expenses/average assets, although this is still
higher than at commercial banking peers. The cost-to-income ratio remained high at 73% at
end-September 2017.
The holding company has built a stable record of adequate operating profit through the cycle,
and benefits from relatively good predictability of future earnings given they are based on
revenue from subsidiary banks. The main contributors to both group and PCH earnings have
been the larger subsidiary banks, in particular, Bulgaria, Georgia, Kosovo and Serbia.
0
20
40
60
80
100
0
5
10
15
20
Albania Bosnia andHerzegovina
Bulgaria Colombia Ecuador Georgia Germany Kosovo Macedonia Moldova Romania Serbia Ukraine
(%)(%) Risk adjusted net interest margin (LHS) Credit risk cost (LHS) Cost income ratio (RHS)
Source: PCH, Banks, Fitch
Subsidiary Banks ProfitabilityEnd-2016
C/I = 221%
0
2
4
6
8
10
12
0.0
0.5
1.0
1.5
2.0
20
12
20
13
20
14
20
15
20
16
3Q
17
(%)
Operating profit/RWA (LHS)
Return on assets (LHS)
Return on equity (RHS)
Source: PCH, Fitch
(%)
PCH Group Profitability
0
20
40
60
80
0
2
4
6
8
20
12
20
13
20
14
20
15
20
16
3Q
17
(%)
Cost/average assets (LHS)
Cost/income (RHS)
Impairments/PIOPª (RHS)
Source: Bank, Fitch
a pre-impairment operating profitSource: PCH, Fitch
(%)
PCH Group Cost Efficiency
0
5
10
15
20
25
30
Albania Bosnia andHerzegovina
Bulgaria Colombia Ecuador Georgia Germany Kosovo Macedonia Moldova Romania Serbia Ukraine
(%)Fitch Core Capital ratio Tangible equity/tangible assets
Source: PCH, Banks, Fitch
Subsidiary Banks Capitalisation and LeverageEnd-2016
Page 6
Banks
ProCredit Holding AG & Co. KGaA
December 2017 6
Improving Capitalisation and Leverage
Group capitalisation has been improving although it remains moderate given the exposure to
volatile markets and the risks inherent in SME lending. The FCC ratio rose to 14.2% at end-
September 2017, following capital increase executed in late-2016 and relief in risk-weighted
assets coming from the sale of businesses in Latin America. The reported Tier 1 ratio of 13.3%
at end September-2017 provides a reasonable buffer over regulatory minimum.
The group’s loss-absorption capacity is supported by the low levels of unreserved impaired
loans/FCC (11% at end-September 2017), particularly given the more conservative definition of
IFRS impaired loans used by the group than its peers. In 2017, PCH paid dividends of EUR20
million maintaining the dividend pay-out ratio introduced following the listing of its shares on
Frankfurt Stock Exchange.
Funding and Liquidity
Customer deposits held by the ProCredit subsidiary banks accounted for 76% of total funding
at end-September 2017. The second most important source of funding are long-term IFI loans,
most often related to programmes earmarked for SME lending. The group focuses on
optimising its funding structure, with use of customer deposits and long-term IFI loans.
Subordinated debt from group perspective is also issued mostly at the PCH level, given that
most of the subordinated debt issued by subsidiary banks is taken up by the holding company
and is therefore not visible in consolidated figures.
Fitch does not expect the strategic shift towards larger SMEs to lead to any material increase in
deposit concentrations in the medium term, as SMEs served by the group tend to be small. The
customer deposit mix remains skewed towards granular deposits of private individuals, with
business clients’ share slowly growing.
We view the liquidity profile of PCH Group as healthy. Liquidity management has been
centralised within the German subsidiary bank, with additional reserves held at the holding
company, including credit lines from Germany-based commercial banks. At end-September
2017, the group’s liquidity coverage ratio (LCR) was 143%, comfortably meeting regulatory
requirements. Similarly, most of the subsidiary banks already meet LCR requirement of 100%.
Tighter liquidity at end-June 2017 was reported at the Serbian subsidiary bank and was also
intentionally reduced at banks held for sale. Sale transactions had completed by end-
November 2017.
0
10
20
30
40
0
4
8
12
16
20
12
20
13
20
14
20
15
20
16
3Q
17
(%)
FCCª ratio (LHS)Tangible (equity/assets) (LHS)Unreserved NPLs/FCC (RHS)
a Fitch core capital Source: PCH, Fitch
(%)(RWA/Assets: 81%)
PCH Group Capitalisation & Leverage
0
20
40
60
80
100
120
140
20
12
20
13
20
14
20
15
20
16
3Q
17
(%)
Customer deposits/funding
Gross loans/customer deposits
Source: PCH, Fitch
PCH Group Funding Profile
0
1,000
2,000
3,000
4,000
5,000
6,000
2012 2013 2014 2015 2016 3Q17
Deposits Banks
Other short-term Other long-term
Source: Bank, Fitch
(EURm)(2012-3Q17 deposit CAGR: -2.3%)
PCH Group Funding Breakdown
0
20
40
60
80
100
120
140
160
180
Albania Bosnia andHerzegovina
Bulgaria Colombia Ecuador Georgia Germany Kosovo Macedonia Moldova Romania Serbia Ukraine
(%) Loans/customer deposits Customer deposits/total funding
Source: PCH, Banks, Fitch
Subsidiary Banks Funding and LiquidityEnd-2016
Page 7
Banks
ProCredit Holding AG & Co. KGaA
December 2017 7
Peer Analysis
(EUR5.7bn) (EUR1bn) (EUR0.5bn) (EUR0.8bn) (EUR0.7bn) (EUR0.4bn)
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ProCreditHolding
PCB Bulgaria PCB Georgia PCB Kosovo PCB Serbia PCB Ukraine
Customer loans Securities Other assets Customer deposits Other liabilities Equity
Calculation based on the latest available dataSource: Banks, Fitch
(%)
Balance Sheet Structure
0
1
2
3
4
5
0
5
10
15
20
25
30
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
ProCreditHolding
PCB Bulgaria PCB Georgia PCB Kosovo PCB Serbia PCB Ukraine
(%)Operating profit/RWA (RHS) Gross impaired loans/grosss loans (LHS) Fitch Core Capital ratio (LHS)
Source: Banks, Fitch
(%)
Performance Through-the-Cycle
0
40
80
120
160
200
240
280
0
2
4
6
8
10
12
14
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
ProCreditHolding
PCB Bulgaria PCB Georgia PCB Kosovo PCB Serbia PCB Ukraine
(%)Reserve coverage ratio (RHS) Gross impaired loans/grosss loans (LHS) Net impaired loans/net loans (LHS)
Source: Banks, Fitch
(%)
Asset Quality
0
30
60
90
0
4
8
12
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
ProCreditHolding
PCB Bulgaria PCB Georgia PCB Kosovo PCB Serbia PCB Ukraine
(%)
Cost/income (RHS) Credit-risk adjusted margin (LHS) Operating profit/risk-weighted assets (LHS)
Source: Banks, Fitch
(%)
Profitability
Page 8
Banks
ProCredit Holding AG & Co. KGaA
December 2017 8
0
15
30
45
0
5
10
15
20
25
30
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
20
12
20
13
20
14
20
15
20
16
ProCreditHolding
PCB Bulgaria PCB Georgia PCB Kosovo PCB Serbia PCB Ukraine
(%)
Fitch Core Capital ratio (LHS) Tangible common equity/tangible assets (LHS) Unreserved impaired loans/Fitch Core Capital (RHS)
Source: Bank, Fitch
(%)
Capitalisation
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ProCreditHolding
PCB Bulgaria PCB Georgia PCB Kosovo PCB Serbia PCB Ukraine
Customer deposits (LHS) Banks (LHS) Other short-term (LHS) Other long-term (LHS) Loans/ deposits (RHS)
Source: Bank, Fitch
(%)(%)
Funding Breakdown
Page 9
Banks
ProCredit Holding AG & Co. KGaA
December 2017 9
ProCredit Holding AG & Co. KGaA
Income Statement30 Sep 2017 31 Dec 2016 31 Dec 2015 31 Dec 2014
9 Months - 3rd Quarter9 Months - 3rd Quarter As % of Year End As % of Year End As % of Year End As % of
USDm EURm EURm EURm EURm
Unaudited Unaudited
Audited -
Unqualified
Audited -
Unqualified
Audited -
Unqualified
1. Interest Income on Loans 240.6 203.8 6.66 306.9 7.64 349.6 7.81 517.0 10.78
2. Other Interest Income 14.2 12.0 0.39 20.7 0.52 19.6 0.44 23.0 0.48
3. Dividend Income 0.1 0.1 0.00 0.4 0.01 0.2 0.00 n.a. -
4. Gross Interest and Dividend Income 254.9 215.9 7.06 328.0 8.17 369.4 8.25 540.0 11.26
5. Interest Expense on Customer Deposits 38.5 32.6 1.07 53.0 1.32 59.8 1.34 89.2 1.86
6. Other Interest Expense 35.8 30.3 0.99 43.8 1.09 48.6 1.09 64.3 1.34
7. Total Interest Expense 74.3 62.9 2.06 96.8 2.41 108.4 2.42 153.5 3.20
8. Net Interest Income 180.6 153.0 5.00 231.2 5.76 261.0 5.83 386.5 8.06
9. Net Gains (Losses) on Trading and Derivatives 9.8 8.3 0.27 8.9 0.22 10.9 0.24 (0.5) (0.01)
10. Net Gains (Losses) on Other Securities 0.1 0.1 0.00 4.2 0.10 0.0 0.00 0.4 0.01
11. Net Gains (Losses) on Assets at FV through Income Statement (0.7) (0.6) (0.02) (1.0) (0.02) 0.8 0.02 2.7 0.06
12. Net Insurance Income n.a. n.a. - n.a. - n.a. - n.a. -
13. Net Fees and Commissions 39.3 33.3 1.09 43.0 1.07 47.7 1.07 56.2 1.17
14. Other Operating Income 21.3 18.0 0.59 14.7 0.37 12.4 0.28 7.8 0.16
15. Total Non-Interest Operating Income 69.8 59.1 1.93 69.8 1.74 71.8 1.60 66.6 1.39
16. Personnel Expenses 76.0 64.4 2.11 88.2 2.20 98.6 2.20 156.1 3.25
17. Other Operating Expenses 113.6 96.2 3.15 133.1 3.31 138.6 3.10 157.8 3.29
18. Total Non-Interest Expenses 189.6 160.6 5.25 221.3 5.51 237.2 5.30 313.9 6.54
19. Equity-accounted Profit/ Loss - Operating n.a. n.a. - n.a. - n.a. - n.a. -
20. Pre-Impairment Operating Profit 60.8 51.5 1.68 79.7 1.98 95.6 2.13 139.2 2.90
21. Loan Impairment Charge 5.3 4.5 0.15 18.6 0.46 42.0 0.94 55.1 1.15
22. Securities and Other Credit Impairment Charges n.a. n.a. - 0.0 0.00 0.0 0.00 n.a. -
23. Operating Profit 55.5 47.0 1.54 61.1 1.52 53.6 1.20 84.1 1.75
24. Equity-accounted Profit/ Loss - Non-operating n.a. n.a. - n.a. - n.a. - n.a. -
25. Non-recurring Income n.a. n.a. - 0.0 0.00 0.0 0.00 6.2 0.13
26. Non-recurring Expense n.a. n.a. - 0.0 0.00 0.0 0.00 16.4 0.34
27. Change in Fair Value of Own Debt n.a. n.a. - n.a. - n.a. - n.a. -
28. Other Non-operating Income and Expenses n.a. n.a. - n.a. - n.a. - n.a. -
29. Pre-tax Profit 55.5 47.0 1.54 61.1 1.52 53.6 1.20 73.9 1.54
30. Tax expense 12.4 10.5 0.34 14.1 0.35 15.2 0.34 22.4 0.47
31. Profit/Loss from Discontinued Operations (0.8) (0.7) (0.02) 14.0 0.35 22.9 0.51 (1.3) (0.03)
32. Net Income 42.3 35.8 1.17 61.0 1.52 61.3 1.37 50.2 1.05
33. Change in Value of AFS Investments 0.4 0.3 0.01 (4.2) (0.10) 3.8 0.08 (0.4) (0.01)
34. Revaluation of Fixed Assets n.a. n.a. - n.a. - n.a. - n.a. -
35. Currency Translation Differences (10.7) (9.1) (0.30) (0.7) (0.02) (5.0) (0.11) 3.3 0.07
36. Remaining OCI Gains/(losses) (1.9) (1.6) (0.05) (14.3) (0.36) 14.3 0.32 10.2 0.21
37. Fitch Comprehensive Income 30.0 25.4 0.83 41.8 1.04 74.4 1.66 63.3 1.32
38. Memo: Profit Allocation to Non-controlling Interests 1.4 1.2 0.04 1.6 0.04 1.8 0.04 2.4 0.05
39. Memo: Net Income after Allocation to Non-controlling Interests 40.8 34.6 1.13 59.4 1.48 59.6 1.33 47.8 1.00
40. Memo: Common Dividends Relating to the Period n.a. n.a. - 20.3 0.51 20.3 0.45 10.2 0.21
41. Memo: Preferred Dividends Related to the Period n.a. n.a. - n.a. - n.a. - n.a. -
Exchange rate USD1 = EUR0.84703 USD1 = EUR0.9487 USD1 = EUR0.9185 USD1 = EUR0.8237
Earning Assets Earning Assets Earning Assets Earning Assets
Page 10
Banks
ProCredit Holding AG & Co. KGaA
December 2017 10
ProCredit Holding AG & Co. KGaA
Balance Sheet30 Sep 2017 31 Dec 2016 31 Dec 2015 31 Dec 2014
9 Months -
3rd Quarter
9 Months -
3rd Quarter As % of Year End As % of Year End As % of Year End As % of
USDm EURm Assets EURm Assets EURm Assets EURm Assets
AssetsA. Loans
1. Residential Mortgage Loans n.a. n.a. - n.a. - 0.0 0.00 n.a. -
2. Other Mortgage Loans n.a. n.a. - n.a. - n.a. - n.a. -
3. Other Consumer/ Retail Loans 394.0 333.7 6.06 304.0 5.36 292.5 4.87 286.0 4.79
4. Corporate & Commercial Loans 4,108.0 3,479.6 63.22 3,299.3 58.21 3,787.8 63.03 4,005.7 67.12
5. Other Loans 22.7 19.2 0.35 25.4 0.45 24.6 0.41 40.5 0.68
6. Less: Reserves for Impaired Loans 164.2 139.1 2.53 150.7 2.66 176.6 2.94 188.5 3.16
7. Net Loans 4,360.4 3,693.4 67.11 3,478.0 61.36 3,928.3 65.37 4,143.7 69.43
8. Gross Loans 4,524.6 3,832.5 69.63 3,628.7 64.02 4,104.9 68.31 4,332.2 72.59
9. Memo: Impaired Loans included above 244.4 207.0 3.76 229.6 4.05 305.1 5.08 349.2 5.85
10. Memo: Loans at Fair Value included above n.a. n.a. - n.a. - n.a. - n.a. -
B. Other Earning Assets
1. Loans and Advances to Banks 245.6 208.0 3.78 286.7 5.06 339.4 5.65 411.1 6.89
2. Reverse Repos and Cash Collateral n.a. n.a. - n.a. - n.a. - n.a. -
3. Trading Securities and at FV through Income n.a. n.a. - n.a. - n.a. - 4.3 0.07
4. Derivatives 0.4 0.3 0.01 0.2 0.00 0.9 0.01 0.8 0.01
5. Available for Sale Securities 217.6 184.3 3.35 249.8 4.41 207.0 3.44 232.4 3.89
6. Held to Maturity Securities n.a. n.a. - n.a. - n.a. - n.a. -
7. Equity Investments in Associates n.a. n.a. - n.a. - n.a. - n.a. -
8. Other Securities n.a. n.a. - n.a. - n.a. - n.a. -
9. Total Securities 217.9 184.6 3.35 250.0 4.41 207.9 3.46 237.5 3.98
10. Memo: Government Securities included Above n.a. n.a. - n.a. - n.a. - n.a. -
11. Memo: Total Securities Pledged n.a. n.a. - 1.0 0.02 1.0 0.02 1.7 0.03
12. Investments in Property 4.3 3.6 0.07 1.9 0.03 2.2 0.04 3.9 0.07
13. Insurance Assets n.a. n.a. - n.a. - n.a. - n.a. -
14. Other Earning Assets n.a. n.a. - n.a. - n.a. - n.a. -
15. Total Earning Assets 4,828.2 4,089.6 74.31 4,016.6 70.87 4,477.8 74.51 4,796.2 80.36
C. Non-Earning Assets
1. Cash and Due From Banks 1,062.3 899.8 16.35 937.4 16.54 834.2 13.88 855.1 14.33
2. Memo: Mandatory Reserves included above 406.1 344.0 6.25 327.4 5.78 314.6 5.24 370.2 6.20
3. Foreclosed Real Estate n.a. n.a. - 26.8 0.47 25.9 0.43 35.1 0.59
4. Fixed Assets 168.6 142.8 2.59 157.4 2.78 172.2 2.87 193.3 3.24
5. Goodwill 12.2 10.3 0.19 10.3 0.18 11.6 0.19 14.7 0.25
6. Other Intangibles 13.0 11.0 0.20 11.1 0.20 12.2 0.20 15.3 0.26
7. Current Tax Assets 5.4 4.6 0.08 4.1 0.07 3.3 0.05 2.6 0.04
8. Deferred Tax Assets 6.6 5.6 0.10 6.4 0.11 6.0 0.10 9.7 0.16
9. Discontinued Operations 331.7 281.0 5.11 461.4 8.14 428.9 7.14 0.0 0.00
10. Other Assets 69.8 59.1 1.07 36.3 0.64 37.4 0.62 46.4 0.78
11. Total Assets 6,497.8 5,503.8 100.00 5,667.8 100.00 6,009.5 100.00 5,968.4 100.00
Liabilities and Equity
D. Interest-Bearing Liabilities
1. Customer Deposits - Current 4,107.5 3,479.2 63.21 1,606.4 28.34 1,343.7 22.36 1,339.8 22.45
2. Customer Deposits - Savings n.a. n.a. - 722.0 12.74 611.6 10.18 852.0 14.28
3. Customer Deposits - Term n.a. n.a. - 1,146.7 20.23 1,837.7 30.58 1,800.4 30.17
4. Total Customer Deposits 4,107.5 3,479.2 63.21 3,475.1 61.31 3,793.0 63.12 3,992.2 66.89
5. Deposits from Banks 362.2 306.8 5.57 317.6 5.60 394.2 6.56 350.4 5.87
6. Repos and Cash Collateral n.a. n.a. - n.a. - n.a. - n.a. -
7. Commercial Paper and Short-term Borrowings n.a. n.a. - 174.2 3.07 193.6 3.22 231.8 3.88
8. Total Money Market and Short-term Funding 4,469.7 3,786.0 68.79 3,966.9 69.99 4,380.8 72.90 4,574.4 76.64
9. Senior Unsecured Debt (original maturity > 1 year) 775.1 656.5 11.93 468.8 8.27 521.0 8.67 557.1 9.33
10. Subordinated Borrowing 166.8 141.3 2.57 171.0 3.02 131.4 2.19 156.2 2.62
11. Covered Bonds n.a. n.a. - n.a. - n.a. - n.a. -
12. Other Long-term Funding n.a. n.a. - n.a. - n.a. - n.a. -
13. Total LT Funding (original maturity > 1 year) 941.9 797.8 14.50 639.8 11.29 652.4 10.86 713.3 11.95
14. Derivatives 0.7 0.6 0.01 1.4 0.02 2.4 0.04 2.6 0.04
15. Trading Liabilities n.a. n.a. - n.a. - n.a. - n.a. -
16. Total Funding 5,412.3 4,584.4 83.30 4,608.1 81.30 5,035.6 83.79 5,290.3 88.64
E. Non-Interest Bearing Liabilities
1. Fair Value Portion of Debt n.a. n.a. - n.a. - n.a. - n.a. -
2. Credit impairment reserves n.a. n.a. - n.a. - n.a. - n.a. -
3. Reserves for Pensions and Other 16.9 14.3 0.26 15.7 0.28 17.9 0.30 17.5 0.29
4. Current Tax Liabilities 2.1 1.8 0.03 1.5 0.03 2.0 0.03 4.1 0.07
5. Deferred Tax Liabilities 1.5 1.3 0.02 1.9 0.03 4.3 0.07 5.0 0.08
6. Other Deferred Liabilities 3.5 3.0 0.05 2.2 0.04 2.3 0.04 5.8 0.10
7. Discontinued Operations 268.3 227.3 4.13 367.6 6.49 318.7 5.30 n.a. -
8. Insurance Liabilities n.a. n.a. - n.a. - n.a. - n.a. -
9. Other Liabilities 16.9 14.3 0.26 16.5 0.29 24.7 0.41 23.2 0.39
10. Total Liabilities 5,721.6 4,846.4 88.06 5,013.5 88.46 5,405.5 89.95 5,345.9 89.57
F. Hybrid Capital
1. Pref. Shares and Hybrid Capital accounted for as Debt n.a. n.a. - n.a. - n.a. - 67.1 1.12
2. Pref. Shares and Hybrid Capital accounted for as Equity n.a. n.a. - n.a. - n.a. - n.a. -
G. Equity
1. Common Equity 853.7 723.1 13.14 708.2 12.50 635.4 10.57 586.0 9.82
2. Non-controlling Interest 8.6 7.3 0.13 8.2 0.14 7.7 0.13 17.3 0.29
3. Securities Revaluation Reserves 0.2 0.2 0.00 0.0 0.00 4.6 0.08 0.8 0.01
4. Foreign Exchange Revaluation Reserves (86.4) (73.2) (1.33) (62.1) (1.10) (43.7) (0.73) (48.7) (0.82)
5. Fixed Asset Revaluations and Other Accumulated OCI n.a. n.a. - n.a. - n.a. - n.a. -
6. Total Equity 776.1 657.4 11.94 654.3 11.54 604.0 10.05 555.4 9.31
7. Total Liabilities and Equity 6,497.8 5,503.8 100.00 5,667.8 100.00 6,009.5 100.00 5,968.4 100.00
8. Memo: Fitch Core Capital 746.3 632.1 11.48 628.5 11.09 575.8 9.58 517.8 8.68
Exchange rate USD1 = EUR0.84703 USD1 = EUR0.9487 USD1 = EUR0.9185 USD1 = EUR0.8237
Page 11
Banks
ProCredit Holding AG & Co. KGaA
December 2017 11
ProCredit Holding AG & Co. KGaA
Summary Analytics30 Sep 2017 31 Dec 2016 31 Dec 2015 31 Dec 2014
9 Months - 3rd Quarter Year End Year End Year End
A. Interest Ratios
1. Interest Income on Loans/ Average Gross Loans 7.27 7.88 8.54 12.12
2. Interest Expense on Customer Deposits/ Average Customer Deposits 1.27 1.46 1.59 2.32
3. Interest Income/ Average Earning Assets 7.06 7.67 7.95 11.40
4. Interest Expense/ Average Interest-bearing Liabilities 1.85 2.01 2.17 2.94
5. Net Interest Income/ Average Earning Assets 5.01 5.41 5.62 8.16
6. Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets 4.86 4.97 4.71 7.00
7. Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets 5.01 5.41 5.62 8.16
B. Other Operating Profitability Ratios
1. Non-Interest Income/ Gross Revenues 27.86 23.19 21.57 14.70
2. Non-Interest Expense/ Gross Revenues 75.72 73.52 71.27 69.28
3. Non-Interest Expense/ Average Assets 3.86 3.74 3.93 5.34
4. Pre-impairment Op. Profit/ Average Equity 10.46 12.93 16.34 26.66
5. Pre-impairment Op. Profit/ Average Total Assets 1.24 1.35 1.58 2.37
6. Loans and securities impairment charges/ Pre-impairment Op. Profit 8.74 23.34 43.93 39.58
7. Operating Profit/ Average Equity 9.54 9.91 9.16 16.10
8. Operating Profit/ Average Total Assets 1.13 1.03 0.89 1.43
9. Operating Profit / Risk Weighted Assets 1.41 1.33 1.02 1.65
C. Other Profitability Ratios
1. Net Income/ Average Total Equity 7.27 9.89 10.48 9.61
2. Net Income/ Average Total Assets 0.86 1.03 1.02 0.85
3. Fitch Comprehensive Income/ Average Total Equity 5.16 6.78 12.71 12.12
4. Fitch Comprehensive Income/ Average Total Assets 0.61 0.71 1.23 1.08
5. Taxes/ Pre-tax Profit 22.34 23.08 28.36 30.31
6. Net Income/ Risk Weighted Assets 1.08 1.33 1.17 0.98
D. Capitalization
1. FCC/FCC-Adjusted Risk Weighted Assets 14.20 13.65 10.95 10.15
2. Tangible Common Equity/ Tangible Assets 11.54 11.14 9.63 8.73
3. Tier 1 Regulatory Capital Ratio 13.30 12.50 10.20 10.60
4. Total Regulatory Capital Ratio 16.30 15.70 12.10 12.80
5. Common Equity Tier 1 Capital Ratio 13.30 12.50 10.20 10.10
6. Equity/ Total Assets 11.94 11.54 10.05 9.31
7. Cash Dividends Paid & Declared/ Net Income n.a. 33.28 33.12 20.32
8. Internal Capital Generation 7.28 6.22 6.79 7.20
E. Loan Quality
1. Growth of Total Assets (2.89) (5.69) 0.69 2.17
2. Growth of Gross Loans 5.62 (11.60) (5.25) 3.51
3. Impaired Loans/ Gross Loans 5.40 6.33 7.43 8.06
4. Reserves for Impaired Loans/ Gross Loans 3.63 4.15 4.30 4.35
5. Reserves for Impaired Loans/ Impaired Loans 67.20 65.64 57.88 53.98
6. Impaired loans less Reserves for Impaired Loans/ Fitch Core Capital 10.74 12.55 22.32 31.04
7. Impaired Loans less Reserves for Impaired Loans/ Equity 10.33 12.06 21.27 28.93
8. Loan Impairment Charges/ Average Gross Loans 0.16 0.48 1.03 1.29
9. Net Charge-offs/ Average Gross Loans 0.27 0.68 0.76 0.93
10. Impaired Loans + Foreclosed Assets/ Gross Loans + Foreclosed Assets 5.40 7.01 8.01 8.80
F. Funding and Liquidity
1. Loans/ Customer Deposits 110.15 104.42 108.22 108.52
2. Interbank Assets/ Interbank Liabilities 67.80 90.27 86.10 117.32
3. Customer Deposits/ Total Funding (excluding derivatives) 75.90 75.44 75.36 74.55
4. Liquidity Coverage Ratio 143.00 194.00 n.a. n.a.
5. Net Stable Funding Ratio n.a. n.a. n.a. n.a.
Page 12
Banks
ProCredit Holding AG & Co. KGaA
December 2017 12
ProCredit Holding AG & Co. KGaA
Reference Data30 Sep 2017 31 Dec 2016 31 Dec 2015 31 Dec 2014
9 Months -
3rd Quarter
9 Months -
3rd Quarter As % of Year End As % of Year End As % of Year End As % of
USDm EURm Assets EURm Assets EURm Assets EURm Assets
A. Off-Balance Sheet Items
1. Managed Securitized Assets Reported Off-Balance Sheet n.a. n.a. - n.a. - n.a. - n.a. -
2. Other off-balance sheet exposure to securitizations n.a. n.a. - n.a. - n.a. - n.a. -
3. Guarantees 209.3 177.3 3.22 162.8 2.87 158.4 2.64 99.7 1.67
4. Acceptances and documentary credits reported off-balance sheet 7.7 6.5 0.12 6.2 0.11 6.4 0.11 2.7 0.05
5. Committed Credit Lines 520.9 441.2 8.02 440.6 7.77 394.7 6.57 352.2 5.90
7. Other Off-Balance Sheet items n.a. n.a. - n.a. - n.a. - 44.0 0.74
8. Total Assets under Management n.a. n.a. - n.a. - n.a. - 6,423.9 107.63
B. Average Balance Sheet
Average Loans 4,422.2 3,745.7 68.06 3,896.5 68.75 4,092.0 68.09 4,264.5 71.45
Average Earning Assets 4,825.2 4,087.1 74.26 4,274.6 75.42 4,645.4 77.30 4,735.0 79.33
Average Assets 6,566.7 5,562.2 101.06 5,924.2 104.52 6,037.1 100.46 5,881.8 98.55
Average Managed Securitized Assets (OBS) n.a. n.a. - n.a. - n.a. - n.a. -
Average Interest-Bearing Liabilities 5,359.4 4,539.6 82.48 4,813.9 84.93 5,006.7 83.31 5,223.4 87.52
Average Common equity 844.6 715.4 13.00 658.1 11.61 611.4 10.17 566.2 9.49
Average Equity 777.3 658.4 11.96 616.6 10.88 585.2 9.74 522.2 8.75
Average Customer Deposits 4,043.2 3,424.7 62.22 3,623.9 63.94 3,755.2 62.49 3,840.7 64.35
C. Maturities
Asset Maturities:
Loans & Advances < 3 months n.a. n.a. - n.a. - n.a. - n.a. -
Loans & Advances 3 - 12 Months n.a. n.a. - n.a. - n.a. - n.a. -
Loans and Advances 1 - 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Loans & Advances > 5 years n.a. n.a. - n.a. - n.a. - n.a. -
Debt Securities < 3 Months n.a. n.a. - n.a. - n.a. - n.a. -
Debt Securities 3 - 12 Months n.a. n.a. - n.a. - n.a. - n.a. -
Debt Securities 1 - 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Debt Securities > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Loans & Advances to Banks < 3 Months n.a. n.a. - 279.7 4.93 332.3 5.53 390.4 6.54
Loans & Advances to Banks 3 - 12 Months n.a. n.a. - 2.3 0.04 0.2 0.00 20.7 0.35
Loans & Advances to Banks 1 - 5 Years n.a. n.a. - 4.7 0.08 6.9 0.11 n.a. -
Loans & Advances to Banks > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Liability Maturities:
Retail Deposits < 3 months n.a. n.a. - n.a. - n.a. - n.a. -
Retail Deposits 3 - 12 Months n.a. n.a. - n.a. - n.a. - n.a. -
Retail Deposits 1 - 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Retail Deposits > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Other Deposits < 3 Months n.a. n.a. - n.a. - n.a. - n.a. -
Other Deposits 3 - 12 Months n.a. n.a. - n.a. - n.a. - n.a. -
Other Deposits 1 - 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Other Deposits > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Deposits from Banks < 3 Months n.a. n.a. - 94.0 1.66 90.9 1.51 99.3 1.66
Deposits from Banks 3 - 12 Months n.a. n.a. - 53.5 0.94 50.5 0.84 49.5 0.83
Deposits from Banks 1 - 5 Years n.a. n.a. - 170.1 3.00 252.8 4.21 201.6 3.38
Deposits from Banks > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Senior Debt Maturing < 3 months n.a. n.a. - n.a. - n.a. - n.a. -
Senior Debt Maturing 3-12 Months n.a. n.a. - n.a. - n.a. - n.a. -
Senior Debt Maturing 1- 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Senior Debt Maturing > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Total Senior Debt on Balance Sheet n.a. n.a. - n.a. - n.a. - n.a. -
Fair Value Portion of Senior Debt n.a. n.a. - n.a. - n.a. - n.a. -
Subordinated Debt Maturing < 3 months n.a. n.a. - n.a. - n.a. - n.a. -
Subordinated Debt Maturing 3-12 Months n.a. n.a. - n.a. - n.a. - n.a. -
Subordinated Debt Maturing 1- 5 Year n.a. n.a. - n.a. - n.a. - n.a. -
Subordinated Debt Maturing > 5 Years n.a. n.a. - n.a. - n.a. - n.a. -
Total Subordinated Debt on Balance Sheet 166.8 141.3 2.57 171.0 3.02 131.4 2.19 156.2 2.62
Fair Value Portion of Subordinated Debt n.a. n.a. - n.a. - n.a. - n.a. -
D. Risk Weighted Assets
1. Risk Weighted Assets 5,254.8 4,451.0 80.87 4,602.9 81.21 5,258.0 87.49 5,101.6 85.48
2. Fitch Core Capital Adjustments for Insurance and Securitisation Risk Weighted Assets n.a. n.a. - n.a. - n.a. - n.a. -
3. Fitch Core Capital Adjusted Risk Weighted Assets 5,254.8 4,451.0 80.87 4,602.9 81.21 5,258.0 87.49 5,101.6 85.48
4. Other Fitch Adjustments to Risk Weighted Assets n.a. n.a. - n.a. - n.a. - n.a. -
5. Fitch Adjusted Risk Weighted Assets 5,254.8 4,451.0 80.87 4,602.9 81.21 5,258.0 87.49 5,101.6 85.48
E. Equity Reconciliation
1. Equity 776.1 657.4 11.94 654.3 11.54 604.0 10.05 555.4 9.31
2. Add: Pref. Shares and Hybrid Capital accounted for as Equity n.a. n.a. - n.a. - n.a. - n.a. -
3. Add: Other Adjustments n.a. n.a. - n.a. - n.a. - n.a. -
4. Published Equity 776.1 657.4 11.94 654.3 11.54 604.0 10.05 555.4 9.31
F. Fitch Core Capital Reconciliation
1. Total Equity as reported (including non-controlling interests) 776.1 657.4 11.94 654.3 11.54 604.0 10.05 555.4 9.31
2. Fair value effect incl in own debt/borrowings at fv on the B/S- CC only 0.0 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00
3. Non-loss-absorbing non-controlling interests 0.0 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00
4. Goodwill 12.2 10.3 0.19 10.3 0.18 11.6 0.19 14.7 0.25
5. Other intangibles 13.0 11.0 0.20 11.2 0.20 12.2 0.20 15.3 0.26
6. Deferred tax assets deduction 4.7 4.0 0.07 4.3 0.08 4.4 0.07 7.6 0.13
7. Net asset value of insurance subsidiaries 0.0 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00
8. First loss tranches of off-balance sheet securitizations 0.0 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00
9. Fitch Core Capital 746.3 632.1 11.48 628.5 11.09 575.8 9.58 517.8 8.68
Exchange Rate USD1 = EUR0.84703 USD1 = EUR0.9487 USD1 = EUR0.9185 USD1 = EUR0.8237
Page 13
Banks
ProCredit Holding AG & Co. KGaA
December 2017 13
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