Fitch Ratings confirms ProCredit Bank s BBB- rating and upgrades the bank s viability rating to b+
On June 3rd, 2015, Fitch Ratings confirmed the investment grade rating of BBB- with a stable outlook rating of ProCredit Bank Romania, the only Romanian bank with 100% German shareholders, and also upgraded the bank’s viability rating from b to b+. This upgrade took into consideration the stable profitability, the good quality of the bank’s loan portfolio and the improved prospects of the Romanian economy.
ProCredit Bank Romania's Long-term Issuer Default Ratings and Support Rating are based on the potential support from its parent, ProCredit Holding AG. Furthermore, the rating of ProCredit Holding AG, , was confirmed at BBB/Stable.
The upgraded viability rating reflects the bank’s ability to maintain stable operational profit and good loan portfolio quality compared to other banks in Romania.
“The increased viability rating for ProCredit Bank Romania is a reflection of the results of our actions carried out over time. By implementing a responsible lending policy, which is adapted to each client’s particular situation, and by supporting the development of small and medium-sized enterprises, ProCredit Bank does not only actively contribute to the development of the local economy, but also follows a sustainable business model - a fact which is confirmed by the current Fitch rating”, said Dr. Antje M. Gerhold, Chairperson of ProCredit Bank Romania’s Board of Administration and a member of the Management Board of ProCredit Holding.
In 2014, according to the audited financial data, ProCredit Bank Romania recorded a net profit of over EUR 2 million, thus beingpart of the group of 17 banks on the Romanian market which registered profit last year.
The profitability recorded was due to both an increase in the loan portfolio and on the low ratio of non-performing loans. In 2014, the loan portfolio increased by 10.7 % compared to 2013, a trend which was maintained in Q1 of 2015, with an increase of 4.5% as compared to the end of 2014.
Furthermore, at the end of 2014, the non-performing loans ratio stood at 5.44% and at the end of Q1 of 2015, this figure stood at 5.18%, which is very much below the banking sector average.