BaFin Increases Capital Requirements for ProCredit Holding

The German Federal Financial Supervisory Authority (BaFin) announced an increase in capital requirements for ProCredit Holding AG by 0.75 percentage points, effective today. This adjustment follows a review of the company's credit processes, as initially communicated by ProCredit Holding in March 2025.

The increase aligns with the German Banking Act, identifying gaps in the company's credit and risk provision processes. However, ProCredit Holding is actively working on measures to address these issues. Despite these changes, the capital requirement hike did not affect medium-term projections for return on equity and loan portfolio growth, nor the company's dividend policy.

This adjustment also accounts for a methodological revision in SREP, which reduced capital requirements by 1.25 percentage points. Thus, the overall increase stands at 0.75 percentage points, bringing the CET1 capital ratio to 9.9% for June 2025.