(RTTNews) - ProCredit Holding AG Tuesday updated the guidance for the group's return on equity for the 2025 financial year. The return on equity is now expected to be 7 - 8%, compared to previous guidance of around 10%.
The adjustment was made in response to an increase in the assumed loss allowance for the 2025 financial year. The current expectation for loss allowance is higher than the previous assumption of "continued low cost of risk".
In the third quarter, loss allowance of EUR 16.6 million was booked, relating largely to project finance.
The Management Board has also updated its assessment on the magnitude and timing of potential releases of loss allowance. Accordingly, the updated forecast for return on equity no longer assumes a possible release in the current financial year.
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