OREANDA-NEWS. May 14, 2008. A press conference was held in the Hotel Courtyard Marriott to summarize the bank performance of 2007, reported the press-centre of ProCredit Bank.

Last year was another successful year for ProCredit Bank Georgia.

Branch network expansion made a vital contribution to the bank development. During 2007 nine additional branches opened its doors for customers in Tbilisi and in the regions, increasing the number of branches from 33 to 41. The number of employees increased from 1,200 up to almost 1,500.

In 2007 the bank’s gross loan portfolio grew by 31% to USD 240 million. Like in previous years, 90% of loans in the business loan portfolio were for amounts less than USD 10,000. This figure demonstrates the bank’s clear commitment to serving small sized entrepreneurs as our core target group.

As to the total customer funds, they grew by 34% to USD 173 million and the total number of customer accounts reached 538,000. Almost 90,000 of them are savings and term deposit accounts, 80% of which are for amounts less than USD 1,000. Such a large number of small savings accounts demonstrate the bank’s focus on “responsible banking” that promotes the social and economic development of the country.

ProCredit Bank closed the year 2007 with a USD 6,4 million after-tax profit, up 57% in comparison to the previous year. This result shows the bank’s financial stability and strength.

New Structure of Shareholders

In the first quarter of 2008 the shareholder structure of ProCredit Bank Georgia changed.  ProCredit Holding purchased all shares of Commerzbank, which till then had kept a 1,2% stake in the bank. This share purchase was in line with the general strategy of the ProCredit group, with ProCredit Holding becoming the main shareholder in all ProCredit banks.

The current shareholder structure of ProCredit Bank Georgia is as follows: ProCredit Holding AG (Frankfurt am Main) 92,6%, Internationale Projekt Consult (IPC) GmbH (Frankfurt am Main) 7,4%.

Strategy for 2008 and future plans

In the future ProCredit Bank will remain focused on lending to very small, small, and medium sized businesses, as we are convinced that these businesses create the largest number of jobs and make a vital contribution to the economies in which they operate. Unlike most other banks we are not focused on consumer lending. Our key goal is to offer reliable lending services by establishing long-term relationship with our customers.

We will also continue encouraging a savings culture in Georgia, as we believe that savings add stability to households in the long term. The bank aims to increase its share of customer funds, with a focus on savings from private individuals.

To serve as many clients as possible, in 2008 10-15 new branches will be opened throughout Georgia which will allow us to improve our outreach in Tbilisi and in the country’s regions.

Equity Increased by GEL 11 million.

On April 10, 2008 the equity of ProCredit Bank, Georgia increased by GEL 11 million at the decision by ProCredit Holding. The additional equity will allow the bank to realize its strong growth plans during the year.