Annual Report 2010 - ProCredit Bank
Annual Report 2010 - ProCredit Bank
Annual Report 2010 - ProCredit Bank
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36<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong><br />
aiming to strike the right balance between a<br />
shared developmental goal – reaching as many<br />
small enterprises and small savers as possible –<br />
and achieving commercial success.<br />
Strong shareholders provide a solid foundation<br />
for the <strong>ProCredit</strong> group. It is led by <strong>ProCredit</strong><br />
Holding AG, a German-based company that was<br />
founded by IPC in 1998. <strong>ProCredit</strong> Holding is a<br />
public-private partnership. The private shareholders<br />
include: IPC and IPC Invest, an investment<br />
vehicle set up by IPC and <strong>ProCredit</strong> staff<br />
members; the Dutch DOEN Foundation; the US<br />
pension fund TIAA-CREF; the US Omidyar-Tufts<br />
Microfinance Fund; and the Swiss investment<br />
fund responsAbility. The public shareholders<br />
include the German KfW <strong>Bank</strong>engruppe (KfW<br />
banking group); IFC, the private sector arm of the<br />
World <strong>Bank</strong>; the Dutch development bank FMO;<br />
the Belgian Investment Company for Developing<br />
Countries (BIO) and Proparco, the French Investment<br />
and Promotions Company for Economic<br />
Co-operation. The group also receives strong<br />
support from the EBRD and Commerzbank, our<br />
minority shareholders in Eastern Europe, and<br />
from the Inter-American Development <strong>Bank</strong> (IDB)<br />
in Latin America. With the strong support of its<br />
shareholders and other partners, the <strong>ProCredit</strong><br />
group ended the year with a total capital adequa-<br />
cy ratio of 16.5% – a figure that reflects their confidence<br />
in the group.<br />
<strong>ProCredit</strong> Holding is not only a source of equity<br />
for its subsidiaries, but also a guide for the development<br />
of the <strong>ProCredit</strong> banks, providing the<br />
personnel for their senior management and offering<br />
support in all key areas of activity. The<br />
holding company ensures the implementation of<br />
<strong>ProCredit</strong> corporate values, best practice banking<br />
operations and Basel II risk management<br />
principles across the group. The group’s business<br />
is run in accordance with the rigorous regulatory<br />
standards imposed by the German banking<br />
supervisory authority (BaFin).<br />
<strong>ProCredit</strong> Holding and the <strong>ProCredit</strong> group place<br />
a strong emphasis on human resource management.<br />
Our “neighbourhood bank” concept is not<br />
limited to our target customers and how we reach<br />
them; it also concerns the way in which we work<br />
with our staff and how we encourage them to work<br />
with their customers. The strength of our relationships<br />
with our customers will continue to be<br />
central to working with them effectively in <strong>2010</strong><br />
and achieving steady business results. In <strong>2010</strong><br />
there was a strong focus on staff quality and efficiency,<br />
which resulted in a 20% reduction in the<br />
number of staff over the year. This focus has been