We now expect ProCredit Holding (PCB) to reach its mid-term ROE target of 10% in FY21, driven by continued scaling of its operations through consistent loan book expansion (we forecast 13% growth in FY21) while maintaining the high credit quality of its portfolio. The group has also benefitted from some recent net interest margin (NIM) expansion. Despite the above, it continues to trade at a significant discount to book value (current FY21 P/BV at 0.6x), which we find hard to justify.  ...