How can a stored procedure improve performance in a DB2 environment?

Stored procedures can enhance performance in a DB2 environment in various ways. One key advantage is minimizing compilation overhead. By precompiling stored procedures, DB2 can save time during execution by avoiding the need to recompile the same SQL statements repeatedly. This reduces CPU usage and improves overall system performance. Additionally, stored procedures can optimize query execution by executing complex operations on the server side, reducing network traffic and improving response times for client applications. Thus, using stored procedures can significantly enhance performance in a DB2 environment.