Home Сredit & Finance Bank posts a net profit of RUR 414 million for Q3 2005 according to RAS
Moscow, 11/14/2005
Home Credit & Finance Bank (Ba3/NP/D- by Moody's, B-/C by S&P), one of the leading providers of consumer credit in Russia, announces its financial results for the third quarter of 2005 according to the Russian Accounting Standards (RAS)."Home Credit & Finance Bank has continued its active development in the Russian consumer loan market by extending the range of credit services and expansion of its distribution network. Capital contribution from the bank's shareholders was a milestone in the development of HCFB: it proves that Home Credit & Finance Bank is stable and receives strong support from the controlling company and gives an excellent opportunity for further Home Credit growth in Russia".
Andrey Lykov, the Chairman
of HCFB Management Board
Financial Highlights
| As of Sept. 30, 2005 TRUR | As of Sept. 30, 2004 TRUR | % | |
|---|---|---|---|
| Consumer loans granted YTD | 32,294,585 | 12,580,605 | 156.7% |
| Net consumer loans | 23,618,655 | 9,756,885 | 142.1% |
| Total assets | 39,040,829 | 14,648,245 | 166.5% |
| Total equity | 8,098,920 | 3,179,710 | 154.7% |
HCFB plans to secure its leading position in the Russian consumer credit market by launching new credit products andservices by increasing its client base and by further expanding its distribution network.
HCFB at present offers its clients more than 25 credit products with different credit conditions. The products are available through a wide network of partner shops. The distribution network doubled between end of Q3 2004 and end of Q3 this year with the number of partner shops exceeding 17,000. The HCFB's client database exceeded 5,000,000 individuals by the end of Q3 2005.
HCFB's net profit for Q3 2005 reached RUR 414.047 million according to Russian Accounting Standards. The bankposted a profit despite an increase in reserves, which is related to the dynamic growth and expansion of activities all across the Russian Federation.
In accordance with the strategy for development of HCFB, the majority shareholder increased the capital base of HCFB by over RUR 5 billion which exceeded RUR 8 billion as at 1 October 2005. The bank's shareholders believe that adequate capitalization will positively influence development of HCFB in the future.
In late 2004, Home Credit & Finance Bank launched a new credit product - the Home Credit revolving credit card. BySeptember 30, 2005, HCFB had issued more than 1 million cards and is on of the top 10 card issuers in Russia measured according to credit cards portfolio.
11/14/2005
