Financial results for 9 months ended 30th September 2006

Moscow, 12/06/2006

Continued stable and profitable growth with a net profit increase to RUB 184 million

Home Credit & Finance Bank ("HCFB") [Moody's Ba3/NP/D-, S&P B/C], one of the leading providers of consumer credit in Russia, announces its financial results for the nine-month period to 30 September 2006 in accordance with International Financial and Reporting Standards (IFRS).

Highlights

• Net profit for the nine-month period increased to RUB 184 million from a net loss of RUB 195 million in the prior year period
• Total volume of loans granted in the period rose 20.6% over the prior period to RUB 37.5 billion
• HCFB's market share in the POS business remains stable and stood at over 26% and the market share for credit cards rose to 7.2% making the Bank the second largest provider of credit cards in Russia. Credit card loans now account for 27.6% of the Bank's gross loan portfolio
• Sustained improvement in net interest income to RUB 5.8 billion - an increase of 45.5% from RUB 4 billion as the Bank focuses successfully on the higher yielding products, including credit cards
• Cash loans activities which were introduced earlier in 2006 were ahead of expectation and now account for approximately 2% of the gross loan book
• Capital position of the Bank remains strong with a risk weighted CAR of 26.3% (December 2005: 32.2%)
• HCFB client database exceeds 10 million customers

HCFB reported a net profit of RUB 184 million for the nine month period ended 30th September 2006 compared to a net loss of RUB 195 million in the prior year period. The result was driven by the further improvement in net interest income of 45.5% to RUB 5.8 billion as the Bank continues to focus on the higher yielding products, including revolving credit card loans.
The total volume of loans granted by the Bank in the nine month period stood at RUB 37.5 billion, which represents an increase of 20.6% when compared to the corresponding period for 2005.

The amount of credit card loans outstanding as at 30 September 2006 stood at RUB 8.7 billion. Credit card loans account for 27.6% of the gross loan book and management expects this trend to increase in the final quarter and into the following year. HCFB'S market share for credit card loans increased to 7.2% reinforcing the Bank's position as the second largest provider of credit cards across Russia with nearly 4 million cards in issue.
The Bank's market share for point of sales (POS) activities remained stable at over 26% and the volume of newly generated business for the nine months ended 30th September 2006 amounted to RUB 29 billion, a decline of 3.5% year-on-year. The marginal decrease in the Bank's POS loan book is in line with HCFB's stated strategy of focusing on increasing revenues from credit card and cash loan operations as well as reflecting the stricter underwriting criteria and fraud prevention measures that were introduced earlier in 2006.
Following the successful piloting of its cash loan product in Nizhni Novgorod and Saint Petersburg, HCFB formally launched its cash loan operations through the post office network in August as part of the Bank's on-going focus on securing profitable growth. As at 30th September cash loans accounted for 2% of the gross loan book and management expects this trend to continue.

HCFB maintains a strong capitalization position with a capital adequacy ratio of 26.3% as at 30th September and with a risk weighted Tier 1 capital position of 23.9%. HCFB continues to benefit from the full support of the parent company, the PPF Group.

Financial Summary

Notes to Editors:
Home Credit & Finance Bank (Moody's Ba3/NP/D-, S&P B/C) has been operating in the Russian consumer loan market since 2002. It has become one of Russia's market leaders with over 26% market share of the point-of-sale credit market as of 30 September 2006. HCFB is majority controlled by the international company, the PPF Group.
HCFB offers its clients a wide range of credit products with variable credit terms. As of 30 September 2006, HCFB's products have been distributed through approx. 20,000 POS outlets across over 1,100 cities throughout Russia. The bank's regional network comprises 71 representative offices across the Russian Federation. At the end of 2004, HCFB entered the revolving credit business in Russia and with nearly 4 million credit cards in issue to date has become one of the leaders of revolving credit in Russia with 7.2% market share as at the end of September 2006.
Home Credit & Finance Bank is a member of the Home Credit Group. The companies of the Home Credit Group have been operating in the Central and Eastern European consumer loan markets since 1997. The Home Credit Group belongs to the PPF international group of companies which has interests in insurance and consumer finance, and provides complex asset management services. During its 15 years in business, PPF has become a leading international financial investor, managing assets of approximately USD 10 billion as at the end of 2005.

12/06/2006