Home Credit a.s. – 2008 IFRS Results: Company’s net profit increased year-on-year by 35%

Home Credit a. s. (“HC”), one of the leading providers of consumer finance products in the Czech Republic, announces its record 2008 financial results in accordance with International Financial and Reporting Standards (IFRS).

“Throughout 2008, Home Credit improved its market share by further strengthening its leading position within consumer finance in the Czech Republic and has achieved the best business results to date, as well as record profits.

In 2009, we expect further growth and enhanced profitability to continue as a result of our dominant position within consumer finance and thanks to the growth in our cash and credit card activities, combined with sophisticated risk management and a rigorous approach to the management of our operating costs. In the current year, our financial strength is to be significantly supported by the shift from external re-financing sources for Home Credit Czech operations towards internal funding from within PPF Group, which will substantially reduce Home Credit’s current dependence on turbulent financial markets.”

Erich Čomor, CEO, Home Credit a. s.


  • The volume of new loans granted increased in 2008 by 15% to CZK 9.6 billion.
  • Net loan book increased by 20% to CZK 11.6 billion compared to CZK 9.7 billion on 31 December 2007.
  • During the year 2008, total assets increased by 18% to CZK 13.1 billion.
  • Net profit for the year 2008 increased by 35% and hit record level of CZK 738 million, compared to CZK 548 million on 31 December 2007.
  • Home Credit remains the clear dominant player in the POS loans market.
  • Credit and Revolving Card operations grew 40%, up to CZK 4 billion.
  • Growth in cash loans portfolio continued to remain strong – representing a 28% increase in cash loans granted during the year 2008 to CZK 2.9 billion.
  • Thanks to strict risk management processes, the NPL ratio remained at a similar level to that of 2007.


In 2008, HC reported a strong profitable performance, further strengthening its position as one of the leading providers of consumer finance in the Czech Republic. Despite the unfavourable macroeconomic environment and the destabilisation of international financial markets, HC managed to grow the majority of its product lines, achieving the best business and financial results ever.

The volume of new loans granted has approached the level of CZK 10 billion when HC financed Czech consumers’ purchases by providing CZK 9.606 billion, which represents a 15% increase compared to the year 2007 with its new loans volume of CZK 8.322 billion.

Growth of the net loan book continued to be driven by credit cards and cash loans business lines. Credit and revolving card operations grew 40% to CZK 4 billion. Cash loans also recorded a 28% increase in volumes compared to the year 2007.

In 2009, the company intends to further grow its business by maintaining a sustainable increase in the company’s cash and card loans operations, as well as the development of its successful car loans activities. In the course of 2009, Home Credit will cease re-financing of its receivables from international markets in preference for the internal re-financing from its parent company, PPF Group. This step will mitigate against the negative impact of the current turbulence in financial markets, at the same time optimize costs of re-financing which will further positively affect the company’s performance going forward.


Milan Tománek
Head Of Group Communications, PPF Group
Tel: +420 224 174 066 / +420 725 501 741

Eva Řimnáčová
Press Spokesperson, Home Credit a. s.
Tel.: +420 541 598 461 / +420 602 631 640



Home Credit a.s. (“HC”) is one of the leading consumer finance providers in the Czech Republic. The company provides loans in the form of consumer loans, revolving loans, credit cards and cash loans. In 2008, the company has financed its clients’ purchase worth CZK 9.6 billion.

Companies of the Home Credit Group operate in Central and Eastern European, Central Asian and the Far East consumer finance markets and during 2007, had granted loans in the combined principal of EUR 3.3 billion. Home Credit Group maintains one of the leading positions in the consumer finance markets of the Czech Republic (Home Credit, since 1997), the Slovak Republic (Home Credit Slovakia, since 1999), the Russian Federation (Home Credit & Finance Bank, since 2002) and the Republic of Kazakhstan (Home Credit Kazakhstan, since December 2005). Home Credit Group also entered the Ukrainian and Belarusian market in 2006 (CJSC Home Credit Bank, Home Credit Finance and OAO Home Credit Bank respectively) and China (Home Credit Asia, December 2007).

The Home Credit Group is part of the PPF Group, which is a leading international financial group. Established in 1991, PPF Group now operates in consumer finance and retail banking. Through its stake in Generali PPF Holding the Group participates in the insurance market and asset management services. PPF Group also actively seeks investment opportunities and undertakes strategic investments in developing markets of the CEE and CIS. During its 18 years in business, PPF Group has become an important international financial investor, managing assets of EUR 8.8 billion as of 30 July 2008.