Home Credit B.V. announces 2008 consolidated IFRS results for the full year ended 31 December 2008: Net profit increased by 30.1% from 2007

Home Credit B.V. (“Home Credit Group” or “HCG”), the Netherlands based holding company for those consumer finance companies operating under the Home Credit trademark, and one of the market leaders in CEE and CIS countries, today announces its consolidated financial results for the twelve month period ended 31st December, 2008 in accordance with International Financial and Reporting Standards (“IFRS”).

“Despite the very challenging market conditions, I am delighted to announce that Home Credit Group has been able to deliver profitable growth in 2008. In 2009, we will continue to balance growth opportunities with a rigorous focus on active risk management which has been a key driver of our success to date.

“In the current environment we continue to use our capital in a very disciplined way, focusing all our go-to-market efforts on the highest yielding opportunities. The ongoing support of our parent company PPF continues to provide the Home Credit Group with a robust financial platform to help sustain HCG’s market leading positions in key CEE and CIS countries.”

Alexander Labak, Chief Executive Officer, Home Credit Group


  • Net profit for the period of EUR 41.7 million (2007: EUR 32.1 million), an increase of 30.1% y-o-y
    • This increase in profit has been driven by HCG’s continued focus on its risk management and higher yielding products across the main operating subsidiaries based in Russia, Czech Republic and Slovakia. The Group has also initiated a business optimization program which has helped to manage costs throughout the Group.
  • Loans to customers increased by 5.4% to EUR 2.54 billion (2007: EUR 2.41 billion)
    • The loan book has slowed its rate of increase. This is a reflection of HCG’s decision to concentrate on higher yielding products and cease certain less profitable and potentially higher risk products (such as car loans and mortgage business in Russia)
  • Operating income increased by 77.2% in the period to EUR 1,160.1 million (2007: EUR 654.6 million)
  • Net interest income increased 53.5% y-o-y to EUR 808.8 million (2007: EUR 526.9 million)
  • HCG’s ongoing focus on risk management has resulted in a stable level of NPLs as a percentage of the loan book despite the worsening market conditions and the reduction in portfolio growth: – 8.2% as at 31 December 2007 and 8.7% at the end of 2008
  • HCG remains strongly capitalized and continues to maintain a strong funding base and liquidity position, given the commitment from its parent PPF Group, as part of its on-going support of HCG
    • The consolidated ratio of equity to total assets maintained above 20% (22.9% as of 31 December 2008)
    • The consolidated ratio of cash and cash equivalents to total assets has grown to 15.0% as of 31 December 2008 compared to 11.0% as of 31 December 2007
  • HCG enters 2009 with a solid performance track record and will continue to focus on high margin products with shorter durations. Additionally, the growth of its loan book will be managed in order to maintain a leading market position in its markets.

More information at:


Milan Tománek
Head of PPF Group Communications
Tel: +420 224 559 573


Home Credit B.V. (“HCG”) is a holding company operating through its subsidiaries in CEE and CIS consumer finance markets. During 2008 the Group had granted loans in the combined principal of EUR 3.6 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 was established in 1991 and has interests in insurance and consumer finance, and provides sophisticated asset management services. During its 17 years in business, PPF Group has become an important international financial investor, managing assets of EUR 8.8 billion as of 30 June 2008.