Home Credit and Finance Bank, Russia: IFRS consolidated results for the six-month period ended 30 June, 2017


Moscow, 29 August 2017: Home Credit & Finance Bank (“HCFB” or ‘the Bank”), announces the consolidated financial results of operations in Russia and Kazakhstan for the six-month period ended 30 June 2017 in accordance with International Financial Reporting Standards (IFRS).

HCFB is rated by Fitch at B+, and by RA Expert at BBB+. SB JSC Bank Home Credit (Kazakhstan), a 100% subsidiary of HCFB, is rated by Fitch at B+.

“After posting an excellent first quarter, Home Credit continued to grow profitably throughout the half. Our operational environment has now stabilized and we observed signs of improvement in the consumer segment as real wages recovered and the decline in retail sales nearly stopped. Our business volumes increased 24% year on year with robust growth in cash loans, which increased almost 64%. At the same time, the level of non-performing loans once again improved across all segments while our cost of funding continued to decline following the rate cut by the Central Bank of Russia. All this creates a strong platform for Home Credit to sustain its solid performance.

This summer we started rebranding Home Credit in Russia to support our focus on becoming the best partner for shopping with our goal of providing a better customer experience by making the process simpler, more diverse and affordable. By innovating and offering unique products to customer – like our new online marketplace for consumer goods – we reinforce our already strong position in the market and our capacity for profitable growth. The ‘marketplace’ is another example of how Home Credit leads the way having created the first online platform in Russia for buying goods in instalments from across our partners, supported by quick loan approvals.

Our ability to acquire and engage with customers online strengthens each quarter. In the first half of this year, we further invested in our digital offering, increasing the share of online customers to over 38% of our active customers. Innovation is equally robust in our traditional sales channels with, for instance, the launch of a new instalment shopping card for making purchases at outlets both in Russia and worldwide. Our debit cards business is developing well, with not only an increase in the number of transactions but in total turnover terms as well. As these results show, we are well set to maintain our position as a leading consumer finance provider in Russia and to benefit from the emerging recovery of Russia’s consumer sector.”

Yuriy Andresov,
Chairman of the Management Board, HCFB

As the economic environment in Russia improved, household consumption expenditures began to rebound. The management’s actions taken last year have put Home Credit in a strong position that enabled the business to further increase new loan volumes while delivering higher profits and further improving the credit quality of its portfolio. Alongside the rebranding, Home Credit continued to made additional investment to support its success in digital business, which had an impact on operating expenditure in the reporting period, and earlier this month launched a TV advertising campaign.

Home Credit recently unveiled two important new products which have strengthened its offering to consumers. Shopping Card is a credit card that works in any store and since August can be used to purchase goods at partnership stores in installments of up to 12 months. Marketplace is Russia’s first online market that allows users to buy consumer goods and pay in instalments after a 15 minutes loan approval. The platform already includes over 10,000 items from Russia’s leading retailers. Home Credit again is winning accolades for its product offering – for example, Polza was recognized by Loyalty Awards Russia 2017 as the best loyalty program for banking.

In Kazakhstan, Home Credit delivered a very strong performance across all areas in the first half, with success in cash loans and new deposits and a stable funding base.


  • The Bank recorded net profit of RUB 7.2 billion for the first half of 2017 compared with net profit of RUB 1.7 billion a year ago, illustrating the risk metrics improvement, cost of funding decrease, and a stabilized operational environment in Russia. The operations in Kazakhstan also continued to perform well.
  • Interest income fell 2.8% y-o-y to RUB 22.9 billion (1H 2016: RUB 23.6 billion) reflecting the decrease in the loan interest rates. Interest expenses dropped 12.0% y-o-y to RUB 8.3 billion (1H 2016: RUB 9.5 billion), driven by the continued decline of retail deposits interest rates.
  • In the six-month period of 2017, net interest income was RUB 14.6 billion, up 3.3% compared to RUB 14.1 billion a year earlier.
  • Net interest margin stood at 13.6% at the end of the reporting period (1H 2016: 13.9%).
  • Operating income for the reporting period grew 3.0% year on year to RUB 19.4 billion (1H 2016: RUB 18.9 billion).
  • General and administrative expenses grew 1.2% to RUB 9.0 billion, reflecting increased investments in business digitalization. The cost-to-income ratio was 46.5% (1H 2016: 47.3%) and the cost-to-average-net-loans ratio was 10.5% during the reporting period (1H 2016: 10.5%).
  • Non-performing loans (NPLs) comprised 4.6% of total gross loans (YE 2016: 6.0%), as HCFB continued to prioritize risk-management and collection. The cost of risk of 1.6% by the end of the reporting period also proved the positive trend in terms of portfolio quality (1H 2016: 9.1%). Provision coverage of NPLs remains a healthy 138.6%.
  • Total assets increased 0.7% since the end of 2016 to RUB 239.3 billion.
  • Net loans went up 3.8% to RUB 177.4 billion at 30 June 2017 (YE 2016: RUB 170.9 billion), with RUB 101.1 billion new loans granted, which is 24.0% up compared to the corresponding period of 2016 (1H 2016: RUB 81.6 billion).
  • HCFB reported RUB 26.3 billion in Cash, Cash equivalents and Placements with banks (YE 2016: RUB 30.6 billion) and an additional RUB 21.9 billion in a high-rated bond portfolio (YE 2016: RUB 21.6 billion), which together comprised 20.1% of total assets at the end of the reporting period.
  • Customer deposit and current account balances stood at RUB 154.6 billion as at 30 June 2017, down 0.7% since the end of 2016. Customer deposits and current accounts remain the key source of funding for the Bank and comprise 80.4% of liabilities. The ratio of loans to deposits was 114.8% at the end of the reporting period,
  • HCFB remains well-capitalised with a consolidated capital adequacy ratio of 27.1% at 30 June 2017 (YE 2016: 27.1%). The stand-alone capital adequacy ratio, based on standards set by the Central Bank of Russia, was 15.1% at the end of the reporting period.
  • HCFB served about 4.1 million active customers through 290 bank branches, over 105 thousand points of sale and loan offices, 222 post offices and 1,133 ATMs across Russia and Kazakhstan. The Bank’s client base comprised 34.8 million customers at 30 June 2017.


Balance Sheet (RUB million) 1H 2017 YE 2016 Change %
Total assets 239,267 237,591 0.7
Net loan portfolio 177,440 170,945 3.8
Equity 46,892 43,797  7.1
Income Statement (RUB million) 1H 2017 1H 2016 Change %
Operating income 19,421 18,858 3.0
Profit / (Loss) before tax 8,983 2,226 303.5
Net profit / (loss) 7,151 1,745 309.8


1H 2017, % 2016, % 1H 2016, %
Return on average assets (ROAA) (1) 6.0 3.2 1.4
Return on average equity (ROAE) (2) 31.2 19.1 8.9
Cost-to-income ratio (3) 46.5 47.3 47.3
Capital adequacy ratio 27.1. 27.1 26.0
NPL (4) 4.6 6.0 9.4
Cost of risk (5) 1.6 6.5 9.1

1) RoAA is calculated as net profit for the period divided by average balance of total assets.
2) RoAE is calculated as net profit for the period divided by average balance of equity.
3) Cost-to-income ratio is calculated as general administrative expenses and impairment losses on non-financial assets divided by operating income.
4) NPL ratio is calculated as gross non-performing loans (loans which are contractually overdue for more than 90 days) divided by total gross loans.
5) Cost of risk represents impairment losses on loan portfolio for the period divided by average balance of net loans to customers.

For full details of HCFB’s 1H 2017 financial results, please visit:


Bulat Zogdoev
Head of Investor Relations
Home Credit and Finance Bank
Tel.: +7 495 721 10 34


Iren Shkarovskaya
Head of Strategic Communications
Home Credit and Finance Bank
Tel.: +7 495 514 1019

Milan Tomanek
Head of Group Public Relations
Home Credit B.V. (Home Credit International, a.s.)
Tel: +420 224 174 066


Home Credit & Finance Bank [Fitch B+, RA Expert BBB+] specialises in retail finance in Russia and Kazakhstan. HCFB offers its clients a wide range of credit products and banking services. The Bank’s database comprises over 34.8 million contacts. HCFB’s products are distributed through over 105 thousand points of sale and loan offices in Russia and Kazakhstan. The Bank’s network also comprised 290 branches, 222 post offices and 1,133 ATMs across the Russian Federation and Kazakhstan as at 30 June 2017.

More information is available at,

Home Credit B.V. (“HCBV” or ‘the Group’) is an international consumer finance provider with operations in 11 countries with high potential to grow. Founded in 1997, we focus on responsible lending primarily to people with little or no credit history. Our services are simple, easy and fast. We operate in highly attractive markets with significant barriers to entry. We are a leading provider of consumer finance in selected countries. It is our experience and knowledge across the different markets, which sustainably puts us ahead of our competitors. We drive and broaden financial inclusion for the unbanked population by providing a positive and safe borrowing experience – the first for many of our customers. We promote higher living standards and meet borrowers’ financial needs. Our 144.8 thousand employees have so far served 83.7 million customers through the vast distribution network comprising 364,735 points of sale, loan offices, branches and post offices. HCBV’s total consolidated assets reached EUR 17.8 billion as at 30 June 2017. More information on HCBV is available at

The majority shareholder (88.62% stake) of Home Credit B.V. is PPF Financial Holdings B.V., a 100% subsidiary of PPF Group N.V. (“PPF”). PPF Group invests into multiple market segments such as banking and financial services, telecommunications, biotechnology, real estate, retail, insurance and agriculture. PPF’s reach spans from Europe to Russia, the USA and across Asia. PPF Group owns assets of EUR 27.0 billion (as at 31 December 2016). More information on PPF Group N.V. is available at

A minority stake (11.38%) of Home Credit B.V. is held by EMMA OMEGA LTD, an investment holding company ultimately owned by Mr. Jiri Smejc.