Home Credit B.V.: IFRS consolidated results for the period ended 30 June 2017


Amsterdam, 29 August 2017: Home Credit B.V. (‘HCBV’ or ‘the Group’), the Netherlands-based holding company for Home Credit’s leading multi-channel consumer finance operations in CEE, Asia and the US, announces its consolidated financial results for the six-month period ended 30 June 2017 in accordance with International Financial Reporting Standards (IFRS).

“Our unique combination of businesses continued to deliver good results in the second quarter with profitable growth evident across the footprint, building on the excellent start to the year. Russia is firmly back to being one of our core strong performers, not just growing profits and volumes but creating new routes to market and delivering innovation for our customers. While there are signs of a more positive consumer environment which will no doubt benefit the Russian business going forward, the better credit quality of the operation is already evident.

Our Asian operations are developing quickly supported by targeted investment to ensure we have the best foundations for the future. China and Vietnam remained highlights in the half with new volumes up 149% y-o-y and 71% y-o-y respectively (on a local currency basis) on the back of strong growth in zero and low interest products, tools we use to secure market share and create a stronger platform for cross-selling going forward. The exciting opportunity of the Asian markets is equally clear in our ‘younger’ operations like the Philippines, Indonesia and India which are expanding their networks, opening branches and reaching more customers every day. All three delivered first-half new business volumes that were above those for full year 2016, as they establish the scale needed for profitable future growth. They are all rapidly approaching profitability.

As these markets grow – and grow in importance for the Group – they are changing the face of Home Credit, shifting us increasingly toward the high-growth and fast-moving markets of the East. Our scale and success in markets like China and Vietnam allow us to create new and stronger relationships with manufacturers and retailers across the region, underpinning our ability to offer products like our zero-interest loans and thereby attract new customers. Our experience, gained over two decades, give us the tools to carefully balance growth with risk, and investment with profitability. These are exciting times for the Group and I remain confident of our ability to deliver strong outcomes in all our chosen market.”

Jiri Smejc,
Chairman of the Board of Directors and Group Chief Executive Officer, Home Credit B.V.


Home Credit continued to build on its strong first three months of the year, delivering a net profit of EUR 133 million for the first half of 2017, more than double the EUR 59 million achieved in the year earlier period. The Group has demonstrated robust growth across its key businesses with new loans in the half up 109% year on year and the number of active customer growing a further 77% year on year, thus bringing the Group total to 26.7 million active customers. Since the end of 2016 a total of 6.6 million customers were added.

In Russia, Home Credit has continued to grow profitably, benefiting from a more stable operational environment with clear signs of improvement in the consumer sector. This is reflected in the better credit quality across the portfolio as well as improvement in the risk metrics for the business with NPLs down to 6.2%, alongside 19% year-on-year growth in new business volumes (on a local currency basis). The Russian business continues to innovate and invest in its successful multichannel platform driving the share of cash loans subscribed online in the portfolio to 25%. Cash loan cross-selling volumes generated by the mobile app rose 52% in the quarter compared to the first quarter. Almost 40% of Home Credit’s active customers in Russia are online customers. Home Credit’s business in Kazakhstan delivered one of the strongest performances in the Group with first-half profit at 63% of that achieved for the full year 2016 and excellent progress made in cash loans and new deposits.

The Asian markets remain key growth drivers as Home Credit builds the scale needed to develop even stronger relationships with retailers and manufacturers and create a solid platform for long-term profitable growth. Home Credit continues to invest in developing the consumer lending market in China with volumes more than doubling year on year while in Vietnam new volumes increased by over 70% with both markets benefiting from the success of low and zero interest rate products used for customer acquisition and cross selling. China employs more than twice the numbers it did a year ago and distribution points in China already exceed 200,000.

India, Indonesia, and the Philippines have all expanded their networks and delivered significant increases in new volumes. These new volumes for just the first six months of 2017 were already higher than the total for the full 12 months of 2016, by 11%, 16% and 22% respectively (on a local currency basis). All the operations are approaching breakeven ahead of schedule with India, which will be an important country for the Group in the future, improving its operational efficiency. The weight of the Home Credit portfolio shifting further toward the high-growth, developing Asian markets is reflected in the rise in risk costs overall although the Group remains confident that this will reduce over time as the operations in that region start to mature.


  • Group net profit was EUR 133 million in the first six months of 2017 compared with EUR 59 million for the first half of 2016, as the Russian business continued to recover strongly and operations in the larger Asian markets grew significantly, while the smaller operations are quickly approaching breakeven. Net profit for the second quarter was EUR 53 million, an increase from EUR 44 million in the year earlier quarter.
  • Operating income in the first half of 2017 increased 58% year on year to EUR 1,398 million (1H 2016: EUR 884 million). Net Interest Income was up 56% to EUR 1,062 million from EUR 679 million compared to the same period last year.
  • HCBV’s multi-channel network consisted of 364,735 distribution points as at 30 June 2017, up 34.8% from December 2016, with 362,682 POS and loan offices, 324 bank branches and 1,729 post office sites. The Group continued to expand the network in Asia, particularly in China, where the number of distribution points has once again more than doubled since June 2016. Russia continues to make strong inroads in the online channel with unique customer offerings bringing in new customers with almost 40% of active customers accessing Home Credit online.
  • New loan volume was EUR 9,672 million for the first half of 2017, up 109% year on year (1H 2016: EUR 4,631 million). In China, new loan volumes reached EUR 6,396 million (1H 2016: EUR 2,618 million) while in Vietnam new volumes increased to EUR 557 million from EUR 322 million in the same period of 2016. India, Indonesia, and the Philippines continue to show impressive volume growth, surging year on year by 276%, 205%, and 363% respectively. In Russia, new loan volumes stood at EUR 1,339 million.
  • Impairment losses (credit risk costs) were EUR 448 million in the first half of 2017, up from EUR 270 million in the same period last year, reflecting a larger loan portfolio with an increased share of new customers coming from the fast-growing Asian markets as the Group invests in building its customer platform and securing future cross-selling opportunities. This is expected to reduce as Home Credit’s operations in these markets continue to mature.
  • General Administrative and other operating expenses in the first six months of 2017 increased to EUR 744 million, up 44% from EUR 517 million in the same period last year and in line with the continued expansion of Home Credit’s business.
  • The net loan portfolio increased to EUR 12,540 million (at the end of 2016: EUR 9,866 million) reflecting strong growth in all key markets.
  • The quality of HCBV’s loan portfolio improved further year on year with the NPL (i.e. loans more than 90 days overdue) share of the gross loan book declining to 5.9% (6.1% at the end of 2016). The NPL coverage ratio rose slightly to 128.7% (at the end of 2016: 128.2%). The Russian subsidiary also further strengthened its loan portfolio, reporting a decrease in the share of NPLs to 6.2% down from 6.6% at the end of 2016.
  • HCBV’s customer deposits increased 3% in the first half compared to year end 2016 to EUR 5,539 million. The share of Current accounts and deposits from customers stands at 34% of total liabilities, down from 41% at the end of 2016.


Business Results 6M 2017 YE 2016 6M 2016
Loans granted YTD (EUR million) 9,672 11,536 4,631
Number of active clients (million) 26.7 20.1 15.1
Number of distribution points 364,735 270,537 217,597
– Number of POSs and loan offices 362,682 268,486 215,272
– Number of bank branches 324 328 360
– Number of post offices 1,729 1,723 1,965
Number of employees (thousand) 144.8 120.2 86.8



Profit and Loss (EUR million) 6M 2017 2016 6M 2016
Net interest income 1,062 1,532 679
Operating income 1,398 2,000 885
Credit risk costs (1) (448) (563) (270)
Operating expenses (2) (744) (1,115) (517)
Net result for the period 133 210 59

1) Credit risk costs represent impairment losses on the loan portfolio
2) Operating expenses comprise general administrative and other operating expenses

Financial Position (EUR million) 6M 2017 YE 2016
Total assets 17,760 14,704
Net loan portfolio 12,540 9,866
Equity 1,516 1,501
Wholesale funding 10,097 7,163
Customer deposits and current accounts 5,539 5,401

Source: Home Credit B.V., consolidated.


Profit and Loss Ratios 6M 2017 2016 6M 2016
Net interest margin (1) 13.9% 14.0% 14.3%
Net interest income to operating income 76.0% 76.6% 76.8%
Cost to average net loans (2) 13.2% 15.1% 16.3%
Cost to income ratio (3) 53.2% 55.7% 58.5%
Cost of risk ratio (4) 8.0% 7.6% 8.5%
ROAA (5) 1.6% 1.8% 1.2%
Financial Position Ratios 6M 2017 YE 2016 6M 2016
Net loans to total assets 70.6% 67.1% 64.3%
NPL ratio (6) 5.9% 6.1% 8.0%
NPL coverage ratio (7) 128.7% 128.2% 122.2%
Deposits to total liabilities 34.1% 40.9% 51.3%
Equity to assets 8.5% 10.2% 11.6%
Equity and deposits to net loans ratio 56.3% 70.0% 88.7%

Source: Home Credit B.V., consolidated.
Ratios are annualized where applicable.

1) Net interest margin is calculated as net interest income divided by the average balance of net interest earning assets.
2) Cost to average net loans is calculated as general administrative and other operating expenses divided by average net loans.
3) Cost to income ratio is calculated as general administrative and other operating expenses divided by operating income.
4) Cost of risk ratio represents impairment losses on the loan portfolio divided by average balance of net loans to customers.
5) RoAA is calculated as net profit divided by average balance of total assets.
6) NPL ratio is calculated as gross non-performing loans divided by total gross loans. The Group defines non-performing loans as collectively impaired loans that are overdue by more than 90 days as well as loans considered individually impaired.
7) NPL coverage ratio is calculated as loan loss provisions divided by gross non-performing loans.


Petr Kohout
Group Chief Financial Officer
Home Credit B.V. / Home Credit International, a.s.
Tel.: +420 224 174 319


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


Home Credit B.V. (‘HCBV’ or ‘the Group’) is an international consumer finance provider with operations in 11 countries where there is 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 over 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 invests into multiple market segments such as banking and financial services, telecommunications, insurance, real estate, metal mining, agriculture, retail and biotechnology. PPF’s reach spans from Europe to Russia, the USA and across Asia. PPF owns assets of EUR 27.0 billion (as at 31 December 2016). More information on PPF 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. Jiří Šmejc. More information on Emma Capital is available at