Home Credit Bank posts 1H 2011 net profit of 5.8 billion roubles, as lending grows

Home Credit Bank posts 1H 2011 net profit of 5.8 billion roubles under IFRS
Home Credit Bank, one of Russia’s leaders in banking retail, has posted a 1H 2011 net profit of 5.8 billion roubles under IFRS.

The bottom line was up 18.6% year on year, with retail deposits and current accounts growing 63% to reach 28.5 million roubles in total and its credit portfolio also growing 42% year on year to 82.9 million roubles, as the NPL ratio dropped to 6.6 from 6.9% fixed as of December 31 2010.

The bank highlighted its expansion to 488 branches countryside, with Ivan Svitek, Head of the board saying focus on expansion helped to improve helped it to improve on quality and quantity to outperform the market.

“HCB’s indicators showing credit portfolio growth were significantly up during the last year, with a cash credit portfolio having almost tripled. A contribution to that was our strategy to expand a distribution network, that grew significantly in this period, which let us both increase credit volumes and attract more deposits.Key indicators of our operations – ROAA and ROAE – are much higher that the market average and comprise 10.9% and 42.4% accordingly. Considering the current situation in the world market, we always keep track of how things are developing. But we are sure we’ll be able to maintain high efficiency and profitability of our business. We’ll keep on demonstrating stable results in the fuiture.”

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