Home Credit and Finance Bank posts 9M 2009 Net Profit of 3.09 billion Roubles
The bottom line is up by 32% from the 9M 2008 Net Profit of 2.3 billion Roubles, despite Net interest income falling 2.1% to 13.8 billion Roubles, and its loan book falling 16.7% year on year to 68.2 billion Roubles.
The Bank attributed its increase in profitability to the business optimisation programme introduced by the Bank a year ago, with the lower gross loan portfolio being the result of the effective risk management, with NPL’s as a percentage of the loan book remaining steady at 15.9%, and 98% covered by provisions.
Ivan Svitek, CEO at HCFB, was optimistic about the results and said the business optimization programme helped the Bank to further develop its fast moving retail banking sector.
“We are delighted with the results we achieved over the reporting period with the solid profitability of RUB 3.1 billion which is above our expectations. The increase in all Profit & Loss lines, significant reduction of risk-costs were the results of business optimization programme we introduced last year. This programme has enabled the Bank to continue investing into retail banking development which is going full speed ahead. We strengthen our position on the consumer finance market having all the capacities and resources to be successful in this segment. The fourth quarter is historically the best season of the year and we are focusing on growing our business.”