Home Credit and Finance Bank posts 1Q 2010 net profit of 2.5 billion roubles

Russian consumer finance provider, Home Credit and Finance Bank, has posted a 1Q 2010 net profit of 2.5 billion roubles under IFRS.

The bottom showed a 982.5% year on year jump from the 1Q 2009 net result of 229 million roubles, despite assets falling 22.4% to 86.4 billion roubles from 111.4 billion roubles a year ago and loan portfolio decreasing 4.6% year on year to 64.7 billion roubles from 67.8 billion roubles in 1Q 2009.

The Bank also said that operating income was up 5.9% to 6.3 billion roubles from 6 billion a year ago despite a falling loan portfolio, which was the result of higher quality. The current Non performing loans level is 11.1% of the gross loan book, compared with 12.9% a quarter ago.

HCFB says the results reflect the bank’s strategic approach, with increasing financial stability, dynamic business development, and efficient management in the current macroeconomic conditions.

Ivan Svitek, HCFB Chief Executive Officer and Chairman of the Management Board, added that focusing on its core competencies – consumer lending and cash loans – largely helped the Bank to outperform the market.

"HCFB completed the first quarter of 2010 with record-breaking financial results. Under macroeconomic instability, HCFB continues confident growth in full accordance with its strategy, which has proven to be efficient. The Bank’s performance remains one of the strongest in the Russian banking sector due to continuing improvements of customer service and focus on POS loans and cash loans as the two core business lines. We offer a full range of world-class banking products and services. High capitalisation, stable liquidity position, and support of the parent company are the key pillar to our operating stability.'"