OREANDA-NEWS. On December 07, 2007 Home Credit & Finance Bank ("HCFB" or "the Bank"), rated Moody's Ba3/NP/D-, S&P B+/B, and one of the leading banks specializing in consumer banking in Russia, announced its financial results for the nine months ended 30 September 2007 in accordance with International Financial Reporting Standards (IFRS), reported the press-centre of Home Credit Group.

"HCFB continues to deliver on its strategy as a leading consumer finance bank in the Russian market and the on-going improvement in the quality of HCFB's assets, risk management procedures and product diversification is reflected by our record net profit for the nine month period. As we move towards a lending-centric retail banking model, we are setting industry standards in our product offering by delivering quality solutions for our customers that are transparent and easy to understand. We continue to closely monitor developments in the Russian banking market together with the prevailing situation in the international capital markets in order to maximise the efficiency of HCFB's funding, as well as maintaining the strong capital position of the Bank."
Jiri Smejc, Chief Executive Officer

HIGHLIGHTS
Net profit for the period of RUB 915 million (9M 2006: RUB 184 million) - an increase of over 397%.

Strong growth in net interest income to RUB 8,971 million (9M 2006: RUB 5,800 million) attributed to exceptional growth in the cash loan portfolio and the continued growth in the credit card portfolio.

Credit card activities experienced an increase of over 94% in the value of loans granted, compared to 9M 2006, maintaining HCFB's position as the second largest provider of cards in Russia with a market share of 10% and over 6,3 mln cards issued.

In line with the Bank's strategy for product diversification, HCFB saw a modest increase in the number of car loans granted and the residential mortgage loan portfolio grew to RUB 2,477 million in total, comprising approximately 5% of the gross loan book.

The Bank's continuing focus on prudent risk management procedures resulted in a further downward trend in the level of non-performing loans (NPLs) to 13,3% of gross loan book.

HCFB's branch network covers 80 regions across the Russian Federation. As at 9M 2007, HCFB had 81 representative offices, 1 branch, 58 loan offices and approximately 27,000 active point-of-sale outlets at retailers serving over 1,100 cities.

HCFB's client base comprises more than 15 million customers with 50% of these being active clients.

The liquidity position of the Bank is strong with the majority of debt securities with maturities greater than 2 years. HCFB's cumulative net liquidity position within 12 months is positive - RUB 17,6 bln.

HCFB maintains a strong capitalisation with risk weighted CAR of 21,1% assisted by the continuing strong support from its parent company - PPF Group. During the 3Q 2007 period, HCFB received RUB 1,5 bln by way of a capital injection to support the Bank's growth plans going forward.

On 30 October 2007, the international rating agency Moody's affirmed Ba3/NP/D- rating for Home Credit & Finance Bank with a stable outlook.

Full report you can download here: http://www.homecredit.net/en/press-centre/press-release/58.shtml