OREANDA-NEWS. October 17, 2008. Home Credit B.V., a market leader in consumer finance across CEE and CIS markets, announced its consolidated financial results for the six month period ended 30 June 2008 in accordance with International Financial and Reporting Standards (“IFRS”), reported the press-centre of Home Credit B.V.

"I am delighted to announce excellent financial results of Home Credit Group. Our disciplined international expansion supported by rigorous risk and operational management has paid off and Home Credit Group continued to deliver profitable growth. Our strong operating performance and the outstanding, continuous support from our parent company, PPF Group, represent a critical platform in the current difficult financial environment to further strengthen our profitability. Home Credit Group is moving forward to reallocate its resources to distribution channels, which maximize our profitability, while aggressively executing cost cutting measures to offset the rising costs of capital. We remain confident in the Group's ability to successfully compete in the challenging market environment going forward."

Alex Labak, Chief Executive Officer of Home Credit Group
Net profit for the period of EUR 23 million (H1 2007: EUR 6 million), an increase of 283 % y-o-y

As market conditions have worsened since August 2007, affecting financial institutions' access to liquidity, HCG has been well positioned to significantly increase its net profit. Major portion of the net income is generated by HCFB (HCG's subsidiary in Russia) followed by HC, a.s. (Home Credit in the Czech Republic) and is driven mainly by the increase in revenues and improved credit quality as a result of healthy asset growth.

Loans to customers increased by 11.5 % to EUR 2.685 billion (31.12. 2007: EUR 2.408 billion)

Operating income increased by 67 % in the period to EUR 456 million (H1 2007: EUR 273 million)

Net interest income increased 55 % y-o-y to EUR 384 million

HCG's ongoing focus on risk management has resulted in a reduction of NPLs (loans overdue by 90-360 days1) from 10.1 % on 30 June 2007 to 8 % on 30 June 2008

HCG continues to have a strong funding base and has successfully executed the majority of its planned market funding transactions totaling EUR 1.6 billion despite challenging market conditions.

This sum includes, for example, the following: the first securitization of credit card receivables in Russia for a total amount of RUB 8.2 bill; HCFB's (HCG's subsidiary in Russia) domestic bond issue for a total amount of RUB 4 bill; two Eurobond issues of USD 500 million and USD 450 million respectively; a syndicated loan facility of EUR 176.5 million; and, two syndicated loan facilities of SKK 4.725 bill for HCS (Slovakia). With the exception of HCFB funding, the above is supported by a EUR 900 million loan from HCG's parent company PPF Group N.V.

HCG enjoys the ongoing strategic support of its parent company, the PPF Group, as it enters into the second half of the year.

1) HCG’s policy is to write off loans more than 360 day overdue

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