HCFB 1H 2018 financial results 28 August 2018 1 Disclaimer - - PowerPoint PPT Presentation

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HCFB 1H 2018 financial results

28 August 2018

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Disclaimer

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Financial highlights – consolidated

Summary of 1H 2018 performance:

• Credit risk remained at a low level with

the share of non-performing loans (NPL) to gross portfolio arriving at 3,9%;

• New business volumes increased 29,2%,

loan book grew 7,2% during the reporting period;

• HCFB remains well-capitalized with a

statutory standalone N1.0 ratio of 13,4% as at 30 June 2018;

• Net profit amounted to RUB 6,5 bn in the

first half of 2018. The bank made higher investments in business digitalization and advertising in Russia;

• In June 2018 rating agency Expert RA

upgraded HCFB to ruA-.

Source: HCFB IFRS financials

Statement of Profit or Loss, RUB bn 6M18 6M17 Change, %

Net interest income 17,1 14,6 17,0% Net fee and commission income 3,7 4,8

• 22,1%

Operating income 20,9 19,4 7,8% Net income 6,5 7,2

• 8,9%

NIM 12,7% 13,9%

• 0,9 p.p.

ROE 23,7% 31,2%

• 7,4 p.p.

Cost / Income 50,1% 46,5% 3,6 p.p. Cost of risk 2,1% 1,6% 0,5 p.p.

Statement of Financial Position, RUB bn 6M18 2017 Change, %

Total assets 300,9 296,2 1,6% Cash and cash eqv 29,1 23,0 26,4% Loans to customers (net) 223,2 208,2 7,2% Deposits and current accounts 209,8 192,9 8,8% Total equity 56,7 52,9 7,2% NPL / Gross loans 3,9% 3,7% 0,2 p.p. Deposits to liabilities ratio 85,9% 79,3% 6,6 p.p. Loan to deposit ratio 106,3% 107,9% 1,6 p.p.

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Key business developments:

• HCFB was the first company in the market which issued a

consumer loan using fully remote customer identification;

• Increased volume of cards transactions both in debit and

credit products;

• All main contactless payment systems for mobile devices

(Apple Pay, Samsung Pay and Google Pay) became available;

• The loyalty program "Polza" won the "Loyalty Awards Russia

2018" award in two nominations: "Best loyalty program in cards" and "Most effective use of analytics".

Business highlights – Russia (1)

Note: Henceforth all data includes information about operations in Russia only

Net profit, RUB bn Loan book (net), RUB bn

Source: Frank Research Group as of 6M 2018 Source: HCFB IFRS financials Source: HCFB IFRS financials

HCFB's share HCFB's #

Total unsecured loans 6 527 2,9% 5 POS loans 238 24,2% 1 Cash loans 4 940 2,4% 7 Credit cards 1 349 1,2% 11 Deposits&CA 26 933 0,7% 17

Gross portfolio, RUB bn

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Business highlights – Russia (2)

Share of active customers using online services Share of full distance cash loans volumes POS online business volumes, RUB mn Debit cards transactions volumes, RUB bn

Source: Management data

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POS and cash loans market – Russia

POS loans – gross portfolios Cash loans – gross portfolios

Source: Frank Research Group as of 6M 2018

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Operating income structure – Russia

Interest income, RUB bn Interest expense, RUB bn Net interest income, RUB bn & NIM, % Operating income, RUB bn

Source: HCFB IFRS financials

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Operating efficiency & loan portfolio quality – Russia

Operating expenses, RUB bn Impairment allowance, RUB bn Cost-to-income & OPEX/average net loans Cost of risk & NPL dynamics

Source: HCFB IFRS financials

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Asset structure & product mix - Russia

Asset structure, RUB bn Retail loan book, RUB bn Retail loan book breakdown 1H 2018

Source: HCFB IFRS financials

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Retail deposits & current accounts – Russia

• Retail deposits and current accounts have emerged as a

stable source of RUB funding accounting for 91% of total liabilities;

• Granular deposit base: more than 90% of funds is covered

by state-owned Deposit Insurance Agency;

• Focus on debit card products resulted in balance growth.

Retail term deposits, RUB bn Debit cards balance, RUB bn Deposits to liability ratio & loan to deposit ratio

Source: HCFB IFRS financials and management data

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Liquidity, funding & capital position – Russia

Liabilities structure Strong liquidity profile as at 30 June 2018 HCFB has maintained stable capital adequacy levels

Source: HCFB IFRS and RAS financials

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http://www.homecredit.net/investors.aspx ir@homecredit.ru Bulat Zogdoev Head of Investor Relations +7 495 721 10 34

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