HCFB 9M 2017 financial results 27 November 2017 1 Disclaimer - - PowerPoint PPT Presentation

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HCFB 9M 2017 financial results

27 November 2017

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Disclaimer

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Financial highlights – consolidated

Summary of 9M 2017 performance:

• Growing profitability – net income

achieved RUB 11,0 bn;

• Improved risk metrics – NPLs (90d+)

dropped to 4,2%;

• Business volumes increased 27,4% and

resulted in 10,6% growth of the net loan book;

• Strong capital position – statutory N1.0

ratio amounted to 14,7%;

• Sufficient liquidity buffer – liquid assets

comprised 28,7% of the total assets as at 30 September 2017;

• Fitch upgraded HCFB to BB-, Stable.

Source: HCFB consolidated IFRS financials

Statement of Profit or Loss, RUB bn 9M17 9M16 Change, %

Net interest income 22,4 21,3 5,4% Net fee and commission income 7,4 8,2

• 10,6%

Operating income 29,9 28,9 3,3% Net income 11,0 4,6 139,9% NIM 13,7% 13,9%

• 0,2 p.p.

ROE 31,2% 15,3% 15,8 p.p. Cost / Income 47,0% 46,7% 0,3 p.p. Cost of risk 1,9% 7,7%

• 5,8 p.p.

Statement of Financial Position, RUB bn 9M17 2016 Change, %

Total assets 274,1 237,6 15,4% Cash and cash eqv 41,8 23,1 81,0% Loans to customers (net) 189,0 170,9 10,6% Deposits and current accounts 181,8 155,7 16,8% Total equity 50,1 43,8 14,5% NPL 90+ / Gross loans 4,2% 6,0%

• 1,8 p.p.

Deposits to liabilities ratio 81,2% 80,3% 0,9 p.p. Total CAR 25,7% 27,1%

• 1,4 p.p.

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Key business developments:

• HCFB

rebranding ads campaign “The Bank

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New Opportunities” won the creative strategy award at the IPRA GWA Eventiada Awards;

• Successful launch of shopping card – installment card for

purchases at any store both in Russia and worldwide;

• Further development of marketplace – first online platform
• n the Russian market for buying goods in installments;
• Increased share of online component: about 1,5 million

customers regularly use our online services.

Business highlights – Russia (1)

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

Net profit, RUB bn Loan book (net), RUB bn HCFB's share HCFB's #

Total unsecured loans 5 888 2,8% 7 POS loans 221 23,5% 1 Cash loans 4 383 2,2% 8 Credit cards 1 284 1,3% 13 Deposits&CA 24 762 0,7% 18

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

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Operating income structure – Russia

• 7,9%
• 18,0%

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

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Operating efficiency & loan portfolio quality

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

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Asset structure & product mix

Asset structure, RUB bn Retail loan book, RUB bn Retail loan book breakdown 9M17

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Retail deposits & current accounts

• Retail deposits and current accounts

have emerged as a stable source of RUB funding accounting for 83% of total liabilities;

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

by state-owned Deposit Insurance Agency;

• HCFB achieved stable debit cards balance.

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

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Liquidity, funding & capital position

Higher reliance on deposits lead to lower refinancing risks Strong liquidity profile 9M17 HCFB has maintained stable capital adequacy levels

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

Investor Relations Contact Details