HCFB 9M 2018 financial results 27 November 2018 1 Disclaimer - - PowerPoint PPT Presentation

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HCFB 9M 2018 financial results

27 November 2018

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Disclaimer

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Financial highlights – consolidated

Summary of 9M 2018 performance:

• New business volumes increased 24%,

loan book grew 12% during the reporting period;

• Credit risk remained at a low level with

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

• Net profit amounted to RUB 10,2 bn in

the nine-month period of 2018. The bank made higher investments in business digitalization and advertising in Russia;

• HCFB remains well-capitalized witha

consolidated capital adequacy ratio of 24.0% and with a statutory standalone N1.0 ratio of 13,9% as at 30 September 2018;

• In October 2018 rating agency Fitch

confirmed HCFB’s credit rating at BB-.

Source: HCFB IFRS financials

Statement of Profit or Loss, RUB bn 9M18 9M17 Change, %

Net interest income 26,3 22,4 17,4% Operating income 31,7 29,9 5,9% Net income 10,2 11,0

• 7,4%

NIM 13,0% 13,7%

• 0,7 p.p.

ROE 24,2% 31,2%

• 7,0 p.p.

Cost / Income 49,1% 46,9% 2,1 p.p. Cost of risk 2,0% 1,6% 0,4 p.p.

Statement of Financial Position, RUB bn 9M18 2017 Change, %

Total assets 303,2 296,2 2,4% Cash and cash equivalents 27,1 23,0 17,4% Loans to customers (net) 232,3 208,2 11,6% Deposits and current accounts 207,8 192,9 7,7% Total equity 59,4 52,9 12,3% NPL / Gross loans 3,9% 3,7% 0,2 p.p. Deposits to liabilities ratio 85,2% 79,3% 5,9 p.p. Loan to deposit ratio 111,8% 107,9% 3,9 p.p.

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Key business developments:

• HCFB launched two new cards – an installment card under

the new brand “Freedom” and a debit card “Green Polza” for our customers who are adherents of a healthy lifestyle;

• The debit card portfolio has almost doubled over the year

reaching 48 billionrubles as at 30 September 2018;

• HCFB remains a leader in segments such as POS loans,
• nline POS loans and installments.

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 9M 2018 Source: HCFB IFRS financials Source: HCFB IFRS financials

HCFB's share HCFB's #

Total unsecured loans 6 966 2,8% 6 POS loans 245 22,5% 1 Cash loans 5 301 2,3% 7 Credit cards 1 421 1,1% 11 Deposits&CA 26 928 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

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 9M 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 September 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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