HCFB conference call 1H 2017 financial results Yuriy Andresov CEO - - PowerPoint PPT Presentation

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HCFB conference call 1H 2017 financial results

29 August 2017 Yuriy Andresov CEO Irina Kolikova CFO, Deputy Chairman of the Board of Directors Bulat Zogdoev Head of Investor Relations

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Disclaimer

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Financial highlights – consolidated

Summary of 1H 2017 performance:

• Growing profitability – net income

achieved RUB 7,2 bn;

• Improved risk metrics – NPLs (90d+)

dropped to 4,6%;

• Continuous reduction in interest

expenses by 12%;

• Business volumes grew 24%, especially in

cash loans, driven by better CRM process;

• Strong liquidity and capital position –

statutory N1.0 ratio amounted to 15%;

• Rated BBB+ Stable by RA Expert.

Source: HCFB consolidated IFRS financials

Statement of Profit or Loss, RUB bn 1H17 1H16 Change, %

Net interest income 14,6 14,1 3,3% Net fee and commission income 4,8 5,3

• 10,6%

Operating income 19,4 18,9 3,0% Net income 7,2 1,7 309,8% NIM 13,6% 13,9%

• 0,3 p.p.

ROE 31,2% 8,9% 22,2 p.p. Cost / Income 46,5% 47,3%

• 0,8 p.p

Cost of risk 1,6% 9,1%

• 7,5 p.p.

Statement of Financial Position, RUB bn 1H17 2016 Change, %

Total assets 239,3 237,6 0,7% Cash and cash eqv 23,4 23,1 1,2% Loans to customers (net) 177,4 170,9 3,8% Deposits and current accounts 154,6 155,7

• 0,7%

Total equity 46,9 43,8 7,1% NPL 90+ / Gross loans 4,6% 6,0%

• 1,4 p.p.

Deposits to liabilities ratio 80,4% 80,3% 0,1 p.p. Total CAR 27,1% 27,1% 0,0 p.p.

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Key business developments:

• Logo rebranding - the best partner for shopping;
• Launch of shopping card – installment card for purchases at

any store both in Russia and worldwide;

• Launch of marketplace – first online platform on the Russian

market for buying goods in installments;

• Polza - best loyalty banking program according to Loyalty

Awards Russia 2017.

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 5 718 2,8% 7 POS loans 207 23,2% 1 Cash loans 4 272 2,2% 7 Credit cards 1 239 1,4% 11 Deposits&CA 24 672 0,6% 23

Gross portfolio, RUB bn

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Business highlights – Russia (2)

Share of online users among active customers Share of online cash loans volumes POS online business volumes, RUB mn Debit cards transactions volumes, RUB bn

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Operating income structure – Russia

• 9,6%
• 20,1%

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 1H17

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Retail deposits & current accounts

• Retail deposits and current accounts

have emerged as a stable source of RUB funding accounting for 82% 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 1H17 HCFB has maintained stable capital adequacy levels

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Q&A session

HCFB Investor Relations ir@homecredit.ru +7 495 721 10 34