Home Credit 2019 Pretax Profit Up 30%

Petr Kellner

The Home Credit financial group, which provides consumer loans in many countries around the world, increased its pre-tax profit by 30 percent to EUR 613 million last year. The group grew the volume of loans issued by 10 percent and its net interest income by 14 percent. Home Credit provided one loan every second last year.

Central Europe, Russia, and Kazakhstan were the drivers of Home Credit’s growth last year. South and Southeast Asia recorded the highest credit growth. This was due to the digitization of retail sales and the increase in online sales. The group also saw a 60 percent increase in users of its mobile app growing to 70 million people. The market place, which offers consumer goods, has been introduced in China and Russia in other countries. In China, the number of daily users increased by 40 percent.

Home Credit financed 32.8 million purchases of goods and cash loans last year. The volume of loans provided increased by 11 percent to EUR 21.4 billion. Net interest income increased by 14 percent. The company’s share of non-performing loans fell markedly, reaching 5.6 percent at the end of 2019.

Operating revenues reached 4.2 billion euros last year, and growth significantly outperformed operating costs. At the end of last year, the group’s capital grew to EUR 2.9 billion.

Home Credit provides consumer loans in many countries around the world, was established in the Czech Republic, and is based in the Netherlands. Its majority owner is the PPF group owned by the Czech billionaire Petr Kellner.