Home Credit & Finance Bank (HCFB) reported the results of its activity in the first quarter of 2006 according to IAS.

As the bank’s accounting statements imply, the bank’s net profit within the reporting period came to 125m RUR and therefore went down by 46.6% compared to the net profit of 234m RUR during the same period of 2005. The bank’s pre-tax profit within the first quarter of 2006 came to 188m RUR. The corresponding figure for 2005 is 311m RUR. A decrease in the mentioned figures is a result of the bank’s ongoing investments into the core business development and the loan portfolio quality during the first half of 2005.

Net interest income came to 1.908bn RUR (against 1.343bn RUR in the first quarter of 2005). The bank’s operating income went up by 25% up to 1.943bn RUR (compared to 1.553bn RUR in the first quarter of 2005).

The accounting statements indicate that a trend towards stabilization of the past-due goods loans level continues. The bank’s share of the Russian market is 27.1%. Within the accounting period, the bank’s client base more than doubled and exceeded the level of 8.5m people. During the year, the total amount of credits placed with the bank increased by 19.3% up to 11.670bn RUR.

The bank also boasts a significant increase of the credit cards business: the amount of revolving lines of credit went up by 58% thus making HCFB the second biggest competitor on the Russian credit card market. Revolving lines of credit make up about 15% of the bank’s loan portfolio and are the main future growth factor. The capital adequacy ratio came to 31.3%, Tier I capital adequacy ratio came to 26.7%. This was reported by PR-department of Home Credit & Finance Bank.