The Bank “home Credit” has reduced the net loss of 33 times

Net loss for the first quarter of 2016 Bank “home Credit” (Kazakhstan and Russia) decreased by 33% from 5,648 billion to 169 million rubles, follows from statements of the Bank according to international standards.

Net interest margin in the Bank increased to 13.3% in the first quarter of 2016 compared to 11.9% in the same period of 2015. In this case the Bank is 16.5% decline in net interest income from 8.8 bn to 6.9 bn In the Bank is attributed to the reduction portfolio. He declined 5.9% since the beginning of 2015 — with 178,4 billion rubles to 167,9 billion rubles.

Also decreased 18.4% to 11.1 billion rubles to RUB 9.1 billion operating income. However, the reduction of the portfolio allowed us to reduce the share of overdue loans from 13% at the end of 2015, to 11.3% in the first quarter. The Bank noted the decline in cost of risk from 21.4% in the first quarter of 2015 to 11.4% in the first quarter of 2016. The coverage ratio of overdue loans by provisions makes up 114,7%.

In addition, the volume of deposits and current accounts of individuals decreased by 19% compared with the end of last year and amounted to 138,8 billion rubles. Deposits and current accounts constitute 75,5% of the total liabilities of the Bank. Reducing the Deposit portfolio, the Bank maintains a balance of assets and liabilities on the background of the decrease of the loan portfolio, said in a press release kreditnoj organization.

The ratio of operating costs to operating income was 47.5%. A year ago the figure was 51.4 per cent. General administrative expenses fell by 24.8% to 4.3 billion rubles. As previously mentioned, in the first quarter, the Bank HCF has been a leader in the reduction of staff. In January—March the credit organization fired 806 employees. As they said Fitch analyst Dmitri Vasiliev, layoffs associated with the reduction in the loan portfolio and optimization of business. “The Bank provides loans not only in its offices but also in shopping malls and large stores. The number of agents at the point of sale can greatly be reduced in a falling market,” he said.

Bank home Loan was serviced at 31 March 2016 of about 4.3 million active clients in Russia and Kazakhstan through 326 banking offices, more than 96 thousand sales points, post offices 237 and 1132 of the ATM. On March 31, 2016, the size of the client base of the Bank amounted to 32.9 million people. According to the, Russian Bank, he occupies the 42nd place in terms of assets.