Czech Billionaire Kellner’s Home Credit Has 2014 Loss on RussiaRadoslav Tomek
Home Credit BV, a consumer-loan and banking unit of Czech billionaire Petr Kellner’s PPF Group, slipped into loss last year as the Russian ruble devaluation and economic slowdown affected business in its main market.
The company posted a consolidated net loss of 60 million euros ($64 million) compared with a net income of 324 million euros in 2013, it said in a regulatory filing to the Czech central bank. Consolidated assets dropped 24 percent to 7.04 billion euros, driven by shrinking lending in Russia.
The slowdown of the Russian economy driven by the collapse of oil prices and sanctions over the conflict in neighboring Ukraine are affecting retail lending in the country. Home Credit will continue “cautious” policy in Russia, where it has already tightened lending standards, and focus on fast-growing business in Asia, according to the filing.
Non-performing loans rose to 15.3 percent of total lending from 12.2 percent in 2013. Loans to customers shrank 29 percent to 5.06 billion euros.