Home Credit & Finance Bank sees net profit plunge 90% in Q3 compared with Q2
MOSCOW. Oct 14 (Interfax) - Home Credit & Finance Bank posted a net profit of 634 million rubles in the third quarter of 2009, 90.05% less than the second quarter profit of 6.374 billion rubles, the bank said in a statement.
The bank said the lower profit was the result of declining earnings on hedging operations and greater loan provisioning.
"We remain profitable despite the provisioning. A conservative approach to reserving is appropriate in the current environment and enables the creation of an additional margin of safety above and beyond Central Bank requirements and will ensure our profitability until the end of the year," Managing Director Ivan Svitek told Interfax.
It was reported earlier that HCFB posted a net profit of 1.654 billion rubles in the first quarter. Thus, its net profit through the first nine months of the year is 8.662 billion rubles in the first quarter. Thus, its net profit through the first nine months of the year is 8.662 billion rubles.
That is 10 times more than the net profit in the first nine months of 2008.
HCFB was the 35th biggest Russian bank by assets according to the Interfax-100 list as of the end of the first half of 2009.