June 28, 2019 / 10:58 AM / 4 months ago

UPDATE 1-Home Credit BV 2018 net income up 80%; assets excluding United States

(Adds details, IPO plans)

PRAGUE, June 28 (Reuters) - Consumer lender Home Credit’s net income for activities excluding its United States business and some other assets grew by 80% last year to 571 million euros ($650 million), the Czech group said on Friday.

The results cover the Home Credit BV (HCBV) unit of its parent Home Credit Group, which separately reported full-year net profit of 394 million euros, up from 232 million a year ago.

HCBV said that in the first quarter of 2019, net profit reached 155 million euros for the activities in nine markets outside the United States - China, India, Vietnam, Indonesia, Philippines, Russia, Kazakhstan, the Czech Republic and Slovakia.

It said last year it had a “slight loss” in the same period.

Loans grew 12.8% last year to 17.43 billion euros, it said. Net interest margins rose by 1.2 percentage point to 15.8% and cost-to-income ratio dropped by 8 percentage points to 42.2%.

“HCBV was able to sustain profit growth well ahead of the cost of expanding its operations in SSEA, China, CIS and CEE, through a combination of an increased cash loan portfolio and a higher average yield on assets,” the Amsterdam-registered company said in a statement.

Home Credit did not comment in the release on the reason for transferring the U.S. and some other small operations to the parent group, a transaction done this year.

Las month, sources with direct knowledge of the matter said Home Credit had appointed Citigroup HSBC Holdings and Morgan Stanley to lead a Hong Kong initial public offering (IPO) of at least $1 billion, expected in September or October.

In May, Czech investment group PPF increased its holding in the parent Home Credit Group after buying a 2.5% stake from co-shareholder Emma Capital in a deal valuing the company at 8.5 billion euros.

PPF, owned by the Czech Republic’s richest businessman, Petr Kellner, raised its stake to 91.1%, with fellow Czech investment group Emma Capital holding the remaining 8.9%. ($1 = 0.8787 euros) (Reporting by Jan Lopatka, editing by Louise Heavens)

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