Home Credit plans to invest EUR100m in further expansion in Asia

Prague, Sept 25 (CTK) - Consumer finance provider Home Credit plans to invest over EUR100m (Kc2.5bn) in a further development of its activities in China, Vietnam and India, and in expansion of activities on new markets such as Indonesia and the Philippines over the next two years, the company told CTK Tuesday.

Asia is the primary growth driver for the Home Credit business globally, Home Credit chief executive Jiri Smejc said.

The new investment plan follows Home Credit's investments of over EUR300m (Kc7.5bn) in Asia so far. The group plans to launch activities in Indonesia in the first quarter of 2013, with the Philippines to follow in the second half of 2014.

Home Credit launched activities in Europe in 1997 and has so far served more than 28.5 million customers in the Czech Republic, Slovakia, the Russian Federation, Belarus and Kazakhstan,

It also has 2.5 million customers across China, Vietnam and India. The company has granted over EUR900m (Kc22.3bn) in consumer finance loans to individuals in Asia since 2009.

Home Credit plans to raise the number of its outlets across Asia from over 12,000 at the beginning of 2012 to a projected 25,000 by the end of the year. The group currently employs more than 8,000 people across its Asian markets.

Home Credit started to operate on the Asian market in 2004 when it opened a representative office in Beijing. In 2009, Home Credit through its parent company PPF Group received a consumer finance licence, becoming China's first non-banking lender to be fully capitalised and wholly owned by a foreign investor.

In Vietnam the Home Credit group launched operations in May 2009. Like in China, it provides hire purchase for motorcycles and consumer durable goods through over 1,000 outlets. In India, Home Credit launched pilot operations in New Delhi and the National Capital Region in January 2012.

Home Credit B.V. is fully owned by PPF Group of the richest Czech Petr Kellner. PPF is one of the largest investment and financial groups in Central and Eastern Europe with assets worth around EUR12.7bn (Kc318bn) under management.