PPF Group N.V. announces its financial results for HY 2008
Total equity of PPF Group has increased almost three-fold, exceeding EUR 4 billion
PPF Group N.V. has announced today its audited consolidated financial results for the half-year 2008 (as at June 30, 2008). The Group continued growing in line with its expansion strategy, by pursuing further its activities in the area of consumer finance and retail banking on such markets as Russia, Czech Republic, Slovakia, Ukraine, Kazakhstan, Belarus and China. The Group is entering Vietnam as well.
- Total equity increased almost three-fold in HY 2008: from EUR 1.432 bil. as at June 30, 2007 to EUR 4.149 bil. as at June 30, 2008
- Net profit for the HY 2008 has reached EUR 2.732 bil., compared to EUR 215 mil. as at June 30, 2007
- Total assets decreased year-on-year 13% from EUR 10.076 bil. to EUR 8.787 due to the change in ownership structure with respect to the Group’s insurance assets. As a financial investor PPF Group N.V. executes “significant influence” within newly created insurance venture Generali PPF Holding.
Financial statements for the HY 2008 include the impact of the transaction with Generali Group, which has been closed in January 2008. This transaction resulted into creation of a new entity, Generali PPF Holding B.V., into which the both groups were contributed with their insurance assets in the CEE region. Subsequently, PPF Group sold a part of its stake in the holding so that the final shareholding of PPF Group in Generali PPF Holding represents 49%, while Generali’s stake represents 51%.
Jiri Smejc, PPF Group N.V. shareholder, comments on HY 2008 results: “A significant equity growth alongside with a substantial increase of net profit contributed to the Group’s financial stability. Through systematic effort and conservative re-financing, the Group has managed to secure itself in the view of possible impacts of the current market situation. It has thus created prerequisites to exploit the current market circumstances as investment and business opportunity. Now we are focusing on our fast adaptation to the economic growth’s slowdown and to the global lack of liquidity. Consumer finance franchise under the Home Credit brand on the markets of CEE, CIS and Far East remains our strategic priority. For example, a total amount of USD 1.5 bil. has been secured with the Group’s support as funding for consumer finance operations in Russia itself. The actual goal is to use the decrease of the competitive pressure, as a result of the liquidity shortage, in order to achieve higher financial performance, accompanying by the improvement of the risk portfolio profile. The Group is committed to continuing its investments into the Russian market by diversifying its investment portfolio among such segments as retail services, production and raw material exploration."