The Home Credit Group, which provides consumer loans worldwide, reported a loss of EUR 584 million (CZK 15.3 billion) last year. A year earlier, it had a profit of EURO 400 million (10.5 billion CZK). The reason for the loss was the pandemic situation, according to Home Credit spokesman Milan Tománek.
In the first quarter, the group lost EUR 619 million (CZK 16.182 billion) due to the creation of massive reserves for pandemic risks. It ended the second half of the year with a profit of EUR 35 million (CZK 919 million). According to Tománek, the return to profitability was made possible both by the renewal of consumer demand with the gradual fading of the closure of shops and establishments in individual markets, and a significant process of digitization of the sales network.
The group provided clients with new loans for the purchase of goods and services in the amount of EUR 12.7 billion, which represents a year-on-year decrease of 37 percent. The turning point for the growth of the new loan portfolio was the third quarter of last year.
Source: CTK
