Home Credit

Home Credit B.V. is an international non-bank financial institution founded in 1997 in the Czech Republic and headquartered in Netherlands.[4][5] The company operates in 10 countries and focuses on installment lending primarily to people with little or no credit history. As of 30 June 2020 the Group has cumulatively served over 135.4 million  customers.[6] Major shareholder of the Group is PPF, a privately held international investment group whose founder and major beneficiary is Petr Kellner with 88.62% stake.[7]

For other uses, see Home credit (disambiguation).
Home Credit B.V.
Home Credit Group
IndustryConsumer loans and Personal loans
Founded1997 (as Home Credit a.s.)[1]
1999 (as Home Credit B.V.)[2]
HeadquartersAmsterdam, Netherlands
Area served
Eastern Europe, Central Europe, Asia and United States
€ 4.249 billion (2019)[3]
€ 400 million (2019)[3]
Total assets€ 26.590 billion (2019)[3]
Total equity€ 2.873 billion (2019)[3]
Owner
Number of employees
116,700 (2019)[2]
Websitewww.homecredit.net

The Home Credit loan can be obtained from throughout 342.7 thousands partnering retail shops and shopping malls in ten world markets as well as at the Home Credit's own online marketplaces (Russia, China, Philippines and Vietnam). Home Credit is also presented online in its own mobile application or in a third-party online stores. In selected markets you can pay with a „HC Pay“, a QR code-based revolving credit or with Home Credit credit or shopping cards. Home Credit finances both the purchase of consumer goods through a cash-less loan transaction or other commodities, such as language courses, travel etc. through a cash loans. The loans are always issued in domestic currency of the market in which the brand operates.[8]

History

In 1997, Home Credit a.s. was founded in the Czech Republic and in 1999, the company expanded to Slovakia. In 2000s company started to expand to Commonwealth of Independent States countries - Russia, Kazakhstan, Ukraine and Belarus.[2] As of 2007 the company was the second largest consumer lender in Russia.[4] In 2010s company expanded to Asia, specifically China, India, Indonesia, Philippines and Vietnam.[2] In 2010 the company was first foreign company to set up as a consumer finance lender in China.[9] In 2015 company launched its operations in the United States of America through a partnership with Sprint Corporation.[2] The group offers loans in 434,232 retail stores and also in digital space.[10][11]

In 2017 PAG initiated investment of 2 billion RMB into Home Credit Group's Chinese business entity as an interest-bearing convertible loan.[12][13] The deal was subsequently terminated in 2018 by PAG and Home Credit Group repaid the loan with interest.[14]

In 2018 Home Credit Group initiated sale of its Czech operation consisting of Home Credit Czech and Slovak and Air Bank to Moneta Money Bank.[15] The deal was criticized as one-sided deal that gives Home Credit's subsidiaries unusually high valuation with unusual terms of the deal that would lead to renaming of Moneta Bank to Air Bank.[16] The criticism was strengthen also because of Moneta Chief Executive Tomas Spurny being historically connected to Home Credit Group majority shareholder PPF Group.[17][18] In February 2019, Moneta based on feedback from its shareholders revised offer with lower valuation.[19] In October 2019, the Home credit India has tied up with The Karur Vysya Bank Ltd, a commercial bank having its head office at Karur, Tamil Nadu, India for joint lending.

In 2019, the company was preparing IPO in Hong Kong, however it was scrapped after investors estimated the value between 5 and 7.5 billion euros, whereas shareholders were targeting market capitalization of 10 billion euros.[20]

Home Credit China

Home Credit entered China in 2007 and applied for a pilot consumer finance license in 2010.[21] Home Credit was asked by Chinese officials to help improve relationship between China and the Czech Republic in order to receive full license.[22] Since 2010, Home Credit's parent company PPF helped swing anti-communist international relations sentiment towards strong China ally.[23] In 2014, PPF helped arrange visit of the Czech president Miloš Zeman to China and subsequently helped pay for private plane for the return trip.[24] The company in 2014 also received nation-wide license for consumer finance lending.[25] In 2016, the company CEO Jiří Šmejc claimed to be proud of the impact on the revival of Czech-Chinese relations.[26] Home Credit funded a newly formed think tank, Sinoskop, to counter a longer-established China-watching body, Sinopsis.[27]

Criticism

In 2019, it was uncovered that Home Credit paid public relations company to influence public in opinion in Czechia about China.[28] Home Credit did hire an agency called C&B Reputation Management, which did marketing for Home Credit. It was also supposed to improve the Czech view of the Chinese communist regime.[28]

References
  1. Home Credit: About us
  2. Home Credit Group Annual Report 2015
  3. "Key financial data". homecredit.net. Retrieved 2019-01-31.
  4. Cienski, Jan (6 June 2007). "The man who caught a rising tide Petr Kellner has become central Europe's richest man by offering loans to a middle class on the point of prosperity". Financial Times.
  5. Financial Times: PPF to float Home Credit to fund EM expansion
  6. "Home Credit Group B.V.: Annual accounts for the year ended 31 December 2019 and Compliance Certificate". www.patria.cz. Retrieved 2021-01-18.
  7. "Our Corporate Structure". www.homecredit.net. Retrieved 2021-01-18.
  8. "Our Products". www.homecredit.net. Retrieved 2021-01-18.
  9. "China allows first foreign loan provider". Financial Times. 10 November 2010. Retrieved 22 January 2017.
  10. Menon, Shailesh (2019-01-24). "Home Credit has grown to become one of the largest consumer durables loan providers in India". The Economic Times. Retrieved 2019-01-31.
  11. "Key financial data". homecredit.net. Retrieved 2019-01-31.
  12. "PAG picks minority stake in Home Credit China operations for $296.5m". DealStreetAsia. Retrieved 2019-02-23.
  13. "Home Credit B.V.: Home Credit Group and PAG sign Strategic Partnership Agreement for cooperation in China". homecredit.net. Retrieved 2019-02-23.
  14. "PAG terminates Home Credit investment | AVCJ". avcj.com. 2018-09-07. Retrieved 2019-02-23.
  15. "UPDATE 2-Moneta gains scale to take on foreign rivals in Czech..." Reuters. 2018-10-08. Retrieved 2019-02-23.
  16. Miler, Marek (2018-11-05). "Regulace hypoték nebyla nutná, trh se dá korigovat i bez toho. Počet nových úvěrů kvůli tomu klesne až o čtvrtinu, říká šéf České spořitelny Salomon". Hospodářské noviny (in Czech). Retrieved 2019-02-23.
  17. "Na spojení Monety, Home Creditu a Air Bank by vydělali především Kellner a Šmejc". E15.cz. Retrieved 2019-02-23.
  18. "Bankéř Spurny rozšiřuje Kellnerovy řady" (in Czech). 2007-07-12. Retrieved 2019-02-23.
  19. "Czech lender MONETA lowers bid for Air Bank after shareholder feedback". Reuters. 2019-02-21. Retrieved 2019-02-23.
  20. Laca, Peter. "Czech Tycoon's Company Cancels $1.5 Billion Hong Kong IPO". bloomberg.com. Retrieved 2019-12-10.
  21. "Operations". homecredit.net. Retrieved 2019-04-22.
  22. Hála, Martin; Lulu, Jichang (2019-03-11). "Lost in translation: 'Economic diplomacy' with Chinese characteristics". Sinopsis. Retrieved 2019-04-22.
  23. Flows, Capital. "The Czech Republic's Foreign Policy U-Turn". Forbes. Retrieved 2019-04-22.
  24. "LN: Zeman consults about foreign trips with billionaire | Prague Monitor". praguemonitor.com. Retrieved 2019-04-22.
  25. "Home Credit Vietnam and China acquired". homecredit.net. Retrieved 2019-04-22.
  26. Home Credit Group (2016-04-22), Jiri Smejc speech at a Prague business forum, retrieved 2019-04-22
  27. Tait, Robert (2020-01-05). "China accused of buying influence after Czech billionaire funds PR push". The Observer. ISSN 0029-7712. Retrieved 2020-01-05.
  28. "Kellnerův Home Credit platil kampaň na podporu rudé Číny. Využil experty i novináře". Aktuálně.cz (in Czech). 2019-12-10. Retrieved 2019-12-10.
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