PPF plans to sell or acquire partners in certain mortgage markets | The mighty 790 KFGO

PRAGUE (Reuters) – Czech investment group PPF is considering selling or taking on partners in units of its consumer finance business in some countries where it sees limited potential, PPF’s chief financial officer said on Thursday. Katerina Jiraskova.

The PPF can also seek funding partners in other promising markets and continue on its own where the prospects are best, she told Reuters in an interview.

Home Credit has taken a hit since the start of the coronavirus pandemic.

The company recorded a loss of 178 million euros ($201.14 million) in the first half of 2021, caused by the write-off of old portfolios – much of it in China – and the impact of the pandemic in India. .

When asked what the group, also operating in Vietnam, Indonesia, the Philippines, Kazakhstan, Russia as well as the Czech Republic and Slovakia, would look like a year from now, Jiraskova replied: “Hard to say. “.

“There are countries where we think there is great potential for development and we want to develop them further, and we are quite happy to develop them further on our own,” she said.

“There is a second category where we view the potential for value creation as limited, limited growth, so these countries could potentially be sold, associated with someone,” she said, declining to identify. which countries belonged to which category.

Another group of countries has potential, but Home Credit could invite partners into the business to provide wholesale funding for its loans, she said.

Home Credit saw its operating revenue in China drop to 462 million euros in the first half, from 1.08 billion a year ago. It said its other Asian markets, except India, had improved since 2020.

PPF has put its Czech and Slovak mortgage businesses up for sale to MONETA Money Bank as part of a proposed transaction to be voted on by MONETA shareholders on December 20.

($1 = 0.8850 euros)

(Reporting by Jan Lopatka and Jason Hovet)