Home Credit N.V.'s non-performing loans reached 8.33% of total loans at the end of 2018, down from 9.87% compared to the previous year. Historically, the NPL ratio hit an all time high of 16.7% in 2009 and an all time low of 7.57% in 2012.
Provision coverage amounted to 129% at the end of 2018, up from 85.2% compared to a year earlier.
The bank created loan loss provisions worth of 10.4% of average loans in 2018. That's compared to 11.6% of loans the bank put aside to its cost on average in the last five years.
Comparing Home Credit N.V. with its closest peers, Aeon Credit Service Asia operated at the end of 2018 with NPL ratio of 4.38% and provision coverage of 110%, MONETA Money Bank with 2.80% and 99.9% respectively and China Merchants Bank had 1.95% of bad loans covered with 249% by provisions at the end of 2018.