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TCS Group Holding PLC (TCS)
TCS Group Holding PLC reports IFRS results for 4Q and FY 2022
15-March-2023 / 19:40 MSK
The issuer is solely responsible for the content of this announcement.
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
TCS Group Holding PLC reports IFRS results for 4Q and FY 2022
• Total revenues grew 34% to RUB 366.2 bn in FY’22 (FY’21: RUB 273.9 bn)
• Total customers reached 28.9 mn in FY’22 (FY’21: 20.8 mn)
• Non-credit business lines amounted to 52% of revenues
• ROE was 10.9% in FY’22, reaching 21.5% in 4Q
LIMASSOL, CYPRUS — 15 March 2023. TCS Group Holding PLC (MOEX: TCSG)
(“TCS”, “We”, the "Group", the “Company”), a leading provider of financial
and lifestyle services via its digital ecosystem, today announces its
consolidated IFRS results for the three months and twelve months ended 31
December 2022.
KEY PERFORMANCE METRICS
Key metrics, mn 4Q'22 3Q'22 4Q'21 Q-o-Q Change, % Y-o-Y Change, %
Total customers 28.9 26.3 20.8 9.9% 39%
Active customers 20.2 18.3 14.5 10.4% 39%
Monthly active users 22.5 20.6 15.4 9.2% 46%
(MAU)
Daily active users (DAU) 9.3 8.7 5.8 6.9% 60%
FINANCIAL AND OPERATING REVIEW
RUB bn 4Q’22 4Q’21 ∆ 3Q’22 ∆ FY’22 FY’21 ∆
Interest income 53.2 45.8 16% 50.9 4% 205.8 163.8 26%
Interest expense -12.4 -10.4 19% -14.2 13% -61.9 -31.2 98%
Net interest income 40.8 35.4 +15% 36.7 11% 143.9 132.6 +9%
Net interest income 24.3 28.5 -15% 18.4 32% 76.4 110.9 -31%
after provisions
Fee and commission 28.8 27.5 5% 27.8 4% 125.1 86.1 45%
income
Fee and commission -9.2 -11.6 -21% -9.1 1% -41.0 -38.8 6%
expense
Net fee and commission 19.6 15.9 23% 18.7 5% 84.1 47.3 78%
Income
Total operating -42.0 -32.7 28% -34.1 23% -139.3 -102.9 35%
expenses
Profit before tax 14.7 21.9 -33% 9.1 62% 29.8 81.0 -63%
Net profit 10.7 16.6 -36% 5.9 81% 20.8 63.4 -67%
Ratios 4Q’22 4Q’21 ∆ 3Q’22 ∆ FY’22 FY’21 ∆
Return on equity 21.5% 39.2% -17.7 12.2% 9.3 10.9% 42.5% -31.6
p.p. p.p. p.p.
Net interest margin 13.4% 13.7% -0.3 12.7% 0.6 12.2% 15.1% -2.9
p.p. p.p. p.p.
Cost of risk 9.3% 4.9% +4.3 11.3% -2 p.p. 9.9% 4.5% +5.4
p.p. p.p.
RUB bn 31 Dec 2022 31 Dec 2021 ∆
Total assets 1 599 1 318 +21%
Net loans and advances to customers 606 606 0%
Cash and treasury portfolio 837 538 +56%
Total liabilities 1 394 1 142 +22%
Customer accounts 1 192 946 +26%
Total equity 206 176 +17%
Ratios 31 Dec 2022 31 Dec 2021 ∆
Share of NPLs 12.1% 8.6% +3.5 p.p.
Tier 1 capital ratio 16.9% 20.2% -3.3 p.p.
Total capital ratio 16.9% 20.2% -3.3 p.p.
In FY’22, the Group’s total revenue grew by 34% year-on-year to RUB 366.2
bn (4Q’22: RUB 91.6 bn, +14%YoY). Gross interest income increased by 26%
year-on-year to RUB 205.8 bn for 2022 (4Q’22: RUB 53.2 bn, +16%YoY),
driven by the expansion of our customer base.
Gross yield on loan portfolio increased to 24.6% in 4Q’22 (4Q’21: 24.4%),
mainly as a result of changes in the loan mix. The interest yield on the
Group’s securities portfolio decreased to 5.2% (4Q’21: 5.9%), in
connection with declining rouble interest rates towards the end of the
year.
In FY’22, interest expense grew by 103% year-on-year to RUB 57.8 bn
(4Q’22: RUB 11.3 bn, +19% YoY) due to increased market rates in the first
half of the year and the significant expansion of our customer base. The
Group’s cost of borrowing reached to 5.4% in FY’22 (4Q’22: 4.0%) as
compared to 3.5% in FY'21 (4Q’21: 4.0%)
In FY’22, net interest income grew by 9% year-on-year to RUB 143.9 bn
(4Q’22: RUB 40.8 bn, +15%YoY).
Cost of risk increased to 9.9% in FY’22 (4Q’22: 9.3%) from 4.5% in FY’21
(4Q’21: 4.9%). Risk-adjusted net interest margin decreased to 6.5% in
FY’22 versus 12.7% in FY’21, while it increased quarter-on-quarter to 8.0%
in 4Q’22 from 6.4% in 3Q’22 (4Q’21: 11.0%).
In 4Q’22, non-credit revenue represented 52% of the Group’s revenue and
43% of the Group’s profit before tax.
At the end of 4Q’22, the Group had:
• over 24.5 mn total current account customers with a total balance of
RUB 661 bn across all accounts
• over 900k total SME customers, with a total account balance of RUB 220
bn
• over 4.2 mn total Tinkoff Investments customers
In FY’22, our total operating expenses increased 35% y-o-y to RUB 139.3 bn
(FY’21: RUB 102.9 bn)
The Group reported net profit of RUB 20.8 bn in FY’22. The quarterly net
profit reached RUB 10.7bn, a quarter-on-quarter increase of 83%.
In 4Q’22, total assets grew by 21.3% since the end of 2021 to RUB 1,599 bn
(31 Dec’21: RUB 1,318 bn).
The Group’s net loan book remained stable since the end of 2021 at RUB 606
bn (31 Dec’21: RUB 606 bn), while the gross loan book increased by 7% to
RUB 732 bn (31 Dec’21: RUB 684 bn).
The Group’s NPL ratio widened to 12.1% (31 Dec’21: 8.6%), while credit
loss allowance coverage was at 1.4x non-performing loans.
The Group’s customer accounts increased by 26% since the end of 2021 to
RUB 1,192 bn as of 31 Dec’22 (31 Dec’21: RUB 946 bn).
Total equity increased by 17% to RUB 206 bn at the end of FY’22 (31
Dec’21: RUB 176 bn) on the back of net profit capitalization.
Sanctions
On 25 February 2023, the Bank became subject to an asset freeze in the EU
under the Council Implementing Regulation (EU) No 2023/429, implementing
Council Regulation (EU) No 269/2014 (the "EC Regulation 269").
The Company and its controlled subsidiary undertakings (other than the
Bank and any controlled subsidiary undertakings of the Bank) are not
subject to an asset freeze pursuant to EC Regulation 269 or to other EU
sanctions. The Management of the Group is assessing its impact on the
business.
Dividends
In November 2021, the Group temporarily suspended dividend payments, a
decision that remained intact throughout and in respect of 2022 amid
increasing market uncertainty. This suspension is now extended until
firther notice into FY2023.
Guidance for FY 2023
The Groups abstains from providing a detailed guidance for its FY 2023
outloook at this stage until more clarity appears with respect to the
overall operating environment.
The financial statements will be available on the TCS Group Holding Plc
website at 1 https://tcsgh.com.cy/documentation/folder-2/
For enquiries:
2 IR@tcsgh.com.cy
About TCS Group
TCS Group is an innovative provider of digital financial and lifestyle
services. Branchless since its inception in 2006, TCS developed a full
range of in-house proprietary technology solutions and services, including
digital banking, brokerage, acquiring and other merchant solutions,
insurance, SME banking and much more.
UK MAR
This announcement is released by TCS Group Holding plc and contains inside
information for the purposes of Article 7 of the Market Abuse Regulation
(EU) 596/2014 as it forms part of domestic law by virtue of the European
Union (Withdrawal Act) 2018 ("UK MAR") and is disclosed in accordance with
the Company's obligations under Article 17 of UK MAR.
Forward-looking statements
Some of the information in this announcement may contain projections or
other forward-looking statements regarding future events or the future
financial performance of the Group and Tinkoff Bank. You can identify
forward looking statements by terms such as "expect", "believe",
"anticipate", "estimate", "intend", "will", "could," "may" or "might", the
negative of such terms or other similar expressions. The Group and Tinkoff
Bank wish to caution you that these statements are only predictions and
that actual events or results may differ materially. The Group and Tinkoff
Bank do not intend to update these statements to reflect events and
circumstances occurring after the date hereof or to reflect the occurrence
of unanticipated events. Many factors could cause the actual results to
differ materially from those contained in projections or forward-looking
statements of the Group and Tinkoff Bank, including, among others, general
economic conditions, the competitive environment, risks associated with
operating in Russia, rapid technological and market change in the
industries the Group operates in, as well as many other risks specifically
related to the Group, Tinkoff Bank and their respective operations.
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Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EquityStory RS.
The issuer is solely responsible for the content of this announcement.
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ISIN: US87238U2033
Category Code: ACS
TIDM: TCS
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 230176
News ID: 1583629
End of Announcement EquityStory RS News Service
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References
Visible links
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2. mailto:IR@tcsgh.com.cy
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