REG-TCS Group Holding PLC TCS Group Holding PLC reports IFRS results for 4Q and FY 2022

TCS HoldingAnnouncement

15/03/2023 16:45

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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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    3 fncls.ssp?fn=show_t_gif&application_id=1583629&application_name=news&site_id=refinitiv

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f5d1cefc51c722af3669c4b48a0bfa5e&application_id=1583629&site_id=refinitiv&application_name=news
   2. mailto:IR@tcsgh.com.cy


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