REG - TCS Grp Hldg PLC - Tinkoff Bank RAS Financial Results for 2M 2015 <Origin Href="QuoteRef">TCSq.L</Origin>

TCS HoldingAnnouncement

18/03/2015 16:01

RNS Number : 8238H
TCS Group Holding PLC
18 March 2015
StatementonTinkoff Bank's RAS Financial Highlights for January-February 2015 
Moscow,Russia-18March2015.TCS Group Holding PLC (TCS LI) (the "Group"), includingTinkoff Bank, Russia's leading provider of online retail financial services, today announces Tinkoff Bank's unaudited RAS financial highlights for January-February2015.
For the first two months of 2015, net incomestood at RUB600mn. The year-on-year reduction in net income was attributed to the decrease in top line due to lower net loan portfolio, higher interest expenses, increased loan provisioning andlosses from operations with foreign currencies(due to theRussian Ruble devaluation). Tinkoff Bank has low FX exposure hedging its long-term liabilities with swaps. The difference in the revaluation of swaps and liabilities is the main cause for the losses.
It should be noted that the RAS net income figure is not a reliable indicator of IFRS net income for the same period. There is a very low correlation between financial results under the two reporting standards as a result of significant accounting differences and therefore RAS figures should not be used as the basis for conclusions on forthcoming IFRS results.
The gross loan portfolio amounted to RUB 95.5bnrepresenting an increase of12% y-o-y. The net loan portfolio amounted to RUB68.9bnhaving decreased by 4% y-o-y. The net loan portfolio constituted59% of total assets (63% at year-end 2014).
Retail customer accountsincreased by14% y-o-yand by 15% since the beginning of the year toRUB 47.7bn.Tinkoff Bankretained a high level of liquidity:the CBR N2 ratio stood at179.9% (minimumrequirement: 15%), and the CBR N3 ratio was380.2% (minimumrequirement: 50%). Retail customer accounts constituted49% of total liabilities.
Total assetsincreased by11% y-o-y to RUB116.3bn.
On 26 March 2014, Tinkoff Bank increased its registered share capital by RUB 5.3bnfollowingthecompletion of the registration of IPO proceeds with the CBR.In December 2014, Tinkoff Bank paid dividends to its shareholders in the amount of RUB 3bn. As of 1March2015, total capital including retained profits (based on Form 123)increasedby36% y-o-y to RUB23.2bn. The CBR N1capital adequacy ratiowas15.4%. Both Core Capital Adequacy Ratio (N1.1) and Main Capital Adequacy Ratio (N1.2) were9.27%.
Note on RAS results
Please note that the figures in this press release are calculated in accordance with Tinkoff Bank's internal methodology which is available at: 
http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf
RAS results are not a reliable indicator of IFRS results due to significant accounting differences that make a direct read-across from RAS to IFRS results impossible. The main differences between RAS and IFRS are:
 Consolidated results under IFRS include a number of additional items and results of its subsidiaries
 Accrual of expenses under IFRS
 Timing differences in accounting for restructured loans ('instalments') and loans going through courts
 The effect from the revaluation of currency derivative instruments
 The effect of deferred income tax.
About the Group
TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. In order to support its branchless platform, the Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers. 
Since its launch in 2007 by Mr Oleg Tinkov, a renowned Russian entrepreneur with a long track record of creating successful businesses, the Group has grown into a leader in the Russian credit card market. As of 1 March 2015, the Group has issued 5 mln credit cards.
In addition to a market-leading credit card offering, the Group has developed a successful online retail deposits programme. The Group's other innovative lines of business include Tinkoff Online Insurance, which enables the Group to underwrite and sell its own innovative online insurance products, and Tinkoff Mobile Wallet, mobile payment solutions and financial services for Russian consumers. 
As of 31 December 2014, the Group's total assets amounted to RUB 108.8 bn, net loans and advances to customers stood at RUB 74.6 bn and customer accounts (deposits) amounted to RUB 43.4 bn. In 2014, the Group generated a net profit of RUB 3.4 bn and net interest income of RUB 30.8 bn. 
The Group is well capitalised with the total capital ratio and Tier 1 capital ratio of 21.8%and 15.9%, respectively, in accordance with Basel III methodology.

This information is provided by RNS
The company news service from the London Stock Exchange
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