REG - TCS Grp Hldg PLC - Tinkoff Bank's RAS Financial Highlights for 1M2015 <Origin Href="QuoteRef">TCSq.L</Origin>

TCS HoldingAnnouncement

17/02/2015 12:41

RNS Number : 1422F
TCS Group Holding PLC
17 February 2015
StatementonTinkoff Bank's RAS Financial Highlights for January 2015 
Moscow,Russia-17February2015.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 January2015.
In January 2015, net incomewas RUB113mn. The reduction in net income was attributed to higher interest expenses, increased loan provisioning andlosses from operations with foreign currencies(due to theRussian Ruble devaluation). Tinkoff Bank has very little FX exposure hedging its long-term liabilities with swaps. The difference in 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 97.1bnrepresenting an increase of15% y-o-y. The net loan portfolio amounted to RUB69.5bndecreasing by 3% y-o-y. The net loan portfolio constituted59% of total assets (63% at year-end 2014).
Retail customer accountsincreased by8% y-o-ytoRUB 44.4bn.Tinkoff Bankretained a high level of liquidity:the CBR N2 ratio stood at160.9% (minimumrequirement: 15%), and the CBR N3 ratio was257.7% (minimumrequirement: 50%). Retail customer accounts constituted45% of total liabilities and remained flat compared to 2014.
Total assetsincreased by11% y-o-y to RUB117.8bn.In 2014,Tinkoff Bank fully redeemed itsEurobond (USD 175mln) and three tranches of Euro-Commercial Paper for a total amount of USD 145mln.
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 a result, total capital including retained profits (based on Form 123)increasedby37% y-o-y to RUB22.8bnas of 1February2015. The CBR N1capital adequacy ratiowas15.19%. Both Core Capital Adequacy Ratio (N1.1) and Main Capital Adequacy Ratio (N1.2) were9.05%.
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.
For enquiries:
Tinkoff Bank
Darya Ermolina
Head of PR
+ 7 495 648-10-00 (ext. 2009)
d.ermolina@tinkoff.ru
Tinkoff Bank
Peter Russell
IR Director
+44 20 3691 2049
ir@tinkoff.ru
FTI Consulting London
Larisa Millings
+44 (0) 20 3727 1364
FTI Consulting Moscow
Olga Lundquist
+7 495 795-06-23
About the Group
TCS Group Holding PLC is an innovative provider of online retail financial services which includes Tinkoff Bank and Tinkoff Insurance and operates 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 2006 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 with a market share of 6.7% based on non-delinquent receivables (according to Central Bank of Russia (CBR) data, as of 1 October 2014).
As of 1 November 2014, the Group has issued over 4.8 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 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. 
According to the Group's IFRS results as of 30 September 2014, the Group's total assets amounted to RUB 96.5 bn, net loans and advances to customers stood at RUB 74.7 bn and customer accounts (deposits) amounted to RUB 41.3 bn. In 9M 2014, the Group generated a net profit of RUB 2.8 bn and net interest income of RUB 23.1 bn. 
The Group is well capitalised with the total capital ratio and Tier 1 capital ratio of 26.6% and 21.2%, 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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