REG-TCS Group Holding PLC Statement on Tinkoff Bank's RAS Financial Highlights for January 2017 <Origin Href="QuoteRef">TCSq.L</Origin>

TCS HoldingAnnouncement

20/02/2017 12:00

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   TCS Group Holding PLC / Miscellaneous - Urgent Priority
   Statement on Tinkoff Bank's RAS Financial Highlights for January 2017

   20-Feb-2017 / 12:59 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS,
   LLC - a company of EQS Group AG.
   The issuer is solely responsible for the content of this announcement.

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   Statement on Tinkoff Bank's RAS Financial Highlights for January 2017

   Moscow, Russia - 20 February 2017. TCS Group Holding PLC (TCS LI) (the
   'Group'), Russia's leading provider of online retail financial services,
   including Tinkoff Bank and Tinkoff Insurance, today announces Tinkoff Bank's
   unaudited RAS financial highlights for January 2017.

   For the first month of 2017, net income stood at RUB 1.7bn versus RUB 749mn
   in January 2016 which is attributed to the growth of net interest income,
   lower cost of funding, improved quality of the loan portfolio and growth of
   revenue from new business lines.

   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. Therefore, RAS figures should not be used
   as the basis for conclusions on forthcoming IFRS results.

   The gross loan portfolio amounted to RUB 121.4bn representing an increase of
   17% y-o-y. The net loan portfolio amounted to RUB 100.7bn having increased by
   24% y-o-y and constituted 60% of total assets (58% at year-end 2016).

   Retail customer accounts stood at RUB 113.2bn. Tinkoff Bank continued to
   retain substantial liquidity: the CBR N2 ratio stood at 35% (minimum
   requirement: 15%), and the CBR N3 ratio was 162% (minimum requirement: 50%).
   Retail customer accounts constituted 80% of total liabilities.

   Total assets increased by 20% y-o-y to RUB 167.8bn.

   As of 1 February 2017, total capital including retained profits (based on
   Form 123) amounted to RUB 28.3bn. The CBR N1 capital adequacy ratio was
   11.47%. Both Core Capital Adequacy Ratio (N1.1) and Main Capital Adequacy
   Ratio (N1.2) were 8.72%.

   Our strong January 2017 RAS results are driven by two major continuing
   trends:

   a) the consistent, high-quality growth of our consumer finance business;

   b) the growing contribution from our non-credit, fee-and-commission business
   lines.

   These trends enable us to reiterate our IFRS guidance for 2017 with respect
   to our growth and profitability targets.

   With an ROE of over 35%, we have an excellent organic capital generation
   capacity and are well placed to adjust to the new RWA rules expected to be
   put in place in the near future.

   Given the company's strong financial performance, and contrary to media
   speculation, the Company has no need to raise funds from the equity capital
   markets, and no plans to do so in the near-term. Needless to say, Management
   are as usual evaluating various funding opportunities in order to keep a wide
   range of options open.

   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                  Tinkoff Bank
   Darya Ermolina                Larisa Chernysheva
   Head of PR                    IR Department
   + 7 495 648-10-00 (ext. 2009) + 7 495 648-10-00 (ext. 2312)
    1 d.ermolina@tinkoff.ru       2 ir@tinkoff.ru

    

   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. The
   Group has also developed a 'smart courier' network covering almost all cities
   and towns in Russia which allows next day delivery to many customers.

   Tinkoff Bank's product range includes credit, debit and prepaid cards,
   deposits, co-branded cards, agent-based mortgage products and investment
   services. With its special focus on mobile, the bank offers mobile
   applications both for its customer base (Mobile Bank) and beyond it (Traffic
   Fines, MoneyTalk, Card 2 Card instant money transfers).

   As per its five-year strategy, the Group has the ambition to become a
   financial marketplace, offering both own brand and partner products.

   As at 1 January 2017, the bank was the second largest player in the Russian
   credit card market, with a market share of 10.3%. The Group's 9M 2016 IFRS
   net income amounted to RUB 7.3 bn.

   In October 2016 Tinkoff Bank was named the largest independent global direct
   bank by Frost & Sullivan. In 2015 and 2016, the Global Finance magazine named
   Tinkoff Bank as the Best Consumer Digital Bank in Russia. In 2016, the bank
   also won Global Finance's Best Integrated Consumer Bank Site award and was
   named the Best Digital Bank in the CEE by Euromoney. The bank's mobile
   application was recognised as the best in Russia by Markswebb Rank & Report
   for three consecutive years in 2014, 2015 and 2016, and by Deloitte for four
   consecutive years from 2013 to 2016.

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   Language:      English
   Company:       TCS Group Holding PLC
                  2nd Floor, Sotiri Tofini 4, Agios Athanasios
                  4102 Limassol
                  Cyprus
   Phone:         +7 495 648-10-00
   Fax:           +7 495 645-59-09
   E-mail:        media@tinkoff.ru
   Internet:      https://www.tinkoff.ru
   ISIN:          US87238U2033
   Listed:        Foreign Exchange(s) London, Moscow
   Category Code: MSCU
   TIDM:          TCS
   LEI Code:      2534000KL0PLD6KG7T76
   Sequence No.:  3865


    
   End of Announcement EquityStory.RS, LLC News Service


   545845  20-Feb-2017 

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References

   Visible links
   1. mailto:d.ermolina@tinkoff.ru
   2. mailto:ir@tcsbank.ru


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