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TCS Group Holding PLC (TCS)
TCS Group Holding PLC Announces New Dividend Policy effective 1 April 2019
28-Dec-2018 / 17:26 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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TCS Group Holding PLC Announces New Dividend Policy effective 1 April 2019
Limassol, Cyprus - 28 December 2018. TCS Group Holding PLC (TCS LI) (the
"Group"), Russia's leading provider of online retail financial and
lifestyle services via its Tinkoff.ru financial supermarket, announces
today that the Board of Directors has adopted a new dividend policy
effective 1 April 2019.
The decision to adopt a new dividend policy was taken after due
consideration by the Group's Board of Directors of a number of factors,
including weighing the Group's need to continue to maintain healthy
buffers above the required capital ratios and thresholds, alongside the
Group's ambitions to support projected above-market loan portfolio growth
in the near and medium term and the Group's commitment to enhance total
shareholder returns, in an ever-tightening regulatory climate and
potentially significant risk weighting changes in Russia from 1 April
2019.
Oliver Hughes, CEO of Tinkoff Bank, commented: "We have always said that
if we need more capital to capture strong loan growth momentum while
retaining portfolio quality, then we would be prepared to reduce
dividends. That time has now come. We believe this is the right move for
long-term sustainable shareholder returns, as we balance dividend payments
in the short-term with new growth opportunities to increase future
returns. The move by the regulator was not unexpected - their preferred
choice of instrument is RWA and they have not hesitated to use it of
late. Time will tell whether this will have the desired effect, but we
welcome this change because we believe that it protects the market from
irrational competition and protects the consumer (who is also our
customer).
Our loan growth is driven primarily by the growth of our customer base as
we continue to diversify our lending product range. We expect another
strong year in 2019 as we continue to execute on our 3-year plan realizing
an annual net income growth potential of 20-40%, as previously
communicated."
The full text of the new dividend policy, as well as the current dividend
policy, can be found on the Group's website at
1 https://www.tinkoff.ru/eng/ir/corporate-governance/.
For enquiries:
Tinkoff Bank
Tinkoff Bank
Larisa Chernysheva
Darya Ermolina IR Department
Head of PR
+ 7 495 648-10-00 (ext. 2312)
+ 7 495 648-10-00 (ext. 2009)
3 ir@tinkoff.ru
2 d.ermolina@tinkoff.ru
About the Group
TCS Group Holding PLC is an innovative provider of online retail financial
services. It includes Tinkoff Bank, mobile virtual operator network
Tinkoff Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of
development hubs in major Russian cities. The Group also has Tinkoff.ru,
an evolving ecosystem that offers financial and lifestyle services.
The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has
been listed on the London Stock Exchange since October 2013.
The Group's key business is Tinkoff Bank, the country's first and only
direct bank and the core of the Tinkoff.ru ecosystem.
Tinkoff Bank is the second largest player in the Russian credit card
market, with a share of 11.4%. The 9M 2018 IFRS net income of TCS Group
Holding PLC amounted to RUB 19 bn (a record high 9M net income in the
Group's history), ROE grew to 72.9%.
With no branches, the Group serves all its customers remotely via online
channels and a cloud-based call centre staffed by over 10,000 employees,
which makes it one of the largest in Europe. To ensure smooth delivery of
the Group's products, the Group has a nationwide network of over 2,500
representatives.
In 2018 Global Finance named Tinkoff Bank the world's Best Consumer
Digital Bank, in 2018, 2016 and 2015, the Best Consumer Digital Bank in
Russia, and in 2017 and 2013 The Banker recognised it as the Bank of the
Year in Russia. The bank's mobile app has been consistently praised by
local and global independent experts as the best of its kind (in 2013,
2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).
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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Attachment
Document title: TCSGH Dividend Policy Effective 1 April 2019
Document: 4 http://n.eqs.com/c/fncls.ssp?u=LCLBYWFFBT
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ISIN: US87238U2033
Category Code: MSCH
TIDM: TCS
LEI Code: 549300XQRN9MR54V1W18
Sequence No.: 7053
EQS News ID: 762475
End of Announcement EQS News Service
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References
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2. mailto:d.ermolina@tinkoff.ru
3. mailto:ir@tcsbank.ru
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