REG-TCS Group Holding PLC TCS Group Holding PLC Announces New Dividend Policy effective 1 April 2019

TCS HoldingAnnouncement

28/12/2018 14:30

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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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    5 fncls.ssp?fn=show_t_gif&application_id=762475&application_name=news&site_id=reuters6

References

   Visible links
   1. https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c1b2c2534827955c8f86a8553135e996&application_id=762475&site_id=reuters6&application_name=news
   2. mailto:d.ermolina@tinkoff.ru
   3. mailto:ir@tcsbank.ru
   4. https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=71341a7276e65189cb22ea53277301c9&application_id=762475&site_id=reuters6&application_name=news


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