REG-TCS Group Holding PLC TCS Group Holding PLC: Statement on Tinkoff Bank's RAS Financial Highlights for January - June 2017 <TCSq.

TCS HoldingAnnouncement

18/07/2017 14:40

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

   18-Jul-2017 / 15:36 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 - June 2017

   Moscow, Russia - 18 July 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 - June 2017.

    

   For the six months of 2017, net income stood at RUB 9.2bn versus RUB 3.3bn in
   January-June 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 139bn representing an increase
   of 25% y-o-y. The net loan portfolio amounted to RUB 116bn having increased
   by 31% y-o-y and constituted 53% of total assets (57% at year-end 2016). 

    

   Retail customer accounts stood at RUB 127bn. Tinkoff Bank continued to retain
   substantial liquidity: the CBR N2 ratio stood at 77% (minimum requirement:
   15%), and the CBR N3 ratio was 183% (minimum requirement: 50%). Retail
   customer accounts constituted 68% of total liabilities.

    

   Total assets increased by 44% y-o-y to RUB 220bn.

    

   As of 1 July 2017, total capital including retained profits (based on Form
   123) amounted to RUB 35bn. The CBR N1 capital adequacy ratio was 11.96%. Both
   Core Capital Adequacy Ratio (N1.1) and Main Capital Adequacy Ratio (N1.2)
   were 9.79%.

    

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

    

   a)     an ongoing quality growth of our consumer finance business, carrying
   on from 2016;

   b)     a growing contribution from our non-credit fees-and-commission
   business lines.  

    

   In June 2017, TCS Finance D.A.C. successfully issued USD 300,000,000 9.25%
   perpetual callable loan participation notes and on-lent the proceeds from the
   issue to Tinkoff Bank. The application regarding our intention to include
   this issue into the calculation of our statutory capital ratios is currently
   under review by the CBR.

    

   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 daily banking (credit and debit cards,
   payments, money transfers), savings, investments, loyalty programmes, travel
   services, SME services, mortgage platform, and insurance. With its special
   focus on mobile business, the bank offers mobile applications both for its
   customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2
   Card instant money transfers).

   Tinkoff is transitioning to become an online financial marketplace,
   Tinkoff.ru, which offers an entire range of both own brand and partner retail
   financial services via mobile and desktop.

   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 FY2016 IFRS net income
   of the parent company, TCS Group Holding PLC, which includes Tinkoff Bank and
   the insurance company Tinkoff Insurance, amounted to RUB 11 bn, ROE stood at
   43%.

   Banki.ru, Russia's largest financial news portal, named Tinkoff Bank the Bank
   of the Year 2016. 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: MSCM
   TIDM:          TCS
   LEI Code:      2534000KL0PLD6KG7T76
   Sequence No.:  4429


    
   End of Announcement EquityStory.RS, LLC News Service

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   593681  18-Jul-2017 

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References

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


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