REG-TCS Group Holding PLC TCS Group Holding PLC: Statement on Tinkoff Bank's RAS Financial Highlights for January-March 2018

TCS HoldingAnnouncement

26/04/2018 11:20

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   TCS Group Holding PLC (TCS)
   TCS Group Holding PLC: Statement on Tinkoff Bank's RAS Financial Highlights
   for January-March 2018

   26-Apr-2018 / 13:18 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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   Statement on Tinkoff Bank's RAS Financial Highlights for January-March 2018

   Moscow, Russia - 26 April 2018. TCS Group Holding PLC (TCS LI) (the "Group"),
   Russia's leading provider of online retail financial services via its
   Tinkoff.ru financial supermarket, today announces Tinkoff Bank's unaudited
   RAS financial highlights for March 2018.

    

   For the first three months of 2018, net income stood at RUB 5.5bn versus RUB
   4.7bn in January-March 2017, 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 176bn representing an increase
   of 38% y-o-y. The net loan portfolio amounted to RUB 150bn having increased
   by 41% y-o-y and constituted 54% of total assets (51% at year-end 2017). 

    

   Retail customer accounts stood at RUB 156bn. Tinkoff Bank continued to retain
   substantial liquidity: the CBR N2 ratio stood at 57% (minimum requirement:
   15%), and the CBR N3 ratio was 147% (minimum requirement: 50%). Retail
   customer accounts constituted 68% of total liabilities.

    

   Total assets increased by 59% y-o-y to RUB 277bn.

    

   As of 1 April 2018, total capital including retained profits (based on Form
   123) amounted to RUB 64.1bn. The CBR N1.0 capital adequacy ratio was 16.72%.
   Core Capital Adequacy Ratio (N1.1) was 10.45% and Main Capital Adequacy Ratio
   (N1.2) was 14.83%.

    

   Our strong March 2018 RAS results are driven by two major continuing trends:

    

   a)     an ongoing quality growth of our consumer finance business;

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

    

    

   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 Tinkoff Bank

   Tinkoff is Russia's first and only direct bank with nearly 7 mln customers.
   The bank was founded in 2006 by the Russian entrepreneur Oleg Tinkov.

   TCS Group Holding PLC, the bank's holding company, has been listed on the
   London Stock Exchange since October 2013. In addition to the bank the Group
   includes mobile virtual operator Tinkoff Mobile, Tinkoff Insurance, and
   Tinkoff Software DC, a network of development hubs across Russia.

   With no retail branches, the bank serves its customers remotely via online
   channels and its call center, and operates a network of over 2,500
   representatives to ensure smooth delivery of its products. The network covers
   all of Russia and allows next day delivery to most customers.

   The bank offers both own brand and partner retail financial services via its
   Tinkoff.ru platform. The 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).

   As at 1 February 2018, the bank was the second largest player in the Russian
   credit card market, with a market share of 11.7%. The 2017 IFRS net income of
   TCS Group Holding PLC amounted to RUB 19 bn, ROE grew to 52.8%.

   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 2016 and 2015, 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. In 2016, Tinkoff Bank was named the Best Digital
   Bank in the CEE by Euromoney. Its mobile application was recognised as the
   best in Russia by Markswebb Rank & Report in 2014, 2015 and 2016, and by
   Deloitte for four years in a row in 2013-2016.

   Tinkoff Bank is a General Partner of the St. Petersburg International
   Economic Forum (SPIEF) in 2018.

   Tinkoff Bank is a member of the deposit insurance system (the system
   guarantees each depositor of member banks a payout of RUB 1.4 mln on deposits
   and current accounts, including interest income). 

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   ISIN:          US87238U2033
   Category Code: MSCL
   TIDM:          TCS
   LEI Code:      2534000KL0PLD6KG7T76
   Sequence No.:  5467


    
   End of Announcement EQS News Service

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   679701  26-Apr-2018 

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References

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


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