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TCS - TCS Holding News Story

$26.35 -0.1  -0.6%

Last Trade - 18/09/20

Large Cap
Market Cap £4.00bn
Enterprise Value £4.08bn
Revenue £1.62bn
Position in Universe 182nd / 1807

UPDATE 1-Russia's TCS net income up 75 pct in Q3, approves extra dividend

Mon 20th November, 2017 8:10am
* Net profit at 5 bln roubles, in line with f'cast 
    * Targeting at least 24 bln roubles net profit in 2018 
 (Adds detail, background, quotes) 
    MOSCOW, Nov 20 (Reuters) - Russian consumer lender TCS Group 
 TCSq.L  reported a 75-percent increase in net profit in the 
third quarter year-on-year on Monday, saying its performance had 
allowed it to approve extra dividends. 
    TCS Group's performance stood out from Russia's wider 
banking sector which has been shaken by the bailouts of two 
major lenders in the space of a month. 
    The group said net profit increased to 5.0 billion roubles  
($84.33 million) in the third quarter, in line with a forecast 
of analysts polled by Reuters.*:nL8N1NN3LN 
    It said its main business, Tinkoff Bank, was the 
second-largest credit card player in Russia as of Oct. 1, with a 
market share of 11.6 percent.     
    Tinkoff CEO Oliver Hughes told a conference call that profit 
growth had been driven by an expanding loan portfolio and the 
development of businesses outside the core banking field. 
    The group said its board had approved a third interim gross 
dividend for 2017 of $0.22 per share or global depositary 
receipt. That takes the overall amount of dividend payment to 
$40.2 million. 
    "In addition to this, and due to the stronger than expected 
bottom-line result, the Board of Directors approved a special 
interim dividend of $0.18 per share/GDR (with each GDR 
representing one share), with a total dividend payment of around 
$32.9 million," TCS said in its earnings report. 
    The group's net margin, which is the revenue after interest, 
taxes and operating expenses, rose 41 percent to 12.2 billion in 
the July-September period. 
    Return on equity ratio, an indicator of how much profit it 
made from shareholders' investment, increased to 53.7 percent 
from 43.4 percent a year ago. 
    Hughes said the bank was sticking to its 2017 net profit 
guidance of 17 billion roubles and aimed to make at least 24 
billion roubles in net profit next year. 
    Looking forward into 2018, the lender said it was expecting 
net loan growth of at least 25 percent, with the cost of risk 
rising to 7-8 percent from the current 6 percent. 
    "The cost of risks will increase slightly as we have 
attracted many clients this year," Hughes said, adding that he 
was surprised by the low cost of risk level in 2017. 
    In the first nine months of this year, net loans and 
advances to customers rose 30 percent to 134.1 billion, TCS 
($1 = 59.2890 roubles) 
 (Reporting by Andrey Ostroukh and Maria Kiselyova; Editing by 
Andrew Heavens) 
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