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TCS - TCS Holding News Story

$25.5 0.4  1.4%

Last Trade - 10:42am

Sector
Financials
Size
Large Cap
Market Cap £3.74bn
Enterprise Value £3.99bn
Revenue £1.52bn
Position in Universe 191st / 1816

UPDATE 1-Russian bank TCS sees slower growth in 2020 after strong first quarter

Wed 13th May, 2020 9:51am
(Adds detail)
    MOSCOW, May 13 (Reuters) - Russian bank TCS Group Holding
 TCSq.L  said on Wednesday its first-quarter net profit rose 26%
year-on-year to 9 billion roubles ($122.6 million) and that it
expected to remain profitable this year despite slower growth. 
    TCS, the parent company of Tinkoff Bank, said it was 
withdrawing its 2020 guidance because of the uncertainty
surrounding the coronavirus pandemic.
    Russia as of Wednesday had reported 242,271 cases of the
coronavirus and 2,212 deaths.   
    "The group is withdrawing its previously issued 2020
guidance, and will not issue new guidance for 2020 unless and
until market conditions stabilise," it said. 
    Major Russian banks Sberbank  SBER.MM  and VTB  VTBR.MM ,
have also said they could adjust their guidance depending on the
economic fallout from the pandemic.
    Russia's central bank has warned that a spike in bad loans
caused by the coronavirus was expected in the second half of the
year or in early 2021.  urn:newsml:reuters.com:*:nL8N2CQ2EF   
    TCS also said its net portfolio would be "negatively
affected by rising provisions" for the remainder of 2020. It
said its non-performing loan ratio rose to 9.4%, up from 9.1% in
the fourth quarter of 2019.
    The bank said its return on equity in the first quarter
stood at 37.5% year-on-year, nearly 27 percentage points lower
than for the same period last year.     
    TCS said it expected to remain profitable in 2020 "given it
started the year with very strong liquidity and capital
positions." 
    The bank said its board had approved a second interim gross
dividend payment of $0.14 per share.
    "We understand the need to be sensible about capital returns
in this uncertain environment," Oliver Hughes, chief executive
officer of Tinkoff Bank, said in a statement. 
    "We have no plans to alter our dividend policy of paying up
to 30% of quarterly net income, but we will prioritise the
capital needs of the business ahead of dividends if the
situation demands it."
    TCS has recently made changes to its corporate governance,
including its founder Oleg Tinkov stepping down last month as
chairman of the board of Tinkoff Bank to treat his acute
leukaemia.  urn:newsml:reuters.com:*:nL8N2BQ609  urn:newsml:reuters.com:*:nL8N2AZ11F

($1 = 73.4310 roubles)

 (Reporting by Maria Kiselyova and Tatiana Voronova; Writing by
Gabrielle Tétrault-Farber; Editing by Katya Golubkova and Jane
Merriman)
 ((Gabrielle.Tetrault-Farber@thomsonreuters.com;))
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