Company Announcements

TCS Group Holding PLC: Statement on Tinkoff Bank's RAS Financial Highlights for January - June 2019

Source: EQS
<html xmlns="http://www.w3.org/1999/xhtml"><body><table border="0" cellpadding="0" cellspacing="0"><tr><td> <p><org>TCS Group Holding PLC</org> (TCS)<br/> <org>TCS Group Holding PLC</org>: Statement on <org>Tinkoff Bank&apos;s</org> RAS Financial Highlights for January - <chron>June 2019</chron> <br/><br/><span><chron>26-Jul-2019</chron> / <chron>18:02 MSK</chron></span><br/> Dissemination of a Regulatory Announcement, transmitted by EQS Group.<br/> The issuer is solely responsible for the content of this announcement.<br/><br/></p> <hr/><div><div> <p style="margin-top:0pt; margin-bottom:30pt; line-height:24pt"><span style="font-family:Arial; font-size:24pt">Statement</span><span style="font-family:Arial; font-size:24pt">&#160;</span><span style="font-family:Arial; font-size:24pt">on</span><span style="font-family:Arial; font-size:24pt">&#160;</span><span style="font-family:Arial; font-size:24pt"><org>Tinkoff Bank&apos;s</org> RAS Financial Highlights for</span><span style="font-family:Arial; font-size:24pt"> </span><span style="font-family:Arial; font-size:24pt">January -</span><span style="font-family:Arial; font-size:24pt"> </span><span style="font-family:Arial; font-size:24pt">June</span><span style="font-family:Arial; font-size:24pt"> </span><span style="font-family:Arial; font-size:24pt">201</span><span style="font-family:Arial; font-size:24pt">9</span><span style="font-family:Arial; font-size:24pt"> </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold"><location value="LU/ru..moscow" idsrc="xmltag.org" >Moscow</location>,</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold"><location value="LC/ru" idsrc="xmltag.org" >Russia</location></span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold">-</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold">2</span><span style="font-family:Arial; font-weight:bold">6</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">July</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold">201</span><span style="font-family:Arial; font-weight:bold">9</span><span style="font-family:Arial; font-weight:bold">.</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial"><org>TCS Group Holding PLC</org> (TCS LI) (the &quot;Group&quot;), </span><span style="font-family:Arial"><location value="LC/ru" idsrc="xmltag.org" >Russia&apos;s</location> leading provider of online financial </span><span style="font-family:Arial">and lifestyle </span><span style="font-family:Arial">services</span><span style="font-family:Arial"> via its Tinkoff.ru ecosystem,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">today announces <org>Tinkoff Bank&apos;s</org> unaudited RAS financial highlights</span><span style="font-family:Arial"> </span><span style="font-family:Arial">for</span><span style="font-family:Arial"> </span><span style="font-family:Arial">January - </span><span style="font-family:Arial">June</span><span style="font-family:Arial"> </span><span style="font-family:Arial">201</span><span style="font-family:Arial">9</span><span style="font-family:Arial">.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">For </span><span style="font-family:Arial">the</span><span style="font-family:Arial"> </span><span style="font-family:Arial">six </span><span style="font-family:Arial">month</span><span style="font-family:Arial">s</span><span style="font-family:Arial"> </span><span style="font-family:Arial">of</span><span style="font-family:Arial"> </span><span style="font-family:Arial">201</span><span style="font-family:Arial">9</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> n</span><span style="font-family:Arial">et income</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">stood at </span><span style="font-family:Arial">RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">1</span><span style="font-family:Arial">1</span><span style="font-family:Arial">.</span><span style="font-family:Arial">5b</span><span style="font-family:Arial">n</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">which is attri</span><span style="font-family:Arial">buted to growth of net interest incom</span><span style="font-family:Arial">e</span><span style="font-family:Arial">, </span><span style="font-family:Arial">stable</span><span style="font-family:Arial"> </span><span style="font-family:Arial">cost of funding</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">good</span><span style="font-family:Arial"> </span><span style="font-family:Arial">quality of the loan portfolio</span><span style="font-family:Arial"> and growth of revenue from new business lines</span><span style="font-family:Arial">.</span><span style="font-family:Arial"> </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">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</span><span style="font-family:Arial">.</span><span style="font-family:Arial"> </span><span style="font-family:Arial">T</span><span style="font-family:Arial">herefore</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> RAS figures should not be used as the basis for conclusions on forthcoming IFRS results.</span><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">The </span><span style="font-family:Arial">gross loan portfolio</span><span style="font-family:Arial"> </span><span style="font-family:Arial">amounted to RUB </span><span style="font-family:Arial">339</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">representing an increase of</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">75</span><span style="font-family:Arial">% y-o-y. The net loan portfolio amounted to RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">292</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">having increased by </span><span style="font-family:Arial">79</span><span style="font-family:Arial">%</span><span style="font-family:Arial"> y-o-y</span><span style="font-family:Arial"> and</span><span style="font-family:Arial"> constitute</span><span style="font-family:Arial">d</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">66</span><span style="font-family:Arial">% of total assets (</span><span style="font-family:Arial">53</span><span style="font-family:Arial">% at year-end </span><span style="font-family:Arial">201</span><span style="font-family:Arial">8</span><span style="font-family:Arial">).</span><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">Retail customer accounts</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">stood at</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">RUB </span><span style="font-family:Arial">2</span><span style="font-family:Arial">74</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">.</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">Tinkoff </span><span style="font-family:Arial">Bank</span><span style="font-family:Arial"> continued to</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">retain </span><span style="font-family:Arial">substantial</span><span style="font-family:Arial"> liquidity:</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">the CBR N2 ratio stood at</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">38</span><span style="font-family:Arial">% (minimum</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">requirement: 15%), and the CBR N3 ratio was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">106</span><span style="font-family:Arial">% (minimum</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">requirement: 50%). Retail</span><span style="font-family:Arial"> customer accounts constitute</span><span style="font-family:Arial">d</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">72</span><span style="font-family:Arial">% of total liabilities.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">Total assets</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">increased by</span><span style="font-family:Arial"> </span><span style="font-family:Arial">51</span><span style="font-family:Arial">% y-o-y to RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">440</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">A</span><span style="font-family:Arial">s of 1</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">July</span><span style="font-family:Arial"> </span><span style="font-family:Arial">201</span><span style="font-family:Arial">9, </span><span style="font-family:Arial">t</span><span style="font-family:Arial">otal capital including retained profits (based on Form 123)</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">amounted to RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">7</span><span style="font-family:Arial">8</span><span style="font-family:Arial">.</span><span style="font-family:Arial">2</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">.</span><span style="font-family:Arial"> </span><span style="font-family:Arial">The CBR N1</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">capital adequacy ratio</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">11</span><span style="font-family:Arial">.</span><span style="font-family:Arial">15</span><span style="font-family:Arial">%. Core Capital Adequacy Ratio (N1.1) </span><span style="font-family:Arial">was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">7</span><span style="font-family:Arial">.</span><span style="font-family:Arial">72</span><span style="font-family:Arial">%</span><span style="font-family:Arial"> </span><span style="font-family:Arial">and Main Capital Adequacy Ratio (N1.2) </span><span style="font-family:Arial">was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">1</span><span style="font-family:Arial">0</span><span style="font-family:Arial">.</span><span style="font-family:Arial">42</span><span style="font-family:Arial">%.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; text-decoration:underline">Note on RAS results</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">Please note that the figures in this press release are calculated in accordance with T</span><span style="font-family:Arial">inkoff</span><span style="font-family:Arial"> Bank&apos;s internal methodology which is available at:</span><span style="font-family:Arial">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </span><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial"><a href="http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf">http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf</a></span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">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:</span></p> <ul style="margin:0pt; padding-left:0pt" type="disc"><li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">Consolidated results under IFRS include a number of additional items and results of its subsidiaries</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">Accrual of expenses under IFRS</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">Timing differences in accounting for restructured loans (&apos;instalments&apos;) and loans going through courts</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">The effect from the revaluation of currency derivative instruments</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">The effect of deferred income tax.</span></li> </ul><p style="margin-top:0pt; margin-left:35.45pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse"><tbody><tr><td colspan="2" style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"> <p style="margin-top:6pt; margin-bottom:12pt; text-align:justify; font-size:12pt"><span style="font-family:Arial; font-weight:bold">For enquiries</span><span style="font-family:Arial; font-weight:bold">:</span></p> </td> </tr><tr><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial"><org>Tinkoff Bank</org></span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold">Darya Ermolina</span><br/><span style="font-family:Arial">Head of PR</span><span style="font-family:Arial"> </span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><span style="font-family:Arial">+ 7 495 648</span><span style="font-family:Arial">-</span><span style="font-family:Arial">10-00 (</span><span style="font-family:Arial">ext</span><span style="font-family:Arial">. 2009)</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><a href="mailto:d.ermolina@tinkoff.ru" style="text-decoration:none"><span style="font-family:Arial; text-decoration:underline; color:#0000ff">d.ermolina@tinkoff.ru</span></a></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt">&#160;</p> </td> <td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial"><org>Tinkoff Bank</org></span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold"><person>Larisa Chernysheva</person></span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">IR Department</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><span style="font-family:Arial">+ 7 495 648</span><span style="font-family:Arial">-</span><span style="font-family:Arial">10-00 (</span><span style="font-family:Arial">ext</span><span style="font-family:Arial">. 2312)</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><a href="mailto:ir@tcsbank.ru" style="text-decoration:none"><span style="font-family:Arial; text-decoration:underline; color:#0000ff">ir@tinkoff.ru</span></a></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> </td> </tr></tbody></table><p style="margin-top:12pt; margin-bottom:12pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold">About the Group</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial"><org>TCS Group Holding PLC</org> is an innovative provider of online retail financial services. It includes <org>Tinkoff Bank</org>, mobile virtual network operator Tinkoff Mobile, <org>Tinkoff Insurance</org>, 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.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">The Group was founded in 2006 by Russian entrepreneur <person>Oleg Tinkov</person> and has been listed on the <org>London Stock Exchange</org> since <chron>October 2013</chron>.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">The Group&apos;s key business is <org>Tinkoff Bank</org>, the country&apos;s first and only direct bank and the core of the Tinkoff.ru ecosystem.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial"><org>Tinkoff Bank</org> is the second largest player in the Russian credit card market, with a share of 12.4% as of <chron>1 April 2019</chron>. The 1Q&apos;19 IFRS net income of <org>TCS Group Holding PLC</org> amounted to <money>RUB 7.2 bn</money>, ROE stood at 64.4%.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">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 <location value="LR/eur" idsrc="xmltag.org" >Europe</location>. To ensure smooth delivery of the Group&apos;s products, the Group has a nationwide network of over 2,500 representatives.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">In 2018 Global Finance named <org>Tinkoff Bank</org> the world&apos;s Best Consumer Digital Bank, in 2018, 2016 and 2015, the Best Consumer Digital Bank in <location value="LC/ru" idsrc="xmltag.org" >Russia</location>, and in 2017 and 2013 The Banker recognised it as the Bank of the Year in <location value="LC/ru" idsrc="xmltag.org" >Russia</location>. The bank&apos;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).</span></p> </div> </div> <br/><hr/></td> </tr></table><table><tr><td align="left" valign="top" nowrap="nowrap"/> <td align="left" valign="top"/> </tr><tr><td align="left" valign="top" nowrap="nowrap">ISIN:</td> <td align="left" valign="top">US87238U2033</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">Category Code:</td> <td align="left" valign="top">MSCL</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">LSE Ticker:</td> <td align="left" valign="top">TCS</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">LEI Code:</td> <td align="left" valign="top">2534000KL0PLD6KG7T76</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">Sequence No.:</td> <td align="left" valign="top">14837</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">EQS News ID:</td> <td align="left" valign="top">847641</td> </tr></table><br/><table border="0" cellpadding="0" cellspacing="0"><tr><td align="left" valign="top" colspan="2"/> </tr></table><table border="0"><tr><td align="left" valign="top" colspan="2">&#160;</td> </tr><tr><td align="left" valign="top">End of Announcement</td> <td align="left" valign="top"><org>EQS News Service</org></td> </tr></table><table border="0" width="600" cellpadding="0" cellspacing="0"><tr><td> <hr/></td> </tr></table><p> </p> <img src="https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=show_t_gif&amp;application_id=847641&amp;application_name=news&amp;site_id=acquiremedia_html" alt="fncls.ssp?fn=show_t_gif&amp;application_id=847641&amp;application_name=news&amp;site_id=acquiremedia_html" width="0" height="0" border="0"/></body></html>
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